Cooperatives play crucial roles in the Ethiopian economy. The sector created approximately 802752 job opportunities supplied agricultural inputs amounts 3504194 ton of DAP and UREA and 3693219.88 quintals of selected seed to members and non-members since the year 2007 up to 2014. In addition to this 2496 consumer cooperatives distributed 3854392585 birr estimated consumption goods to consumers by the year 2014. Even though Cooperatives have significant contribution in Ethiopia the sector has faced many challenges. Agricultural cooperatives in Ethiopia have limited capacity to provide output marketing services have limited capacity and capability to improve the effectiveness and efficiency of their input procurement. Therefore this research will contribute much to improve agricultural cooperatives sector output marketing services that enable farmers to commercialize their farm output and improve agricultural cooperatives sector input procurement and distribution services that enable farmers to get agricultural inputs.
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