In Emilia-Romagna, northern Italy, vast climate-controlled warehouses store hundreds of thousands of wheels of Parmigiano Reggiano cheese, which slowly age and gain value over time. This unconventional asset serves as a financial lifeline for Italy's dairy industry, as the cheese can be used as collateral for loans from Credem Bank.
The Cheese as Collateral System
Parmigiano Reggiano is a strictly controlled cheese made only in a specific area of Italy using milk, salt, and rennet. Each wheel must be aged for at least 12 months before sale, often 24, 36, or even 40 months. This long waiting period creates cash flow problems for producers, who need to pay farmers and cover costs monthly but only receive income from cheese sales much later. To solve this, Credem Bank accepts cheese wheels as collateral for loans.
Giancarlo Ravanetti, who manages the bank's cheese warehouse business, told CNN that the bank stores about 500,000 of the 4 million wheels produced annually in Italy. The system handles around 2,300,000 wheels per year, worth approximately 325 million euros ($382 million).
Inside the Cheese Vault
When wheels arrive at the warehouse, they are scanned and recorded in a digital system with details like production date and origin. They are then placed on wooden shelves in large storage halls with tightly controlled temperature, humidity, and airflow. Staff check the wheels daily for cracks or damage.
After 12 months, the Parmigiano Reggiano Consortium performs a tapping test, hitting each wheel with a hammer to check its quality. Only wheels that pass are marked with the official fire-branded seal. Once approved, the wheels can be used as loan security. The warehouse guarantees that the cheese exists and is in good condition. Ravanetti says the bank has operated this system for over 100 years without losing money.
The Consortium and Producers
The Parmigiano Reggiano Consortium oversees the entire system, including around 300 producers and more than 2,000 dairy farmers. Spokesperson Fabrizio Raimondi said it represents approximately 50,000 people and a sector with a turnover of over 4 billion euros. The group checks quality, protects the brand, and stops fake products. Most producers work through cooperatives.
Paolo Ganzerli of Granterre, an Italian cheesemaker, noted that while this system is important, it is also financially challenging. Granterre is owned by producer cooperatives, so it must pay farmers quickly even though income from cheese comes much later. He stated, "Without this system of leverage, the world of Parmigiano Reggiano cannot exist."
Rising Costs and Demand
Making the cheese is expensive. Cows must be fed locally grown food, and milk quality varies by area. Costs for feed, energy, transport, and logistics have risen sharply in recent years. In 2025, exports of Parmigiano Reggiano passed domestic sales for the first time, reaching 50.5% of total sales worldwide. International demand rose by 2.7%, with Sweden growing 8.8%, the UK 7.8%, and Spain 2.5%. The United States, the biggest export market, grew 2.3% but remains unstable due to new tariffs.
In Italy, sales fell by 10% in 2025 as higher prices led to reduced purchases, though most households continued buying. Prices rose strongly, with 12-month wheels reaching €13.22/kg and 24-month wheels €15.59/kg. Production increased to 4.19 million wheels.
Ganzerli says the cheese is seen as healthy because it is lactose-free, high in protein, and has no additives. However, if prices rise too much, consumers may switch to cheaper alternatives like Grana Padano. Producers typically receive 60–80% of the value of a wheel upfront by using it as collateral. New blockchain systems now also allow cheese stored at farms to be used for loans. The Consortium is also boosting tourism, aiming to grow visits from 85,000 to 300,000 by 2029.
Parmigiano Reggiano is now a €4 billion industry supported by around 300 dairies, relying on tradition, strict rules, and financial systems working together. In the silent warehouses, the wheels continue to age slowly, turning time and patience into value.
