The study on The Role of Agricultural Marketing Cooperatives in Reducing Rural Poverty- therncase of Yirgachefe Coffee Farmers Cooperative Union and Sidama Elto Farmers CooperativernUnion tried to analyze the overall impact of agricultural marketing cooperatives on ruralrnfarmers with a view of assessing the real and potential role of agricultural marketingrncooperatives on the reduction of rural poverty through Socio-Economic Development of thernrural poor.rnThe study used cross qualitative and quantitative approach by means of structured interviewrnwith sample members in the cooperative sector as the basic data gathering tool followed by in-rndepth interviews with leaders and officials in selected cooperative societies and concernedrnbodies at different levels and focus group discussions with a view to illuminate on the findingrnfrom the secondary data reviews.rnThe study shows that the selected case study cooperatives have considerably contributed to ruralrnpoverty reduction through agricultural cost reduction, access to market and better price forrnoutputs to their members. However, the potentials of the cooperatives and the extent of theirrndevelopment have fallen short of success due to low standard of performance, narrow scope ofrnservices, poor management, financial limitations, corruptions and misuse of funds, and lack ofrncoordinated work of stakeholders.rnThe findings of the study on the selected cooperatives and households show that given thernwillingness of the farmers to join cooperatives, the feeling of belongingness they have to therncooperatives and the participatory method of development the cooperatives have, the rural low-rnincome population would take any opportunity to join cooperatives that would help members tornend poverty at the household level