For years, Italian bank Credito Emiliano (Credem) has accepted Parmigiano Reggiano as loan collateral offered to producers of the Protected Designation of Origin (PDO) cheese. According to the Harvard Business School case study, if producers are unable to repay their loans, or if prices fall and the value of the collateral does not support the outstanding debt, Credem may sell the cheese it holds to cover any potential loss.

Parmigiano Reggiano sold in the EU must be produced in and using milk from a handful of areas – Parma, Reggio, Emilia, Modena and parts of Mantua and Bologna.The hard cheese, made using raw cow’s milk, must be matured for at least 12 months.

According to the Harvard case study, Credem is investigating whether its Parmigiano Reggiano model can be applied to other agricultural products.