Tag Archives: parma

A Grating Topic: Parmesan Cheese

Toward the end of 2008, there was an unpopular multi-million dollar bailout by the government for the benefit of a single industry. No, I’m not talking about Wall Street, or the auto manufacturing industry, or insurance on obscure structured finance products. I’m talking about the Italian cheese market.

Back when the rest of the world’s politicians were stumbling over how to manage the global financial crisis, Italy enacted measures to help its cheesemakers. The government bought up 100,000 wheels of the highly touted parmesan cheese, along with 100,000 wheels of another popular cheese, grano padano. The reason? The wholesale price of these cheeses had fallen to €7-7,50/kg, below the production cost of €8-8,50/kg needed to make traditional parmigiano-reggiano cheese. And if the country’s signature cheese industry went under, what else would Italy have to offer? Mio dio! Thus, much parmesan was bought to help prop up the price and rescue Italy’s 430 or so parmesan cheesemakers. The food was subsequently donated to charity.

Now, you may be an Italian taxpayer or a mozzarella maker who is cheesed off about these interventionist government shenanigans, but all this goes to show that parmesan cheese is Kind of a Big Deal in Italy. In 2009, just under 3 million wheels of the stuff were produced, for sales totaling € 1.533 billion. For an industry that claims to be comprised of only small-scale, artisanal cheese producers, these numbers are nothing to sneeze at.
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The Barilla Gorilla: A Day Inside Academia Barilla

Do you know what Italian company was single-handedly responsible for changing the texture of America’s pasta?

Barilla was founded in 1877 by Pietro Barillo Sr., who began the business as a simple pasta shop in Parma. The company is now on its fourth generation of family owners, and has been almost continuously privately owned, save for a gap in the ‘70s when Barilla was bought out by U.S. multinational W.R. Grace. In 1990, Barilla began aggressively expanding into international markets, through the acquisition of local pasta companies and the development of manufacturing plants abroad. This included the creation of the first American plant in Ames, Iowa in 1999, with a second plant following in upstate New York.

Today, Barilla is the world’s largest pasta corporation, and the largest producer of baked goods in Italy, with sales in 2010 totaling €4.535 billion. The firm encompasses over 20 brands, exports to 125 countries, and holds 16,000 employees. They are also the single largest buyer of durum wheat in the world, and consequently, a major player in the supply chain, able to set price and quality demands.
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