Italy's Parmigiano Reggiano industry faces climate risks

Italy’s $4.7 billion Parmigiano Reggiano industry is facing economic pressure as extreme heat waves threaten the specialized cheese banks used for agricultural lending. Since 1953, the bank Credito Emiliano (Credem) has accepted young wheels of Parmigiano Reggiano as collateral for loans, allowing small dairy farms to access 60% to 80% of a wheel’s value while the product ages for 12 to 36 months.

Rising temperatures are increasing the costs of maintaining these assets. Credem has reported a roughly 30% increase in daily energy consumption due to the need for enhanced cooling systems, insulation, and renewable power generation to protect the inventory. Additionally, heat stress is impacting milk production; high temperatures cause cattle to eat less, potentially reducing annual milk yields by up to 10%.

While blockchain technology has modernized the sector by allowing farmers to pledge cheese while it remains in their own facilities—effectively doubling lending capacity—the industry remains highly vulnerable to climate-driven operational costs and supply chain disruptions.