Agricu_ltu~I co-operatives arc instruments use~ to accelerate the process of agricultural development in less developed countries. Cooper~ tlvcs 1~ less developed_ ~rcas of South Afnca have not, with a few exceptions, been successful in fostering agricultural development and 1mproV1ng the level of hVJng of the rural poor. The paper provides some explanations for the failure of co-operatives to achieve these goals. The_se inc!ude: la~k of mcmbcrship:s identity with co-operatives; lack of understanding on the part of members of the co-operative w~y of domg thm~; failure of_ co-operatives !o c~m~t_c with other b~sincsses; inability of members to dismiss inefficient management; failure o_f co-operatives to pr?VJde transportation; mab1hty of co-operatives to keep adequate stocks of requisites; insufficient credit; and the subsistence nature of agnculturc. The study concludes with proposals to improve the performance of agricultural co-operatives in less developed areas of South Africa.