MSCAGR / Department of Agricultural Economics and Agribusiness / Agricultural cooperatives have been generally promoted as a vehicle for smallholder agricultural development in South Africa. As a result, agricultural co-operative registrations in South Africa are increasing. However, research suggests that South African co-operatives have generally not been effective, successful and functional. The study determined factors affecting proper functioning of smallholder agricultural cooperatives in Lepelle Nkumpi Municipality. Simple random sampling method was used to select a sample of 140 active cooperative members from 13 registered agricultural cooperatives. A list of agricultural cooperatives was obtained from the Department of Agriculture, Limpopo Province to facilitate the process. Primary data was collected using designed questionnaires and secondary data was collected from journal articles, internet and other recorded data. All questionnaires were handed out during face to face interviews held with participants. Discriminant analysis was used to analyse the data. The model was used to identify different factors which might have positive or negative effects on the functioning of agricultural cooperatives. The discriminant analysis results revealed that functional smallholder agricultural cooperatives were characterized by high level of training of members; interaction with other stakeholder and satisfaction with the training and assistance received. On the other hand Dysfunctional smallholder agricultural cooperative were characterized by high age group, low level of meeting attendance, large cooperative size, dissatisfaction of assistance and training received and high number of females. The weighting coefficients of the standardized canonical discriminant coefficients of the independent variables showed that variables that discriminated between functional and dysfunctional cooperatives were: cooperative size (-0.852), interaction vi    with stakeholders to improve the level of skill (0.579), satisfaction with assistance provided (0.516), number of females in cooperative (-0.455), years in existence of cooperative (0.452), members participation in decision making (0.407) and age group (0.446). The finding obtained in this study could be quite useful to policy makers. This study recommended that government should intensify effort on cooperative training, extension service and assistance to support functioning of agricultural cooperatives in the study area. Cooperative members should also participate in decision making and attend cooperative meetings to acquire more agricultural information