Cooperatives play crucial roles in the Ethiopian economy. The sector created approximately 802,752 job opportunities, supplied agricultural inputs amounts 3,504,194 ton of DAP and UREA and 3,693,219.88 quintals of selected seed to members and non-members since the year 2007 up to 2014. In addition to this, 2,496 consumer cooperatives distributed 3,854,392,585 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.