The latest trade standoff between China and the European Union threatens to disrupt exports of Italy’s culinary crown jewels, particularly its renowned cheeses. From Parmigiano Reggiano PDO and Grana Padano PDO to Pecorino Romano PDO and Mozzarella di Bufala Campana PDO, Italian dairy exports to China have seen remarkable growth. In 2023, the sector’s exports to China surpassed €80 million.
Beijing recently announced an investigation into subsidies affecting dairy imports from the EU, claiming that domestic industry groups prompted the probe. The inquiry seeks to determine whether subsidies provided by 20 European states, including Italy, comply with World Trade Organization rules.
Coldiretti, the main Italian farmers’ and breeders’ association, warns that Italy risks forfeiting the 35% growth in cheese exports to China achieved in the first five months of 2024. “Beijing’s move turns Italian food into a pawn in broader political and economic disputes, with potential repercussions across Italy’s €590 million agri-food export market to China,” the association said.
A potential imposition of tariffs would hit Italian producers hard. “We will undoubtedly be penalized,” says Stefano Berni, Director of the Grana Padano PDO Consortium. “While France might bear the brunt, China is a growing market for Grana Padano, and any tariffs would set us back.”
Gianni Maoddi, President of the Pecorino Romano PDO Consortium, underscores the stakes: “In the first five months of 2024, our exports to China surged by 45.8%, from 3,000 to 44,000 kilograms. This significant growth could be wiped out.”
“The dairy sector often finds itself in the crosshairs of geopolitical and trade tensions,” notes Gianpiero Calzolari, President of Granarolo, one of Italy’s leading dairy groups. “We’ve seen this before, during the Trump administration and with the Russian embargo. While China is not yet a top market for Italian dairy, it’s rapidly expanding. These new tensions could hinder future growth in a market with vast potential.”