2017 saw 3,650,563 wheels produced, a 2.2 billion-euro turnover, and share of exports at 38% with the United Kingdom as the 4th largest export market for Parmigiano Reggiano 

London, 26 April 2018 – The past year was a record one for Parmigiano Reggiano production, as it saw a total increase of 5.2% on the previous year. More than 3.65 million wheels of cheese (about 147,000 tons) were produced in 2017, which represents the highest peak in the long history of Parmigiano Reggiano. As the 4th largest export market, the United Kingdom contributed 6,163 tons to a 3.9% year over year increase in exports and remains a key market for the sector.

During a recent press conference at the Exchange of Milan, the financial data of the Parmigiano Reggiano sector was presented by the President of the Consortium, Nicola Bertinelli, the Vice President, Guglielmo Garagnani, and the Deputy Minister for Agricultural, Food and Forestry Policies, Andrea Olivero.

In the last three years, production rose from 3.3 million to 3.65 million wheels, a 10% increase, and there was a 2.2-billion-euro turnover for the Protected Designation of Origin product, which is increasingly expanding abroad. Parmigiano Reggiano is also enjoying a very good period with regards to price. In 2016, the cost per kg was 8.60 euro, however in 2017, the average price stood at 9.81 euro. This is a 14% increase (source: Borsa Comprensoriale Parma bulletins).

Italy accounts for 62% of the Parmigiano Reggiano market, while the export share is 38% (up 3.9%). France is the largest export market (9,800 tons), followed by Germany (9,460 tons), United States (9,075 tons), United Kingdom (6,163 tons) and Canada (2,380 tons). While exports to France, Germany, Canada and the United Kingdom have significantly increased (by respectively 11.3%, 3.2%, 8.1%, and 6.6%), exports to the United States have decreased (-9.3%) due to the euro/dollar rate and competition with similar products. On the other hand, exports to Canada have increased, thus confirming the expected opportunities for development thanks to the CETA agreements.

The Consortium also discussed the actions they will undertake to guide its growth in 2018. One challenge will be positioning the product in the market at a profitable price: a further growth in production is expected in 2018, bringing the number of wheels to over 3.7 million. In order to increase demand in Italy and abroad, the Consortium's budget includes a 20-million-euro investment in communication (12 million in Italy and 8 million abroad): 7 million more than in the previous year.

The strategy of the Consortium rests on four pillars: distinctiveness of the product; increase in exports; fighting against counterfeits; and the development of direct sales from dairy farms.

The first, and most important one, concerns the distinctiveness of product. Nicola Bertinelli, President of the Parmigiano Reggiano Consortium, says “3.5 million families are very loyal to Parmigiano Reggiano, 3.9 million to Grana Padano, and 14 million families buy either without distinction. To increase sales, we have implemented brand repositioning actions, strengthening communication with the objective of conveying to consumers the benefits that make Parmigiano Reggiano PDO a unique cheese in the world. It is a product that stands out from the competition because of the selection of the best, all-natural products, the complete absence of preservatives and additives, and faithfulness to the same recipe for a thousand years.”

The second pillar is that of exports. The Consortium has increased investments abroad both in marketing and in public relations, creating a network of press offices in target markets.  Exports are one of the main ways of stimulating production. The Consortium has set itself the ambitious goal of growing by 2-3% a year and of reaching the target of 1.6 million exported wheels by 2021.

The third one is the fight against counterfeiting, which in practical terms translates into greater transparency, to the benefit of all consumers. Since 2017, the Consortium has strengthened its monitoring programmes, which now cover 100% of grating companies and portioning labs, in order to guarantee to consumers the authenticity of the product. 

The fourth pillar is the Consortium's support of direct sales from dairy farms. Dairies need to have greater and more unmediated access to the market, not just through farm shops, but also through online sales, direct relationships with small supermarket chains, and the food service industry, including hotels, restaurants and cafés. The goal is to increase the share of direct sales up to a third of total production.

Interestingly, in order to meet different market needs, as many as 137 dairies out of 335 hold other certifications in addition to the PDO one. These certifications include Organic Parmigiano Reggiano, White Cow of Modena, Red Cow of Reggio, Brown Cow, the Mountain Product, Kosher, Halal, and the very long, so-called “meditation” maturation. The objective of the Consortium is to promote these new segments as well as direct sales from dairy farms, as this is a market that is less affected by the general economic situation and yields returns for producers.

“Parmigiano Reggiano had a record year in terms of production, prices and exports. The challenge now is to position the product by opening new market spaces. In order to achieve our objectives, we ask the Government for concrete help, both in Italy - where stricter penalties are needed for those who do not comply with the rules - and abroad, in fighting counterfeit products and properly defining the details of bilateral agreements,” said Nicola Bertinelli, President of the Parmigiano Reggiano Consortium.

The Deputy Minister, Andrea Olivero, added “The success of Parmigiano Reggiano naturally makes us happy and strengthens the partnership between institutions and the world of entrepreneurship; we celebrate the achievements of a PDO product that is widely recognized and awarded by consumers in Italy and abroad, but also acknowledge the work done by the entire production chain in conveying the intrinsic characteristics of an Italian product of excellence. The Government remains committed to fighting counterfeit products and ensuring that geographical indications become a global value”.

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About Parmigiano Reggiano

Parmigiano Reggiano cheese, known as the King of Cheeses, is one of the world's oldest and richest cheeses - still produced today as it was nine centuries ago. It's the only cheese that has such an extensive maturation which develops its delicious flavour and unique characteristics. 

The use of raw milk and the richness of natural ingredients make this cheese a superior product. A long ageing period is fundamental in building the aromas and texture of Parmigiano Reggiano. Such complexity is achieved in a totally natural way, without any additives, making Parmigiano Reggiano 100% natural, easy to digest and high in calcium. The minimum maturation time is at least 12 months, but only when it reaches approximately 24 months of age, is at its best. Ageing can continue up to 36 months or more, during which time the cheese develops its flavour, texture and digestibility. At the end of the minimum period of ageing, an expert from the Consortium examines each cheese wheel one by one. If a wheel passes inspection and meets the requirements of the P.D.O. (Protected Designation of Origin), it is fire-branded with an oval mark that reads “Parmigiano Reggiano Consorzio Tutela.” On the contrary, the identifying marks and the dotted inscriptions are removed from any cheeses which do not meet the requirements.

Within the European Union, Parmigiano Reggiano is the only hard cheese that can legally be called Parmesan. In many areas outside of Europe, the name has become genericized and is used by a number of hard Italian-style grating cheeses even if Parmesan means “from Parma”. However, Parmigiano Reggiano is “the only Parmesan” as it is made in a restricted geographic area using stringently defined methods and according to P.D.O. regulation.

Parmigiano Reggiano is a P.D.O. product. P.D.O. products are defined and protected by European Union law in order to defend the reputation of regional foods. This mark ensures that Parmigiano Reggiano can only be produced in Parma, Reggio Emilia, Modena, Bologna to the west of the Reno River and Mantua to the east of the Po River.

Parmigiano Reggiano by the numbers

• 13.5 litres of milk make 1 kg of cheese
• 24 months is the average ageing of the wheels, with 12 months being the minimum
• 40.5 kg is the weight of a wheel
• 520 litres of milk to make one wheel
• 2,893 farms supplying milk to dairies
• 335 dairies

For more information, please visit www.parmigianoreggiano.com

If you would like to receive recipes featuring Parmigiano Reggiano, please contact Georgie Hackett at +44 (0)20 7389 9404 or email g.hackett@brand-dialogue.co.uk.