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The food distribution systems of East European countries are at different stages of development. Hungary′s food processing sector remains in a relatively poor state, but there is a high level of feedback along the food chain and the retail sector is now the strongest in Eastern Europe. Products make their way through the Romanian food chain from agriculture to consumer but with little feedback and the development of few constructive relationships. The retail sector is highly disorganized. Illustrates how in Russia the situation is far worse as the country faces difficult times adapting to a free market system. Concludes that Hungary undoubtedly will lead the way out of recession, with Romania following and Russia lagging behind. Advises that although the major opportunities for new entrants to the food supply chain appear to be in those countries with the best developed economies such as Hungary, the other countries should not be ignored. Burgeoning high income sectors in each market will create the demand for a consistent supply of high‐quality food products.

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