Agriculture has considerable potential in Bulgaria. The country has good natural growing conditions on the two-thirds of its area that are not mountainous. Summer crops require irrigation, but water supply has not in the past been a constraint. Historically the country was a significant exporter of agricultural and processed products. Bulgarian exports, however, are now in a poor position to compete in the global economy.
Agriculture continues to be plagued by a past legacy of central planning and state-ownership.
Bulgaria's agricultural trade regime has been characterized by tremendous instability since 1991. Pricing and trade policy during the transition was driven by a preoccupation with providing low-priced domestically produced food for the urban population. Prices of important food products were set by the government until 1998. Bulgaria's tariff schedule shows a strong cascading pattern, with higher tariffs on finished and processed products than on primary products. One implication of cascading is the relatively higher protection it affords to domestic processors, rather than primary producers.