In many places on earth, livestock and feed production are decoupled, as feed is grown in one region and fed to livestock in another. This disrupts nutrient cycles by depleting resources in feed producing regions and accumulating resources in livestock areas, which leads to environmental degradation. One solution is to recouple livestock and feed production at a more local level, which enhances nutrient circularity. Recoupling livestock and feed production creates a natural ceiling for livestock numbers based on the feed producing capacity of a region. In this study we assess the consequences of recoupling livestock and feed production (i.e., by avoiding the import and export of animal feed) on ammonia and greenhouse gas (GHG) emissions, with and without feed-food competition. To this end, we used FOODSOM, an agro-ecological food system optimisation model representing the Dutch food system in this study. The Netherlands is one example of a region with high livestock densities and resource accumulation. We found that recoupling decreased livestock numbers (beef cattle: −100 %; dairy cattle: −29 %; broiler chickens: −57 %; laying hens: −67 %; pigs: −62 %; sheep −100 %) and animal-sourced food exports (−59 %) while still meeting the current human diet in the Netherlands. Consequently, ammonia emissions and GHG emissions decreased, and the nitrogen use efficiency increased from 31 % to 38 % at the food systems level. Recoupling alone was almost sufficient to meet national emission targets. Fully meeting these targets required further small changes in livestock numbers. Avoiding feed-food competition decreased livestock productivity and GHG emissions but did not improve nitrogen use efficiency. Total meat production could not meet domestic consumption levels while avoiding feed-food competition, and resulted in additional beef cattle. We show that recoupling livestock and feed production is a promising next step to enhance circularity while decreasing agricultures environmental impact.