Giuseppe Mandara, whose mozzarella is sold by British supermarkets and UK-based online food suppliers, was also accused of producing batches contaminated with ceramic shards from a faulty machine.
The Telegraph reports investigators said his Mandara Group had received significant injections of cash from the Camorra mafia, the organized crime group based in Campania, the region where mozzarella is produced.
Police seized assets worth more than £78 million, including the company.
They said the 56 year-old, who once described himself as the “Armani of mozzarella”, had struck up a secret commercial relationship with the Casalesi clan of the Camorra in the 1980s after he ran into financial difficulties.
The clan is based in and around the town of Casal di Principe, at the heart of a region famous for its mozzarella, which is produced from the milk of domesticated buffalo.
Police said Mr Mandara, who was photographed chomping on a cigar as he was led away by officers, was arrested on suspicion of mafia association and endangering public health. They said two tons of the company’s mozzarella may have been contaminated with minute ceramic fragments from a broken machine.
The company was also accused of passing off ordinary provolone cheese as being of a more superior quality with false labelling. Following news of his arrest, Mr Mandara was expelled from the Consortium for the Promotion of Buffalo Mozzarella after an emergency meeting of its council, which described the allegations as “very serious.”