Cooperatives play crucial roles in the Ethiopian economy. Cooperatives created approximately 802,752 job opportunities. Since 2007 up to 2014 Agricultural Cooperatives supplied agricultural input approximately 3,504,194 ton DAP and UREA and since 2007 up to 2014 approximately 3,693,219.88 quintal selected seed to members and non-members. In 2014, around 2496 consumers cooperative distributed 3,854,392,585 birr estimated consumption goods. Even though, Cooperatives have significant contribution, 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 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.