The European Commission has approved under EU State aid rules an €18.2 million measure to support an investment project in Italy's 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 in Italy 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.

It is expected this investment will "strengthen the dairy sector in Alto Adige by increasing demand for milk from local farmers".

It will also "enhance the use of the by-product whey, thereby contributing to the circular economy and sustainable production".

State aid

The aid will take the form of a direct grant, the commission said.

The commission assessed the measure under EU State aid rules, and 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," the commission said.

"On this basis, the commission approved the Italian measure under EU State aid rules."