Dramatic changes have occurred in Central and Eastern Europe and in the former Soviet Union since the Berlin Wall fell in 1989 and the Soviet Union disintegrated in 2001. Profound economic and political transitions have occurred in these countries, with major implications for their food and agricultural sectors. Most of these countries heavily subsidized their agricultural sectors, and the state sector accounted for a major portion of agricultural production. The reform agenda in these countries has included transformation of collective agriculture to individual farms, establishment of functioning markets, reductions in subsidies, and adjustments in domestic prices toward world market prices.

The transition process has been anything but smooth. During the years immediately after the disintegration of the Soviet Union, withdrawal of agricultural subsidies to consumers and producers along with a collapse of traditional marketing links within the socialist system led to a chaotic economic situation. The food and agricultural sector in the transition economies has since recovered but to varying degrees. At one end of spectrum are the eight transition economies that joined the European Union in 2004, including Poland, the Czech Republic, Hungary, and Slovakia. At the other end are countries such as Russia, Ukraine, and Belarus, where the food and agricultural sector continues to struggle.