Italians have long been able to secure loans with wheels of Parmesan — but the vaults where banks store AUD $572 million (approx. $405 million USD) worth of cheese are under strain.
The system dates back to the 1950s and is tailored to the unique cashflow needs of Italian dairy farmers.
One Australian economist calls it an “amazing story” with few parallels elsewhere in the world.
It emerged because farmers who produce young wheels of Parmigiano Reggiano can have a hard time paying their operational expenses.
Under strict regulations, the cheese has to age for at least 12 months before it can be certified and sold.
Instead of applying for a…
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