Crisis Update

The Italian government has approved the "bailout", and producers will pull 100,000 wheels of Parmigiano-Reggiano and Grana Padano (a similar though not nearly as amazing cheese) off the market. Hopefully prices will increase and stabilize without excessive consumer fallout.

Parmigiano-Reggiano Crisis!

Parmigiano-Reggiano is, basically, cheese royalty. It is a name-protected cheese from Italy that gives incomparable flavor to any dish to which it is added. That is, assuming you're using real P-R and not parmesan, the pathetic attempt to recreate it domestically.

Parmigiano-Reggiano producers in Italy are currently in dire financial straits. Basically, the wholesale price of Parmigiano-Reggiano has been consistently declining over the past four years, while the costs of milk and other costs to produce the cheese have been consistently rising. At this point, it is now more expensive to produce P-R than it is profitable. Now 30% of producers are on the verge of bankruptcy. This is not noted in the article, but my suspicion is that the producers who are in the most trouble are the smaller, artisanal producers who do not have the size and the financial backing to ride out the crisis.

Producers feel that a supermarket group is helping to dictate lower prices by purchasing the bulk of the P-R produced, and want the Italian government to step in and allow the producers to band together to reduce the output of the cheese in order to raise its prices. This seems an important step to protect what is not only one of the world's greatest cheeses, but also a crucial item of Italian heritage.

I have noticed that some people are complaining about higher prices to them, in the U.S., on Parmigiano-Reggiano. They explain it as the supermarkets trying to make a quick buck. While that may sometimes be the case, it is not inexpensive for any seller in the U.S. to acquire real P-R to sell. We must purchase from importers. These importers are not part of the European supermarket conglomerates and cannot get the same low prices. The price is still low, mind, but not as artificially low. These importers then have to account for shipment, overhead, the cost of spoiled cheese (not insignificant when many freight companies can't take proper care of cheeses), and some profit. This makes the cost to your local store yet higher. Once that is accounted for, your local store has to account for the very same things. Shipment these days is a particularly onerous cost. Supermarkets may be making a profit on cheese. I wouldn't know, because I refuse to buy prepackaged Parmigiano-Reggiano that has lost its character due to shrink-wrap, or American versions of P-R that never had any of that character to begin with. I purchase my cheese from local cheese shops, where I know the cheese is high quality, and has been taken care of. Yes, the price will be somewhat high. But I also know that there are many reasons for that price, none of which are intended to gouge a customer.