Parmigiano Reggiano: Consortium members end 2020 with a positive balance despite the pandemic: +7.9% sales in Italy and +10.7% abroad. Also production is increasing (+4.9%) and prices are back to profitability.

Reggio Emilia, 25 February 2021 - 2020 was a record year for Parmigiano Reggiano PDO production, which saw a total increase of 4.9% over the previous year.

The 3.94 million wheels of cheese (about 160 thousand tons) produced in 2020 represent the highest peak in the age-old history of Parmigiano Reggiano. 2.35 billion euro turnover for the protected designation of origin product, which is increasingly expanding abroad: an outlet for a constantly growing production that needs new market spaces. In the last four years, production rose from 3.47 million to 3.94 million wheels with a 13.5% increase.

Parmigiano Reggiano also enjoyed a very good 2020 as far as prices are concerned. If in the first semester, the price of 12-month Parmigiano Reggiano cheese (average price of 12-month Parmigiano Reggiano from producing dairy, source: bulletins from Borsa Comprensoriale Parma) was 7.55 euro/kg, at the end of the year it rose above 10 euro/kg. The average annual price (8.56 euro/kg) was below the 2019 price, but the remarkable increase in the second half of the year led to a recovery of margins.

The Parmigiano Reggiano market is becoming ever more international.

Italy – which accounts for 56% of the market – recorded a 7.9% increase of the sales volumes. Large Retail is still the top distribution channel (61%), followed by normal trade (13%), retail (12%) and food industry (4%). The Horeca channel accounts for only 2% - thus with open to considerable margins for improvement - and experienced a drastic fall caused by the closure of restaurants during the pandemic. The remaining 7% is distributed in other sales channels.

The export share is 44% (+10.7% of volume growth vs. previous year). The United States is the first market (20% of overall export), followed by France (19%), Germany (18%), the United Kingdom (13%) and Canada (5%).

On the main markets, the best performances were recorded in the United Kingdom (+21.8%), Germany (+14.8%) and France (+4.2%). Growth is also recorded in the United States (+1.9%) and Canada (+36.8%), together with new markets: Australia (+85.4%), Gulf Area (+62.3%) and China (+8%).

“Despite the difficulties associated with the pandemic, Parmigiano Reggiano ended 2020 with a successful result that has rewarded the reputation, the quality of the PDO product with the highest value in the world. Consumers forced to give up out-of-home meals for several months have shown their preferences very clearly on all markets. We are ready to deal with a challenging 2021: the Parmigiano Reggiano brand can become a true global brand and we are working in this direction” comments Nicola Bertinelli, President of the Parmigiano Reggiano Consortium.