Parmigiano Reggiano: solid growth thanks to 10 years of supply regulation

During the General Assembly of the Parmigiano Reggiano Consortium, the proposed Pre-emptive Agreement for the Parmigiano Reggiano Production Chain - 2026-2031 Regulation Plan was approved, with an allocation of 1.5 million euro for the market crisis fund.

To celebrate 10 years since the introduction of this tool, provided for by EU Regulation 261/2012 to regulate supply and ensure balanced conditions with respect to the capacity of product absorption by domestic and foreign demand, the maximum duration of which was extended to six years with the new EU Regulation 2024/1143, the Assembly also planned a public event entitled '10 years of Supply Regulation Plans: a model for quality supply chains'.

Thanks to planning, claim the Consortium, 'the cyclicality of the market has been mitigated, with quotations stable over time and, on average, at remunerative levels'. Over the past decade, production has recorded a +2.2% per annum, rising from 3.280 million wheels produced in 2013 to 4.014 million in 2024, with an average price that has remained steadily above EUR 10 since 2022. Thanks to the instrument of the 'Parmigiano Reggiano milk quota', the only PDO in Europe that has adopted it, milk producers have become an 'active' part of the supply chain and 'the Consortium has been able to take action with calibrated and effective actions and policies'.
In 10 years, the size of the farmers' holdings has gone from 5,200 quintals per year to almost 8,900, an increase of over 70%. In addition, mountain production has been safeguarded, which in 2023 exceeded 861 thousand wheels (or more than 21% of the total) produced by 83 dairies, an increase of +11% compared to 2016.

The General Assembly of the Parmigiano Reggiano Consortium members resolved on a budget with 51.54 million euro in revenues: 20 million will go to cover the Consortium's operating costs, while the resources allocated to activities will be 31.13 million; investments for marketing and communication aactions will amount to 28.4 million euro, with the aim of supporting the development of demand in Italy and, in particular, abroad. Three hundred thousand euro will be dedicated to 'strengthening market surveillance and legal protection programmes in international markets, with a special focus on non-retail channels in the European Union and the USA'. It is also to support this objective that the Consortium made official on 27 July last (the 90th anniversary of its foundation) the opening of an operating office (corporation) in the United States 'to be more effective in its operations of protection, supervision, promotion, and consumer education'.

"In this assembly we are building the foundations for the future of Parmigiano Reggiano," said President Nicola Bertinelli. Our objective is to give continuity to a market condition that in 2023 and, in particular, 2024 has been stabilised and has reached equilibrium. With anexport share of 43% in 2023, the PDO continues on the path to becoming a truly iconic global brand, with the aim of progressively increasing exports over the next ten years, as abroad represents the future of the PDO. The opportunity to develop winning models for territories based on designations of origin depends on the ability to fight globally against counterfeiting and protectionist measures that hinder them, which must be considered 'unethical' instruments, harmful to products that cannot by their very nature be delocalised from their areas of origin and that represent an asset that guarantees their development and social sustainability'.