L'Italo-Americano

www.italoamericano.org 20 L'Italo-Americano THURSDAY, SEPTEMBER 7, 2017 SIMONE SCHIAVINATO I t w a s 1 9 5 3 w h e n C r e d i t o Emiliano, a relatively small bank based in the region of Emilia Romagna, started taking wheels of Parmigiano Reggiano as a collateral for small-business loans. Italy had just walked out of a war that had left the country and its people in tatters, but with an enormous desire to start over. These were the years and the l a n d s o f D o n C a m i l l o a n d Peppone's adventures, times at once rougher and more innocent than those where we currently live in. Different times, certain- ly, but one thing was very much t h e s a m e : I t a l i a n e c o n o m y relied, yesterday as today, heavi- ly on the excellence of the coun- try small to medium businesses. Often run by families, our "pic- cole imprese" were and still are the real motor of our economic world, the true representatives of "made in Italy" and its ever- green values of quality, dedica- tion and ethics. S mall bus ines s es are als o important from a cultural point of view, as they are intrinsically tied to the idea of family and all that it implies, from working t o g e t h e r t o r e a c h a c o m m o n goal, to passing on skills and arts to the younger. All of it, imbued in the everlasting idea that by leaving a well oiled and successful business, we'll take care of our children even when we may no longer be around. I n 1 9 5 3 , w e w e r e s a y i n g , Credito Emiliano understood all that. Its CEOs understood the importance of small businesses for Italy's economy and for the country's very own cultural and social background. This is why they decided to help them, doing something unheard of, then: they began accepting cheese as an investment collateral. I t w a s n ' t a l l c h e e s e s , o f course, but the King of them, Parmigiano Reggiano, Emilia Romagna's own gold, every sin- gle wheel worth a small fortune. In spite of it, the very nature of Parmigiano Reggiano produc- tion, yesterday as today, means producers may be in need of some financial support every now and then. Parmigiano becomes more valuable when aged, however, it was, and still is, common for producers to sell less mature wheels to have quicker access to cash. This unfortunately trans- lates into a loss of revenue in the long run. As a bank profoundly rooted in its territory, Credito Emiliano understood the dilem- m a f a c e d b y f a r m e r s a l m o s t every season and decided to act: they were to offer them loans, asking as a guarantee for repay- ment a given amount of cheese w h e e l s . T h e w h e e l s ' v a l u e would increase in time, giving the bank financial insurance. In other words, the sheer market value of the cheese itself was, and still is today, a good reason to accept it as a loan guarantee: in the end, depending on the a g i n g , a w h e e l o f r e a l Parmigiano can be go for any- thing between 900 and 2500 USD. Credito Emiliano's peculiar initiative has not only been now running for more than 60 years, b u t i t h a s e v e n r e c e i v e d t h e attention of the people of the Harvard School of Economics, who dedicated a study to it in 2015. Now, when you dab in the world of economy and finance, and the guys at Harvard decide to write about you, it means you h a v e b e e n d o i n g s o m e t h i n g right. The bank, of course, wouldn't have been accepting wheels of cheese as collateral for invest- ments if it wasn't a financially s o u n d i d e a : P a r m i g i a n o i s a wholesome, well known product, whose price has been constant in t i m e a n d w h o s e p o p u l a r i t y hasn't been waning. However, as mentioned by Fausto Filippi, member of the bank's directive, Credito Emiliano support for local cheese producers goes well beyond economic reasons and it's rooted in that very sense of heritage, tradition and assistance Every single wheel of cheese is worth a small fortune. In spite of it, the very nature of Parmigiano Reggiano production, yesterday as today, means producers may be in need of some financial support every now and then Credito Emiliano and Parmigiano: the curious story of the bank taking cheese as investment collateral to the "made in Italy" I have mentioned in the early para- graphs of this article: "We're a t r a d i t i o n a l i n s t i t u t i o n - s a y s Filippi in a recent interview for the Great Big Story - which is committed to sustain and support Parmigiano Reggiano producers, because Parmigiano Reggiano is a product typical and unique to this area." What Filippi implies here is the relevance of the link between his land, Emilia Romagna, and the product itself, a link embod- i e d n o t o n l y b y t h e c u l i n a r y e x c e l l e n c e o f P a r m i g i a n o Reggiano, but also by the small business realities producing it. T h e s e f a r m s , s y m b o l o f t h e "family run made in Italy" for w h i c h t h e c o u n t r y i s k n o w n around the world, have been a s s o c i a t e d w i t h P a r m i g i a n o Reggiano production for genera- tions. Making this cheese is not only essential for their finances, but it is also crucial for family identity and, more at large, for the identity of the whole region. B y k e e p i n g o n a c c e p t i n g Parmigiano Reggiano wheels as a guarantee for loans, Credito Emiliano reaffirms its will to give a valuable hand to produc- ers, thus ameliorating, little by little, the whole area's economic growth. It also crucially high- lights the importance of support- ing the true "made in Italy," often made of families, tradition, collaboration among generations and, central to it all, passion. One last curiosity: where do Credito Emiliano keep all its wheels of cheese? Well, the bank has its own deposit, part of the Tagliate General Warehouse, where more than 300.000 wheels of Parmigiano are kept and taken care of. Better have good securi- ty, because their total value is close to 160 million euro. It may not be, technically, gold, but Parmigiano Reggiano is well close to it. Parmigiano becomes more valuable when aged, however, it was, and still is, common for producers to sell less mature wheels to have quicker access to cash NEWS & FEATURES TOP STORIES PEOPLE EVENTS

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