Abstract
Dairy cooperatives are widely promoted as key institutions for enhancing rural livelihoods, yet evidence on their social and economic performance in Sub-Saharan Africa remains mixed. This study assesses the social and economic performance of dairy cooperatives in Central Malawi using a Structure–Conduct–Performance (SCP) framework. Primary data were collected from 387 dairy farmers across 10 cooperatives using structured questionnaires, Focus Group Discussions, and Key Informant Interviews, complemented by secondary cooperative records. A multilevel mixed-effects regression model was employed to analyze determinants of Social Performance Index (SPI) and productivity, accounting for hierarchical data structure. Findings reveal that while cooperatives demonstrate moderate economic performance with an average milk yield of 6.70 liters per cow per day, profitability varies significantly across cooperatives. Education and income emerge as key determinants of both SPI and productivity, whereas Cooperative Collective Identity (CCI) shows no statistically significant effect. Gender and stakeholder analyses indicate persistent inequalities in workload distribution, decision-making, and training access, despite equitable distribution of financial benefits. Model diagnostics confirm strong cooperative-level effects for SPI (ICC = 0.432) and weaker effects for productivity (ICC = 0.082), highlighting the importance of institutional context in shaping social outcomes. The study concludes that dairy cooperatives in Central Malawi are partially inclusive institutions, achieving economic benefits but facing persistent social and governance constraints. Strengthening gender-responsive governance, capacity building, and institutional reforms is essential for improving overall cooperative performance and sustainability.