Italian public investment in the agri-food sector jumped 46% to 16.8 billion euros between 2023 and 2025, according to the first Agri-Food Policy Observatory by TEHA Group. This funding, combined with structural funds, has pushed the sector’s contribution to the national GDP to a 20-year record of 4.2%.
For over a decade, Italy’s agricultural support was a flatline. Between 2010 and 2022, annual public funding stalled at an average of 12.4 billion euros. That era of stagnation ended with a sharp pivot toward what the government calls “food sovereignty.”
The current investment surge isn’t just a budget increase; it is a structural realignment. By injecting 16.8 billion euros in targeted funds on top of 38.5 billion euros in structural funding, the state has transformed agri-food into Italy’s leading productive sector. The economic ripple effect is massive. The direct value added to the sector is estimated at 87 billion euros, while the broader impact on employment, income, and consumption is projected to reach 246 billion euros in the medium-to-long term.
The 16.8 Billion Euro Shift
The scale of this funding shift is best understood through the lens of the PNRR (National Recovery and Resilience Plan). Initial allocations of 3.7 billion euros were aggressively expanded to 8.9 billion euros—a 141% increase. Of that amount, 65% has already been committed across more than 35,000 projects.
This isn’t a blanket subsidy. The government has divided the capital into seven lines of intervention designed to modernize the supply chain and protect the “Made in Italy” brand from “Italian sounding” imitations.
| Investment Focus | Funding Allocated |
|---|---|
| Strategic Supply Chain Capacity | 6.1 billion euros |
| Technological Innovation & Energy Autonomy | 5.6 billion euros |
| Consumption Support & Quality Food | 3.6 billion euros |
| Food Safety & Phytosanitary Protection | 1.1 billion euros |
| Youth Entrepreneurship | 0.4 billion euros |
| Made in Italy Promotion | Not specified |
| EU Regulatory Alignment | Not specified |
The heavy weighting toward strategic chains and innovation suggests a move away from simple survival grants toward industrial scaling. The goal is a digital, sustainable model that can withstand global shocks.
The Funding Gap: Italy and the EU vs. the United States
The drive for “strategic autonomy” is born from a stark realization: Europe is outspent. Valerio De Molli, CEO of TEHA Group, highlighted a significant divide in how superpowers support their farmers.
“From 2010 to 2022, public support for agriculture remained substantially unchanged, with an annual average that did not exceed 12.
Valerio De Molli, CEO of TEHA Group
The disparity is most evident when comparing the U.S. Department of Agriculture (USDA) to the EU’s Common Agricultural Policy (CAP). Despite having comparable economic sizes—roughly 565 billion dollars for the U.S. and 532 billion euros for the EU—the levels of support are worlds apart. The USDA budget represents 40.1% of U.S. agricultural turnover, while the CAP provides only 10.4% for the EU.
For Italy, this gap makes national intervention a necessity rather than a luxury. Without aggressive domestic funding, Italian producers face a competitive disadvantage against heavily subsidized American counterparts.
Export Records and the 4.2% GDP Peak
The data suggests the “cure” is working. In 2024, the sector’s overall turnover hit 269.9 billion euros, a 42% increase since 2015. But the real victory is in the global market. Despite the headwinds of U.S. tariffs, Italy achieved a record export of 72.5 billion euros in 2025.
- Global Leader: Pasta and tomato purée shipments.
- Wine: First producer and second largest exporter globally.
- EU Leader: The “Dop economy” (Protected Designation of Origin), generating 20.7 billion euros.
- Cultural Capital: The highest number of UNESCO assets linked to agri-food, capped by the 2025 recognition of Italian cuisine.
This performance has pushed the sector’s weight in the national economy to 4.2% of the GDP, the highest level in two decades. It is no longer just a cultural heritage project; it is a primary economic engine.
Strategic Sovereignty and the Road Ahead
The government’s approach is rooted in a specific philosophy. Minister of Agriculture and Food Sovereignty Francesco Lollobrigida has framed these investments as part of a “strategic vision of the Masaf based on the principle of food sovereignty.”
By focusing on “strategic autonomy,” Italy is attempting to decouple its food security from volatile global dependencies. The 81.6 billion euros in added value currently generated by the sector proves that the transition from a traditional agrarian economy to an industrial powerhouse is well underway.
The next challenge will be maintaining this momentum as the 2023-2025 funding cycle closes. With 67.8 billion euros in benefits already observable in the immediate three-year window, the focus now shifts to the remaining 178 billion euros expected in the medium-to-long term. If Italy can sustain this trajectory, the sector will not only lead the EU in value added but will serve as a blueprint for how a nation can weaponize its culinary heritage for macroeconomic growth.
