The study investigated the survival strategies of producer cooperatives in Uganda, by using Nyakatonzi Growers’ Cooperative Union as a case study. The study explored the role of diversification; examined members’ participated in the union activities; assessed the role of cooperative leadership and management; and established the extent to which the financial and asset base facilitated the survival of the cooperative union. A case study research design combining both qualitative and quantitative data collection methods was used. Data was collected in January 2013 using a questionnaire, interview techniques and observation with 100 respondents from four primary cooperative societies (PCSs) affiliated to Nyakatonzi Growers’ Cooperative Union. Data was analysed using SPSS16. The study established that diversification played a significant role in the survival of the cooperative union. The board of directors made union decisions through the top-bottom approach, ensured strategic planning, and supervised management and mobilised resources. Nonetheless, a competent, skilled and innovative management empowered through capacity-building programmes ran the union and access to information and assets enhanced production. The study recommends that producer cooperatives should pursue diversification through a variety of commodities and value addition for higher bargaining power in the market. Uganda Cooperative Alliance (UCA) should strengthen the growth of PCSs through capacity-building and empowerment programmes for effective members’ participation. The government also should spearhead awareness drives about cooperatives, establish a framework for impact assessment, monitoring and evaluation (M&E) and review the status of existing cooperatives.