Made in Italy: EU clears state aid for South Tyrol’s dairy sector

Brussels – The European Commission has given the green light to the state aid package for the development of the dairy sector in South Tyrol and the local economy. After assessing the case, the EU executive concluded that there were no issues regarding competition or compliance with state aid procedures and approved the €18.2 million measure in the form of a direct grant for the Centro Latte Bressanone Società Agricola Cooperativa, a dairy farmers’ cooperative in the Bolzano province.

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 optimise the production cycle while maintaining high quality and environmental sustainability standards. According to the EU executive, the state aid 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 EU Antitrust Authority considers the notified measure to be “necessary and appropriate to achieve the objective pursued” and also supports the objectives of the Common Agricultural Policy. Furthermore, the 18.2 million euros in aid “is proportionate, as it is limited to the minimum necessary”, and will have a “limited” impact on competition and trade in the EU.

English version by the Translation Service of Withub