When I visited a friends dairy farm in New Zealand that was not my experience. In conventional farming the cows do live outdoors and are free to graze in large paddocks. Twice a day though the cows are full of milk and will be in pain if not milked. The cows are milked in the dairy twice a day and this is where this innovation applies. When out and about they go wherever, when in the dairy though the urine mixing with the poo seems to be an environmental problem.
A conventional dairy farm does not confine the animals it just collects their milk each day and the cows know the routine.