The price of Parmigiano Reggiano PDO cheese has fallen considerably in recent months decreasing by almost 40% compared to 2019. The consequent contraction in profit margins is worrying producers that, in the past years, have experienced a good period both for production and for quotations.
In 2019 the average annual quotation was in fact equal to 10.75 euros per kg, and then fell sharply below 10 euros as early as October – when Trump adminitration’s additional duties were announced – and now it has reached around 7.20 euros per kg.
THE REASONS BEHIND THE FALL IN PRICES
There are many reasons behind the price collapse, from the reduction of export sales to the closure of the Horeca channel due above all to the pandemic lockdown period. The drop particularly concerns the twelve-month aged product that has been purchased by wholesalers who, having a pessimistic view of the market in the near future, made the prices of the product fall.
Parmigiano Reggiano PDO protection Consortium will buy 320,000 cheese wheels from its 335 dairies in order to rebalance the market. The products will be stored in warehouses, left to mature longer and progressively re-entered the market when it will be possible to obtain a more adequate remuneration.
THE PARMIGIANO REGGIANO PDO CONSORTIUM’S ACTIONS
The Consortium’s withdrawal of cheese wheels in order to raise prices had already happened in 2014-2015. Now the Consortium will also further reduce production quotas that have been set for the next three years.
“Even though sales in the Horeca channel and abroad have fallen sharply in recent months, we still had great satisfaction in the large-scale distribution channel. In fact, in May sales grew by over 30%. I’m confident: we’re taking effective measures that will allow us to close this anomalous year by consolidating the turnover of 2019” says the president of the Parmigiano Reggiano PDO Consortium, Nicola Bertinelli.