This paper examines the most significant developments and changes that have been occurring over a period of transition in the economy and agriculture. The paper examines the changes that have occurred in Slovene agriculture, the macro-economic framework within which agriculture operates, the functioning of the agricultural markets for staple farm commodities, the structural changes in the private sector and in the relative availability of production resources. Despite agriculture's small contribution to GDP, agricultural production is important in Slovenia, in particular in the poor regions and the rural areas, for alleviating the burden of socio-economic problems of transition and various other discrepancies. The problems of transition were compounded, also, because the economy and agriculture have suffered the loss of the Yugoslav market. With the restructuring of the economy and the re-orientation to European markets the situation is slow returning to normal, agricultural markets are undergoing dynamic changes, production is growing and specialisation is proceeding unhindered.