This report aligns to the framework ofstructural transformation to identify opportunities fordevelopment in the agriculture sector in the WesternBalkans, while also exploring patterns of trade and factorsfor improving agricultural competitiveness in the region. Tobuild a pathway to modernization and to accelerate theagricultural transformation in the Western Balkans, thelinkages between production, access to markets and tradeflows need to be better understood. Focused strategies andinterventions can improve the competitiveness of theagri-food sector, with wide-ranging impacts on food andnutrition security, export revenues and, ultimately, ondomestic jobs and economic growth. The report provides aregional perspective on the challenges and opportunities forthe sector. It builds on information from a variety ofsources and own analytical work to address these knowledgegaps and support the dialogue on the transformation ofagriculture into a modern and competitive sector in theregion. To the extent possible, depending on dataavailability, country-specific inferences are also providedto guide country-specific directions for improving theproductivity and competitiveness of the sector. The reportexplores the structural dynamics of the sector rather thanEU pre-accession options. There is a wealth of informationon the challenges and opportunities for agriculture in thecontext of EU pre-accession, both in terms of instrumentsand measures, as well as in terms of policy and resources.The value added of this report is the focus on structuraldynamics, productivity patterns and their drivers, as wellas multiplier effects and determinants of agriculturalcompetitiveness in the region. These are explored from theperspective of pathways for change to accelerate thestructural transformation of the sector and increase its competitiveness.