Extreme heat that has gripped Europe for weeks has not only caused fires and destroyed thousands of hectares, but has also created problems for “cheese banks” in Italy.
The local bank Credito Emiliano, known as Credem, allows dairy farms to use wheels of Parmigiano-Reggiano cheese as collateral for loans. However, high temperatures have begun to affect the quality of the products stored for years in special warehouses. The bank stores more than half a million wheels of traditional cheese from northern Italy underground, with a total value of over 300 million euros, according to Fortune. Record temperatures recorded during July have put the products stored in the Emilia-Romagna region at risk.
Due to the heat, energy consumption has increased by approximately 30%, forcing the bank to modernize cooling systems, enhance insulation, and increase renewable energy production capacities. The Italian bank has been accepting cheese wheels as collateral since the 1950s.
Parmigiano-Reggiano requires up to 36 months to mature, so it is difficult for small family businesses to maintain such stocks for a long time without making a profit. That is why the bank provides producers with funds even before the cheese is sold. After receiving the products from the producers, the subsidiaries of Credem age them in two warehouses in Reggio Emilia and Modena. Clients typically receive an advance of 60% to 80% of the value of each wheel.
In recent years, the lending system has expanded: now farmers can use cheese wheels as collateral even before the products leave their own farms. This has allowed the bank to increase lending volumes.
Heat threatens more than just cheese
Italy produces about 4 million wheels of Parmigiano-Reggiano per year, while cheese banks store approximately 500,000 wheels, Giancarlo Ravanetti, head of one of the Italian warehouses, told CNN.
The Parmigiano-Reggiano industry, whose name has the status of a protected designation of origin (PDO) and can only be used for cheeses traditionally produced in the provinces of Parma, Reggio Emilia, Modena, Mantua, and Bologna, is valued at 4.7 billion dollars and includes approximately 300 certified cheese factories.
Experts warn that the heat wave is affecting not only cheese production but also dairy farming, vineyards, and olive groves. Due to the intense heat, cows rest more and eat less, which can reduce milk production by up to 10%. More frequent, longer, and more intense periods of high temperatures affect both the quantity and quality of milk, ultimately increasing producers’ costs.
A similar situation is observed in Italian vineyards. Climate change has shortened the grape harvest period, forcing producers to make decisions faster. In Franciacorta, a prestigious wine region of Lombardy where sparkling wines are produced, the 2026 harvest began on July 30 — the earliest recorded date. It is about 10 days earlier than last year and about a month earlier than three decades ago.
In Sicily, the grape harvest has turned into what winemakers describe as a “hundred-day harvest season” in different microclimatic zones of the island. Producers adjust the harvest time for each variety to stay ahead of the heat.
Source: La Nación
