On 14 February 2019, the Italian Competition Authority launched an investigation on the prices of Sardinian sheep’s milk intended for the production of the Pecorino Romano DOP cheese, pursuant to the rules on unfair commercial practices in the agri-food sector.

The proceedings were initiated against the Consorzio per la Tutela del Formaggio Pecorino Romano (Consortium for the Protection of Pecorino Romano Cheese) and thirty-two processing companies members of the consortium - all with registered addresses in Sardinia - and are intended to verify whether these operators have imposed milk sale prices below the average costs of production on farmers, in violation of art. 62 of Legislative Decree 1/ 2012. The practice could in fact be consistent with a situation of significant contractual imbalance between the dairies and the farmers, the latter being the weaker party by reason of the highly perishable nature of milk and the peculiarities in terms of size and organisation of breeding farms.

The investigation will have to be concluded within 120 days.

Rome, 14 February, 2019