Impact of Dairy Cooperatives in Smallholder Dairy Production Systems: The Case of the Baybay Dairy Cooperative

The dairy sector has been identified as a source of livelihood for some farming households, particularly those involved in milk production. However, the potential of this sector has not been fully realized due to challenges such as low productivity and the lack of market access. Farmer organizations such as Cooperatives have been identified to tackle these issues, enhancing the skills of the dairy farmer. As such, this study seeks to investigate the Baybay Dairy Cooperative’s impact on carabao farmers’ production systems. This study employed the Mann-Whitney U test and correlation analysis to investigate the impact of dairy cooperative membership on household income, access to credit (financial stability), milk consumption (nutrition), employment, and technology improvement. The study revealed a positive impact on the mentioned variables except employment. The evidence of increased employment remains inconclusive. Recommendations include promoting cooperative participation, targeted interventions for employment, continuous monitoring, and knowledge dissemination. The study’s findings contribute to understanding cooperative impacts on rural economies, emphasizing the need for nuanced strategies for comprehensive development.