ABSTRACT

This chapter analyses the transformation of the dairy sector in the post-communist economies of Bulgaria and Russia. It draws on Commons’ institutional framework to focus on path-dependent/path-shaping processes that lead to conflicts about ownership, quality and market power issues. The main domestic and international actors are identified to understand their role in changing the dairy sector. In Russia, the strong market power gained by international businesses left little room for local operators. However, the latter were able to implement different niche strategies. In Bulgaria, domestic actors had to deal with several norms imposed by the European Union. While these norms were considered by some actors as favouring standardisation of milk products to the benefit of the mass-market, other actors used different EU norms to defend their strategy based on the development of a nested market.