The study is conducted in Enderta Woreda, Tigray Region. Three primaryrnco-operatives are taken to assess the overall challenges and opportunitiesrnof co-operatives for agricultural development. Data were collected byrninterviewing 180 respondents based on questioner The assessment wasrnsupplemented by qualitative data collected from focused grouprndiscussion, key informants interview, documents to provide backgroundrninformation and to investigate opportunities and challenges.rnThe study results show that the policy measure 147/98 has createel gooe!rnenvironment for the development of co-operatives. There are about 56rndifferent type of co-operatives established in the woreda s lUely ClreC/.rnSupply of inputs, the existence of household package, provis ion or creelit .rndividend given to members has shown members that they have iJelle/irecirnfrom co-operatives. Growth of co-operatives in total nLllniJer, WI Llrnmembership, tax exemption, and the act of regional government asrncollateral for credit made, are some of opportunities gained to strengthenrnco-operatives.rnHigh price and scarcity of inputs, the existence of private busines s in thernmarket which resulted in no difference in price and quality of inputs isrnseen as challenges. The study shows that co-operatives do not provide thernopportunity of product market of their members. Minimal support 0)'rngovernment is another challenge in the study. Violation of co-operativesrnregulation, lack of sense of ownership, and lade of trained human resou rcernare main problems identified in the study.rnAccording to the study, co-operatives are not operating eJlectively anelrnefficiently and lack co-operative spirit. They are not exploiting the po tentialrnopportunities of the policy environment. Therefore awareness creation and,rncapacity building are very important to realize their potential opportunities.rnCo-operative management skill, entrepreneurial knowledge training andrnethical altitudes and competitiveness are basic ins truments to realize andrnimprove their bargaining power in agricultural productivity