Interview with Nicola Bertinelli, President Parmigiano Reggiano Consortium

Interview with Nicola Bertinelli, President Parmigiano Reggiano Consortium

 

The Parmigiano Reggiano Consortium dates back to 1928. Can you describe the evolution of its mission and its main priorities?

Firstly, I would like to highlight that Parmigiano-Reggiano cheese has about a thousand years of history. About 91 years ago, 28 traditional cheese producers, had to face a crisis in the milk and cheese industry in 1930s, especially 1931 and 1932. These producers decided to join forces with a principle that collected action would enable them to do something that they could never do alone. Parmigiano-Reggiano cheese was founded in the province of Parma. Officially, on July 27, 1934, the Parmigiano-Reggiano cheese consortium was born.

Initially, the goal was to protect the name because the world was already talking about Parmesan cheese made by Italian citizens and migrants who went to other countries. They produced the cheese because they could not find the product at home. They were always trying to reproduce in a way that was not equivalent. In 1938, the 28 producers attended the Expo in New York to promote the original product made in the provinces of Parma and Reggio and it developed into a success story. Ten years later, the consortium had two 2,700 members whose main aim is to protect the products. The Parmigiano-Reggiano consortium has always had an influential and important role in clarifying as to how the regions would be connected to and perceived by the world. The geographical indications were much more than a product, but they were a tool to allow the territories to development. We have followed the path of geographical indications in the European Union, especially since the 1951 Stresa Conference, which marked the first European regulation on geographical indications. These products were recognized in Europe for the first time in 1992, especially in northern Europe, where there were few geographical indications.

Between 1992 and 2024, the attitude has radically changed. In 2024, almost €90 billion in Europe were linked to geographical indication products and that’s only mentioning direct invoicing — the amount is much greater if we include the indirect too. When we think of tourism, we consider the economic value of tourism generated by geographical indications. The consortium has progressively become one of the engines of territorial development. It was also the initiator of many of these regulations in the EU. Today, the consortium is the hub of all the stakeholders who can draw value from geographical indications.

We bring together the producers of Parmigiano Reggiano, the milk producers, the packers, the affineurs, the distribution chains, the banks, the consumers and all the stakeholders with a direct or indirect interest in Parmigiano Reggiano. The Consortium provides a platform for everyone to share in this great project.

 

What are the main concerns with the protection of the PDO at the global level and main concerns regarding intellectual property and imitations?

We work a lot from a regulatory point of view because the denominations of origin are protected. However, when the system of geographical indications lies within the EU, the level of protection is certainly very high. Today, in the EU, it is very difficult to go into retail and find products that are not the original Parmigiano Reggiano denomination. Since 2008, the denomination can only be used on the original product. Outside the EU, the situation is different. There are places in the world where the EU has made bilateral and free trade agreements and, in those cases, the protection of denominations and geographical indications is always addressed. For example, the agreements with Japan, New Zealand and Mercosur, the South American trade bloc, if ratified by the EU and Italy, will ensure a high level of protection for the denominations.

There are countries where the EU has not drawn up these agreements and the situation is more complicated. The US is an example because, while the name Parmigiano Reggiano is a trademark, names that evoke Parmigiano Reggiano such as Parmesan, are free to use and not protected. The Consortium is trying to make Americans understand that Parmigiano Reggiano is something different from Parmesan with an Italian flag on the label, or even cheese made in Wisconsin with the image of the Colosseum or the Tower of Pisa. We invest significant financial resources in the US to make the mass market aware that Parmigiano Reggiano is not Parmesan. For example, this year we started a collaboration with the New York Jets, the American football team from New York City. An Italian company has never undertaken such an initiative. We are also working on brand awareness in our marketing of the original Parmigiano Reggiano.

We try to protect ourselves from a legal point of view, working at all levels, to integrate this into free trade agreements. We have surveillance activities such as watchdogs who monitor the retail sector to flag any incorrect practices. In the EU, we are sometimes criticized for not performing well in the food service and hotel, restaurant and catering sectors. Often, we have seen that the original product is not used in many restaurants. For this reason, we are investing more in strengthening the monitoring and enforcementchannel.

 

What is the importance of the US market and can you quantify the results of your recent participation in the Summer Fancy Food Show in New York?

The US alone accounts for a quarter of the international consumption of Parmigiano Reggiano. The US market has the greatest growth potential because Americans love Italian food and Italy itself. Currently, we hold only 8% of the hard cheese market. On store shelves, Parmigiano Reggiano sells at twice the price of Parmesan, therefore consumers who buy Parmigiano Reggiano in the US know they have a 90% alternative that costs half as much. On April 2, President Trump threatened to impose tariffs of about 10% on all imports from the EU and we were concerned because we thought the demand for our cheese would collapse. In the end, tariffs did not prove as damaging as expected. Following the September 5 agreement with the President’s office and the late-July agreement between Ursula von der Leyen and Trump in Scotland, European goods were all subject to a flat 15% tariff, which is exactly what Parmigiano Reggiano has been paying since 1964, so we continue to pay what we always have.

We are, however, more concerned about the strength of the dollar and inflation in the United States. To deal with these challenges, we have doubled our investments in the US. If more people understood that Parmigiano Reggiano is not Parmesan, we would have a much larger market share. On July 27, 2024, exactly 90 years after the creation of the Consortium, we opened the Parmigiano Reggiano US Corporation. This allows us to conduct surveillance activities in American stores. We have often observed that the product is not managed appropriately. Soon, we will train 400 store managers so that they can handle the product correctly. We are also conducting research with American universities to design packaging that is more useful and functional for the American lifestyle. We are carrying out B2C initiatives with American companies. Our goal is to bring value to the US market — not just cheese. American consumers do not buy a wheel of cheese, nor even a half-wheel, but rather by the piece. There is an entire industry that imports the wheels and then processes them to deliver the final product to the American consumer.

The difference is in terms of taste, production and the ageing process. A Parmigiano Reggiano is sold in the United States usually after 24 months of ageing. We also have 30, 36 and 40 months of ageing. The product is linked to our identity and territory. It is similar to talking about Serrano, as not just a ham. The difference is not only in taste, but also in the culture behind it. There is a desire to visit the production site. I think this is really the distinctive element.

Parmigiano Reggiano is much more than a piece of cheese that needs to be grated. Parmesan is a piece of hard cheese that needs to be grated, but Parmigiano Reggiano is much more than that. If you visit our region, you actually go to the cheese factory and talk to the cheesemakers while admiring the amazing scenery of mountains and hills. Our marketing strategy is to get people to fall in love with Parmigiano Reggiano brand all over the world. We want it to be an iconic brand globally. In Italy, only 20% of families consider it a love brand, because we also have Grana Padano, another excellent quality of hard cheese.Many Italian families may buy one or the other depending on the price.

 

What does the recognition of Parmigiano Reggiano as a ‘mountain product’ under EU regulations mean and what is the impact of this status on the community?

It has had a very important impact on the community. Parmigiano Reggiano was the only project within the EU that has maintained and increased its mountain-area production. The production in mountain areas is 21.7% of Parmigiano Reggiano, with 884,000 thousand wheels. Compared to 2016, it has increased by 15.5%. The milk production has increased by almost 12% since 2016. We work with 84 farms in the mountains out of 291. A very important fact is that the average age of a dairy farmer in the Parmigiano Reggiano area is 52 years old. In the mountains, it is 42 years old. Our policy is to retain young people who have stayed in their family or relatives’ farms. We want to help them develop. This has a huge social value, we are proud of this.

The production areas of Parmigiano Reggiano cover Parma, Reggio Emilia, Modena, Bologna and a small piece of Mantua. The A1 motorway connects Parma with Bologna. If it were not for the presence of  Parmigiano Reggiano, this land would not be cultivated — there is no economic reason. We are contributing to the livelihood of the milk producers, enabling them to remain in this area. If there were not people living in these areas, there would be nothing happening in these mountains. Therefore, as you can see, the mountain project is both an economic and social value-added initiative.

 

Sustainability and traceability of origin are fundamental priorities for global consumers. How will these guide your actions in the coming years?

Sustainability must certainly be environmental in nature. In this regard, the consortium is committed to making these investments to create a comprehensive sphere. We are aiming for the goal of including photovoltaic panels in the Parmigiano Reggiano dairy farms. We are working so that the by-products from the farms can be used in nuclear plants to produce electricity and so that larger companies can use more electricity efficiently. We want the farms to electrify their operations, meaning that the machines used on the farms no longer run on diesel or gasoline. We are working on this so that they use the electricity produced on-site. Tractors and trucks that collect milk would be able to run on farm-produced biomethane rather than electricity. This is a sustainable park concept and our slogan.

It is also very important to address economic sustainability and social sustainability, because if there is no profitability, the protections cannot be implemented. If there are no businesses, value cannot be created for the community. In many mountain areas, towns exist because there is a dairy producing Parmigiano Reggiano. Without that economic activity, there would be no tobacconist, laundry or bar. All of thesebusinesses support a community. This is why we approach sustainability with a sequence. There must be economic sustainability which enables social sustainability. When the community can take care of its environment, it will lead to environmental sustainability. This is how we approach sustainability. We also try to make people understand that there is sustainability for the future. Without Parmigiano Reggiano, these lands would have no future. In terms of sustainability, I would like to refer to the word “durability”. It conveys much more clearly the idea that something must be something lasting and durable.

 

What are your priorities regarding training and development, with particular attention to generational renewal?

This is a very important question. The production of Parmigiano Reggiano is not at risk due to a potential lack of milk producers, but rather because there will no longer be people available to make it. I would like to touch on a few pillars. Firstly, we need to provide training to create curiosity and encourage more knowledge in this area. Secondly, it must pay enough to live on. Lastly, I believe that it is a cultural issue. If the job does not give you recognition, the economic and social aspects are not enough.

When we speak about Parmigiano Reggiano, it is about our Italian heritage. We need to take this seriously to give work in this sector more recognition. We need to be as proud of it as we are about the Colosseum and the Sistine Chapel. We have to work on people’s basic education if we want to create awareness and contribute to the change. The Consortium is part of various institutions, some of which offer a variety of courses and training programs, including certified degree courses. We are also very active with the plan to provide local products in schools, so that children know what an Italian tradition and local product is. I cannot stress enough how important this is for the future of Parmigiano Reggiano.

 

What is your final message for the readers of USA Today?

I would like to convey a message about the importance of products like Parmigiano Reggiano and the significance of geographical indications. A geographical indication can be more than just a product because it is tied culturally and attractively to a specific territory or place. This means that, if well managed and well administered, geographical indications can bring substantial value to territories. This value goes beyond what is generated for the stakeholders in the supply chain producing the product. It can go beyond the cheese maker and the milk producer. In Italy, tourism accounts for around 15% of the GDP. One foreign tourist in three, about 35%, plans their itinerary in Italy not simply to go to the seaside or to visit the main art cities, but based on food and wine. For this reason, products like Parmigiano Reggiano and other geographically distinctive products can be a strong driver of attraction for both people and investment in a territory.

However, to reach a territory, proper infrastructure is required. We need to consider transportation hubs in cities, airports and connections. Once someone arrives at a high-speed station, there must be mobility options to reach other locations. A territory must also have accommodation facilities such as hotels that allow visitors to stay. These hotels must align with modern lifestyles. Restaurants must be able to highlight and enhance all these qualities. The products can be engines not just for rural developmentbut also for territorial development. Therefore,policy at all levels both national and local, must recognize that through these products it is possible to generatesignificant value, development and employment, in a way that is highly consistent with Italy’s distinctiveness in the world. I believe that it is a major national projectand responsibility to take charge and make coherent choices for global citizens to enjoy all that our land has to offer.

 

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