The consequences of integration of the agricultural and food sectors between the Central and Eastern European candidate countries and the EU are investigated in this paper. The analysis indicates substantial structural problems in the agricultural sector of most Central European countries (CECs). In most of these countries, the transition process resulted in a highly frag-mented farm structure. This impedes the efficient use of the given production factors, at least in the medium and long term. Furthermore, the competitiveness of both sectors is hampered by low investments. Additional problems in the downstream sector are the result of signifi-cant excess capacities and insufficient product and process qualities. Delays and failures in creating and developing institutions has led to a reinforcement of these problems and is an important reason why these deficits are very persistent. EU-accession of the CECs will not result in a significant increase in production of agriculture and the food processing industry. This is confirmed by simulation results presented in this paper. Moreover, the analysis shows that farmers including land owners in CECs are likely to benefit from the implementation of the Common Agricultural Policy of the EU at about 6,8 billion Euro per annum. In contrast, consumers may suffer a relatively small annual welfare loss of about 0,4 billion Euro. The CAP expenditures financed by the EU-budget amount up to 7,5 billion Euro per year.