Agricultural cooperatives are considered one of the most important manifestations of organized participation of rural farmers in economic and social affairs. The formation of production cooperatives in Iran resulted from the context created by land reforms, leading to the emergence of new methods in production organization, including the establishment of production cooperatives. Rural production cooperative companies were established with the aim of creating grounds for agricultural development and for the optimal use of water and soil resources. There are 28 active agricultural cooperatives in Sarab city, which is recognized as one of the important agricultural regions of East Azerbaijan Province. This research aims to identify the development strategies of agricultural cooperatives in this region. In this research, a descriptive-analytical method has been used, which describes the phenomenon and analyzes the relationships between variables. The statistical population of this research is Sarab city. In this research, data collection was carried out through two documentary and field methods, which includes the use of both qualitative and quantitative data. In this research, to answer the research questions, both quantitative and qualitative analysis tools and techniques were used simultaneously. The qualitative method used was PESTEL analysis, and the t-test was used in the quantitative section. Qualitative analysis showed that agricultural cooperatives in Sarab suffer from unstable structural support, a weak economic situation (lack of capital, market problems), low social trust and cooperation, little benefit from new technologies, and environmental challenges without a specific plan. The laws related to cooperatives are also considered complex and unenforceable. For the development of these cooperatives, integrated policymaking, strengthening social capital, access to technology and new markets, a clear legal structure, and attention to the environment are necessary. The one-sample t-test showed that structural, economic, and some social components are significant, but institutional and support weaknesses are evident.