Introduction

Abstract

So precious is the Parmesan cheese produced in and around Parma and Reggio Emilia, Italy, that the local Credito Emiliano bank accepts wheels of the cheese as collateral for loans to dairy owners. In fact, the bank operates two climate-controlled vaults whose shelves brim with more than 400,000 wheels of cheese, valued at roughly $187 million. The bank lends up to 80 percent of the cheese’s value to dairy operators, providing ample financing for dairies to continue production while the cheese finishes two years of aging (Migliaccio and Rotondi, 2009).