Agricultural cooperatives are established used and controlled by their members their basic objective is serving their members needs and expectation. primary societies integrate vertcally to form a cooperative union. the common problems that primary societies have necessitate the establishement of of a cooperative union A cooperative organization is essentially a business organization. It cannot afford to act in a business manner. Otherwise, its end would be as quick as its start. It should, therefore, either improve the standards of service available to its members or affect the price level so that the purchasing power of its members is increased.In short, the effect of cooperative or joint effort should be such that it is felt or is visible to members as well as non-members. But this cannot be possible unless cooperative society reach to size which allows its economic effects of cooperation to act in full swing small-scale cooperatives generally suffer from lack of viability and competitiveness.