In the heart of Italy’s Po Valley, a battle for the future of Parmigiano Reggiano is unfolding, not in the cheese cellars, but in the realm of agricultural policy. A recent study published in *Bio-based and Applied Economics* sheds light on how milk quotas and the Common Agricultural Policy (CAP) are reshaping the Geographical Indication (GI) systems that underpin this iconic cheese. The research, led by Alberto Giannecchini from the University of Parma’s Department of Economics and Management, offers a nuanced look at the economic, environmental, and social impacts of these policies.
The study, which employs an innovative combination of Positive Mathematical Programming and Agent-Based Modeling through the AGRISP model, reveals a complex picture. While milk quotas may boost production volumes and efficiency, they also appear to squeeze farmers’ profits and degrade environmental outcomes compared to a no-quota scenario. “Quotas can act as a double-edged sword,” Giannecchini explains. “They can enhance market stability and product quality, but they can also stifle innovation and increase costs for producers.”
The commercial impacts of these findings are significant. Parmigiano Reggiano is a €2.5 billion industry, with exports accounting for nearly half of its production. The study suggests that the current quota system, designed to protect the GI system, might be inadvertently harming the very farmers it aims to support. “The greening measures of the CAP 2023-2030 are a step in the right direction, but they need to be carefully calibrated to avoid unintended consequences,” Giannecchini warns.
The research also highlights the need for a more nuanced understanding of GI systems. These systems, which protect products based on their geographical origin and traditional production methods, are increasingly important in the global market. Yet, as Giannecchini’s study shows, they are not immune to the complexities of agricultural policy.
The study’s findings could shape future developments in agricultural policy, particularly in the EU. As the CAP evolves, policymakers will need to balance the need for market stability and product quality with the need for innovation and environmental sustainability. The case of Parmigiano Reggiano serves as a stark reminder that one-size-fits-all policies may not be the best approach.
For the agriculture sector, the study underscores the importance of understanding the commercial impacts of policy decisions. As Giannecchini puts it, “Policies are not just about rules and regulations. They are about people, their livelihoods, and their futures.” The challenge for policymakers and industry stakeholders alike is to create a policy framework that supports these goals while also protecting the unique characteristics of GI products.
In the end, the battle for the future of Parmigiano Reggiano is not just about cheese. It’s about the future of agricultural policy, the environment, and the farmers who are the backbone of the industry. As Giannecchini’s study shows, the path forward is complex, but it’s a journey worth taking.