MULTIDIMENSIONAL IMPACT OF DAIRY COOPERATIVES ON FARMERS' SOCIO-ECONOMIC CONDITIONS AND MEMBERSHIP CONTINUITY: A STRUCTURAL EQUATION MODELLING APPROACH

India’s dairy sector plays a pivotal role in the global agricultural economy, contributing nearly 22% of the world’s total milk production and serving as an important livelihood source for rural households. This achievement is supported by a vast network of small-scale dairy farmers and cooperative institutions that facilitate collective marketing, equitable pricing, and improved market access. Dairy cooperatives modeled on the AMUL framework have significantly contributed to rural development and socio-economic transformation, particularly in Gujarat. Despite their importance, empirical studies examining the multidimensional socio-economic impact of dairy cooperatives at the regional level remain limited. This study investigates dairy farmers’ perceptions regarding the socio-economic impact of dairy cooperatives and examines how these perceptions influence their intention to continue cooperative membership. The study adopts a quantitative cross-sectional research design using primary data collected from 715 dairy farmers in the Banaskantha district of Gujarat through a structured questionnaire. Structural Equation Modeling (SEM) with Maximum Likelihood estimation was employed to analyze the relationships among financial well-being, quality of life, social development, and intention to continue cooperative membership. The results indicate that perceived improvements in financial well-being exert the strongest positive and statistically significant influence on farmers’ intention to continue cooperative membership, followed by quality of life, while standard of living does not demonstrate a statistically significant direct effect. The findings highlight the role of dairy cooperatives in enhancing rural livelihoods and socio-economic development. Future research may examine longitudinal impacts of dairy cooperatives across different regions and incorporate additional institutional and behavioral determinants of cooperative participation.