Integration of grassland-based livestock production into sustainable cropping systems represents the key essential to surpass problems such as the low yield of winter cereals and financial risk of farming operations in southern Brazil. The present work was conducted at the Experimental Farm of the Cooperative Agro-industrial COAMO at Campo Mourão, PR in Brazil, from March to October 2003, with the objective to evaluate the effect of management of a oat (Avena sativa L.) plus annual ryegrass (Lolium multiflorum Lam.) winter pasture on plant and animal responses. A completely randomized design with four treatments and two replicates was used. The treatments were grazing to a pasture sward height of 7, 14, 21 and 28 cm, maintained by variable continuous stocking of cattle. Pasture dry mass increased with increasing pasture sward height (P < 0.05). It was observed that in the 21 cm treatment, enough residue was left after the grazing season to provide good conditions for no-till drilling of the summer grain crops. The best results based on animal average daily gain were 1091 kg animal^-1 d^-1 and 1187 kg animal^-1 d^-1 in the 14 cm and 21 cm heights, respectively. We conclude that maintaining pasture sward height between 14 and 21 cm provided the best condition for oat + lolium pasture management, but the 21 cm height assured more cover crop residue that provided good conditions for no-tilling of the summer crops.