This paper analyses which factors drive the structural change in Switzerland. We focus on dairy farms to examine why farmers abandon farming or change to another production type. Using administrative data from the agricultural policy information system, the results from logistic regression show that retirement is one of the main reasons for farm exits. Besides, dairy farms that are more specialized exhibit higher probabilities of farm exit whereas farm size and the adherence to organic or animal welfare standards reduce the exit probabilities. Farm type changes occur rather at younger age and by farms that are acquainted with organic and free-range animal husbandry. These findings highlight the viability of small and less specialized farms in the Swiss dairy sector and the relevance of product differentiation.