Heatwave Could Destroy Valuable Parmesan Stocks

An abnormal heatwave in Europe is forcing Italian 'cheese banks' to increase energy consumption to protect hundreds of thousands of Parmesan wheels used as collateral for loans. Credito Emiliano bank has upgraded its cooling systems, but electricity costs have risen by 30%. The heat is also reducing milk production by up to 10%, affecting the cheese industry, viticulture, and olive oil.

An abnormal heatwave in Europe is threatening Italy's cheese economy, valued at $4.7 billion. Unique 'cheese banks'—storage facilities where Parmigiano-Reggiano wheels mature and serve as collateral for loans—are forced to spend more energy on cooling. Credito Emiliano bank, which manages warehouses worth about $350 million, has upgraded its systems, but daily electricity consumption has risen by about 30%, reducing profitability. The practice, dating back to 1953, allows producers to receive an advance of 60-80% of the wheel's value. In total, about 500,000 wheels of cheese are stored. The heat is also reducing milk production by up to 10%, affecting quality. Viticulture and olive oil are also suffering: grape harvesting began earlier, exports fell by 7%, and olive oil production dropped to 270-300 thousand tons against an average of 350 thousand. Economists warn of long-term consequences for supply chains.