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The study is undertaken under the auspicious of Ethiopian Agricultural Research Organization. It deals with the problems of agricultural marketing and the performance made by the primary Agricultural Cooperatives. Primary agricultural cooperatives in Ethiopia are mainly undertaking input and out put marketing in Ethiopia. They are not disbursing any credit to the farmers. This is one of the limitations of primary cooperatives in Ethiopia. Several cooperatives are dealing in coffee also. The cooperatives are starving for funds during procurement times. Government in several regions help them. In general primary cooperatives are doing very useful service to the farmers.In other regions the cooperatives approach commercial banks for funds, which is a bad ethics. Because in Ethiopia Cooperative Banking is yet to develop. The study shows that primary cooperatives are able to compete with the private trades and provide better services to them.