Using household survey data gathered from 305 Ethiopian coffee farmers, the determinants and impacts of cooperative membership are explored. A logit model results reveal that the probability of farmers’ membership decision increases with age, education level, family size, and land property. Employing propensity score matching (PSM), no unique membership impact on members’ economic performance and output are found. However, cooperatives have a positive economic benefit to the whole community (members and nonmembers), regardless of membership. The results suggest a need for a mechanism to improve members’ benefits to make cooperatives more meaningful, attractive and sustainable.