in this paper, the authors analyzed the effectiveness of the component 1 of the livestock pilot project (lpp-1) in fostering the efficiency of the uruguayan livestock producers. the study used a unique panel dataset of 520 beneficiary and 470 non-beneficiary producers, dataset that we constructed by merging information from the uruguayan livestock survey of 2001 and 2003 with information collected by the lpp's coordinating unit. the authors found that the lpp-1 had an overall positive impact on the adoption of managerial practices, but it had not a significant impact on both productivity and specialization; also found were positive effects of lpp-1 on productivity when the analysis was restricted to the sub-sample of producers specialized in the breeding stage.