This paper deals with the role of geographical indications (GI) in the dairy sector of Italy, with the purpose of highlighting eventual negative dynamics in the adhesion to the GI by the potential operators of Italy. A negative adhesion to the GI circuit shows a “disaffection effect,” and has relevant implications on sustainability on account of the role of a GI in boosting various dimensions of sustainability (economic, social, environmental). In order to verify the presence of a disaffection effect, an empirical analysis of the actors adhering to the GI dairy sector is carried out. Through the collection of secondary sources from official databases, the paper emphasises a negative trend in the adhesion to the GI dairy sector, which also reveals diversified territorial impacts. More precisely, unlike other sectors, the dairy sector reveals negative dynamics in the operators choosing to adhere to the GI circuits. The results of the analysis address some policy issues and solicit policy action to limit the disaffection effect on GI in the dairy sector.