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It is a truth universally acknowledged that a person in possession of a wheel of Parmigiano Reggiano must be in want of a bank.
No, that’s not a historically accurate recollection of the first line of Pride and Prejudice, but the sentiment stands nonetheless.
This week, I learnt about the unique cheese economy that exists in Italy — which allows us to heap tonne upon tonne of parmesan onto our ragu — and I can’t stop thinking about it.
I’m calling it The Big Cheese.
Only this amount of Parmigiano Reggiano. Never less. Image: Cassandra Green
For, dear reader, that $17 block of cheese in your fridge is but a morsel of the real story: a $600 million cheese-loaning facility that, like a wine-drunk tourist in Siena, is at risk of perishing due to the soaring temperatures in Italy.
Let me explain.
Parmigiano Reggiano is an incredibly regulated cheese. It must be made only from milk, salt and rennet in specific regions of Italy — including Parma and Modena — and then aged for a minimum of 12 months.
The practice of letting the cheese age created a bit of a conundrum for farmers. They had already paid for the product to be made, but couldn’t reap their Big Cheese profits until it was ready to sell 12 months later.
So, a system was created in the 1950s as a kind of cashflow facility, allowing farmers to secure bank loans using immature wheels of Parmesan as collateral.
Farmers typically receive between 60 and 80 per cent of the cheese’s value upfront, meaning they can make… well… more cheese.
The bank, Credito Emiliano, would issue the loan against the future value of the cheese, knowing it would eventually be sold.
But no, dear reader, this wasn’t done through deeds and paperwork.
The Italian bank actually created specialised vaults where it would store the immature cheese between its manufacture and sale.
The cheese bank. Image: Getty
They are physically looking after the cheese. Glorified babysitters.
This means that, instead of just bank clerks and lawyers, Italian cheese banks hire specialised workers who turn the wheels and ensure the temperature remains stable throughout the cheese’s ageing process.
Each wheel that enters the bank is scanned and logged — like a digital passport — then placed on long wooden shelves where its temperature, humidity and airflow are closely monitored, along with any cracking, swelling or moisture.
The bank’s facility is also of benefit to the farmers, because it consolidates the ageing facilities into one location where all the cheese can mature. This makes it a lot cheaper than if each farmer had to do it themselves.
While the lending has grown over the years and some dairies have brought the care of the cheese in-house, many still use the bank’s storage facilities.
And it’s not for pennies, either.
A wheel of aged Parmigiano Reggiano can sell for more than $1,000 AUD, with the banks holding up to $600 million worth of cheese in total, per news.com.au.
This intricate system has lasted for decades, ensuring our salty, cheesy delight is available year-round without fail.
However, it seems the system is struggling — and climate change is to blame.
Climate change is threatening the cheese. Image: Getty
Soaring temperatures in Italy have been putting strain on the intricate temperature-control systems inside the bank.
Fortune reports that energy consumption rose 30 per cent in the heat, forcing the bank to upgrade its cooling system, boilers and insulation, as well as expand into renewable energy to keep the bank’s overheads down.
With some wheels staying in the facility for three years, that’s three summers of cooling costs before the cheese ever meets our back pockets.
Not to mention that, apparently, climate change also impacts the cows producing the milk, leading to a 10 per cent decrease in total yield during periods of extreme heat.
So the problem isn’t just that the bank has to keep the cheese cool. The cows have to keep producing enough milk to make the cheese in the first place. And if either end of this very elaborate dairy supply chain starts to buckle, the whole thing begins to look a little less financially sound.
All of this is pushing the fragile cheese ecosystem to its limit.
But fear not, dear reader. At present, your Parmigiano Reggiano is not at risk.
CNN reports that the bank’s director confirmed: “This system has operated for more than a century and the bank has never lost a single euro on these loans.”
Which is, frankly, a better track record than most banks can claim.
So, for now, the vaults remain full, the wheels keep turning and the cheese keeps getting older. It seems the Big Cheese is still alright.
At least for now.
Feature image: Cassandra Green/Getty.