Italy's cheese loan system is under strain as extreme heat drives up storage costs
9 Articles
9 Articles
Cheese as credit security, millions of dollars in the vault – and suddenly heat becomes a bank risk. The damage begins long before Parmigiano even lands in the warehouse.
The storage, refining and production of this unique cheese called Parmesan are threatened by repeated heat waves. ...
High temperatures are complicating the production of Parmigiano Reggiano in Italy. With more than 40 degrees, cows produce up to 10% less milk and energy expenditure from some maturation stores has skyrocketed by 30%.
Italy's cheese loan system is under strain as extreme heat drives up storage costs
In Italy, some high-value assets take the form of aging cheese rather than cash or gold. Wheels of Parmigiano Reggiano are kept in climate-controlled warehouses and pledged as collateral for dairy farmers' loans. That unusual financing system is coming under pressure as extreme heat intensifies across Europe, as Fortune reported. What's happening? Because Parmigiano Reggiano cannot be sold until it has aged for at least 12 months — and often 24 …
If you're surprised that wheels of Parmigiano Reggiano cheese have been available for investment in Italy since the 1950s, you'll be even more interested to know that the United States also has its own cheese reserves, and in the past, cheese bars were also issued. Today, however, "cheese banking" has a climate problem. Investments could be melting away any day now. Literally.
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