Dairy

Sales of Parmigiano Reggiano and Grana Padano PDO jump ahead of tariffs

US consumers and restaurant operators are buying up the two iconic Italian cheese before US duties hit

The storm after the quiet. This nonsense pictures perfectly the actual situation in USA of the two italian cheese, the most famous but even the most affected by new tariffs imposed by president Trump, and follows the self-evident protests of the two consortia.

SALES THROUGH THE ROOF

By the last “International forum on agriculture and food”, at Villa d’Este in Cernobbio on 11th and 12th October, where it has been symbolically set up the “American table after the new tariffs”, Coldiretti showed the results of a research on actual situation in USA of Parmigiano Reggiano and Grana Padano. The study evidenced that, from 4th October, the date where Trump announced the new tariffs with WTO approval, both consumers and caterers are hoarding the two aforementioned products, with a sales increase of 220%. The trend should continue to rise until 18th October, when the new tariffs system had to come into force.

THE NEW TARIFFS

As discussed in a previous article, the duties on italian dairy products, symbolically the “sacrificial victims” of this new system, will triple, from actual 2,15$/kg to 6$/kg. Money-wise, a FTL of Parmigiano Reggiano will cost 80’000$ more, with an increase in shelf price from 40$ to 45$/kg, generating an unavoidable decrease of demand.

THE ITALIAN MINISTER “WE WILL ACT WITH A COMPENSATORY EU FUND”

Arriving in Cernobbio, the Italian Minister for agriculture, Teresa Bellanova voiced her intention to discuss with EU for opening a fund to compensate the loss of italian food industry, aligning her position to the one of Ettore Prandini, president of Coldiretti, that already discussed about this opportunity.

From the stage of the forum, Prandini further added: “ Our primary goal anyway is that this new tariffs won’t never come into force.”

On the same page, the member of European Parliament, Paolo de Castro, who closed the summit with this quote: “Is it written down anywhere that these duties must come into force. As EU we have both the strength and the diplomacy to discuss it with USA. Let’s fight this battle now for bringing home this excellent result.”

During the signing of the “Protocol against the italian sounding” happened during the last Anuga, it has been discussed about the opportunity to withdraw the embargo on Russia, to raise the sale of Parmigiano in a country that might be surely very attractive.

Very interesting is even the valorization of brands and DPO in countries such as China, thanks to the bilateral agreement signed in 2017.

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