Commission approves €90 million Italian state aid scheme to foster primary agricultural production, processing and marketing of agricultural products

The European Commission has approved, under EU state aid rules, a €90 million Italian scheme to foster primary agricultural production, processing and marketing of agricultural products.

The scheme aims at re-organising agricultural supply chains at local level to create better market relations and advantages for the agricultural sector in terms of income, resilience, sustainability, and innovation. In particular, the scheme will allow companies located in a certain geographical area (so-called ‘food district') to identify their needs and be supported based on a ‘district contract' with the Italian Ministry for Agriculture, Food Sovereignty and Forestry.

Under the scheme, which will run until 31 December 2029, the aid will take the form of direct grants and subsidised services. In particular, the scheme will provide support for investments, while allowing producers to participate in quality schemes, knowledge and information actions, advisory services, as well as cooperation and promotion measures.

The scheme is expected to benefit between 250 and 300 beneficiaries, 99% of which should be micro, small and medium-sized enterprises (SMEs).  

The Commission assessed the scheme under EU state aid rules, in particular Article 107(3)(c) of the Treaty of the Functioning of the EU, which allows member states to support the development of certain economic activities under certain conditions, and the Guidelines for state aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is necessary and appropriate to encourage the relevant investments and actions to support companies active in the agricultural sector at a local level. Furthermore, the Commission found that the scheme is proportionate as it is limited to the minimum necessary and will have a limited impact on competition and trade between member states. On this basis, the Commission approved the Italian scheme under EU state aid rules.

The non-confidential version of the decision will be made available under the case number SA.116125 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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