The sugarcane-biofuel expansion and dairy farmers' responses in Brazil

► Biofuel-sugarcane expansion leads to differential responses among dairy farmers. ► Labour dynamics is the main driver that shapes sugarcane and dairy interaction. ► The rural-urban interaction has significant influence over farmers' decisions. ► Technology, resilience and diversification explain land use by dairy farming. ► Intensification on dairy and diversification with sugarcane may increase resilience.