This paper examines the changes that have taken place in the economy and agriculture of Bulgaria since the beginning of the transition, in particular the macro-economic developments, the process of agricultural reforms, the liquidation of collectives, the restructuring of upstream and downstream industries, the liberalisation of agricultural prices and the development of agricultural markets. Agricultural reform has been radical, with land returned to previous owners and the liquidation of the collectives. However, support for newly-emerging private farmers has been limited, restructuring of upstream and downstream industries was delayed, and market development logged. This led to a substantial decrease in agricultural production, inefficient operation of markets, and significant decline in consumption.