*Animal farming has intensified in Bulgaria and Romania (both are middle-income countries) in recent years. Many more animals are now reared in large farms that use intensive production practices, while the number of small farms have dwindled.*This report/Guidance Memo charts the significant shift toward intensification, and explains why its key driver is the EU Common Agricultural Policy (CAP). CAP payments and subsidies and their unequal distribution to recipients have triggered deep structural changes in the animal agriculture sector in the EU, chief of which is the livestock industry taking advantage of the favorable climate and generous handouts to intensify production.*At the same time EU animal welfare regulations are not robustly en...