Heat Strains Italy’s Cheese Banks

Extreme heat and drought are raising costs and disrupting agricultural production in Italy, particularly in Emilia-Romagna’s Parmigiano Reggiano supply chain.

Credito Emiliano must spend more on cooling facilities that hold more than 500,000 cheese wheels used as loan collateral, while heat-stressed cattle produce less milk. Earlier grape harvests, lower olive-oil production, weaker exports, and potential changes in collateral and credit risk show how climate damage can spread from farms into food businesses and financial systems.