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This paper investigates the issue of regoverning markets in the vertical chain of the dairy sector during the last 15 years. As a consequence of the emergence of multinationals in the food chains, the structure of food wholesaling and retailing has changed considerably. Multinational firms have influenced not only the high number of small- and medium-size retail shops, but food manufacturing firms and agricultural producers as well. We focus on the activities and expansion of supermarkets and the adjustment strategies of small producers. The policy aspects of supporting small producers against super- and hypermarkets and the competitiveness of the dairy sector are also discussed.

This publication forms part of the Regoverning Markets project.