Commission approves €18.2 million Italian state aid to support investments in the dairy sector

The European Commission has approved, under EU state aid rules, an €18.2 million Italian measure to support an investment project in the dairy sector.

The beneficiary of the measure is Centro Latte Bressanone Societa' Agricola Cooperativa, a dairy farmers' cooperative in Alto Adige (South Tyrol). The goal of the investment project is to expand the cooperative's existing production lines for mozzarella and ricotta, introduce new products such as burrata, and optimize the production cycle while maintaining high quality and environmental sustainability standards. The investment will have a two-fold positive effect. On the one hand, it will strengthen the dairy sector in Alto Adige by increasing demand for milk from local farmers. On the other hand, it will enhance the use of the by-product whey, thereby contributing to the circular economy and sustainable production. The aid will take the form of a direct grant.

The Commission assessed the measure under EU state aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows member states to support the development of certain economic activities under certain conditions, and the 2023 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the measure is necessary and appropriate to achieve the objective pursued, while supporting the objectives of the Common Agricultural Policy. Furthermore, the Commission concluded that the measure is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the Italian measure under EU state aid rules.

The non-confidential version of the decision will be made available under the case number SA.119750 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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