Due to the drastic decline of coffee prices in the world market, many smallholder farmersrnin Ethiopia switched to growing khat (chat), and some others cut the trees giving shade tornthe coffee plants to produce fuel wood. To reverse the catastrophe, export targeted coffeernjilrmers' cooperative unions were established. This study attempts to assess thernopportunities and examine the performance and constraints of Coffee Farmers'rnCooperative Unions in Ethiopia by taking the case of KFCU in Kafa zone of thernSNNP RS. Four cooperatives were purposively selected out of twenty-six primaryrncooperatives that constitute the KFCU The study employed combinations of qualitativernand quantitative methods of data collection to generate relevant information. Thernfindings of the study showed that due to the constraints it encountered, the union is notrnable to exploit the opportunities and thus ends up with the low level of performance. Thernstudy argues that in a hastily established cooperative society like the KFCU where thernbasic principles of cooperative are not ingrained, the opportunities presented arernrhetorical articulations. In line with this, it was indicated that, among others, lack ofrneducation and training, lack of democratic control which is manifested by externalrninterference and weak organizational strength are the impediments to the union'srnactivities. The study concluded that low level of performance shall not lead to abandonrnthe union but save it through a closer examination of those causes of failure. It furtherrnemphasized, despite the failures of many cooperatives, one should not forget that therernare also many success stories both in the North and in the South. It is thus recommendedrnthat, among others, launching education and training programs, avoiding externalrninterference and enhancing legitimate government support, establishing an independentrnAdvisory Board to the Union's Board of Management are the gateways to future success.