One of the most important outcomes of the transition from socialist to market economies has been the liberalisation of state-controlled exchange and distribution channels. This process has occurred in the livestock sector of Turkmenistan over the second part of the 1990s. The state has not yet surrendered complete control over this sector, but there are signs that a vigorous private sector is taking over the purchase, processing, retail and export of livestock products. In contrast, state marketing systems are now generally dysfunctional and not commercially oriented.