Support of €40 mln to the Granterre Consortium Parmigiano Reggiano supply chain

Intesa Sanpaolo is making €40 million available to the Granterre Consortium supply chain for a confirming transaction to advance the companies in the Parmigiano Reggiano chain cash on the sale of cheese.

The aim of the initiative is to support agri-food companies in the supply chain at a particularly delicate time in terms of raw material procurement and high energy costs.

The Granterre Consortium brings together 14 cooperative dairies representing about 500 farmers, and extends to about 650 members and 700 farms in the provinces of Modena, Bologna, Mantua and Reggio Emilia. The Parmigiano Reggiano produced is marketed under the Parmareggio brand.

Confirming is a financial solution designed to optimise working capital management within a production chain, facilitating payments between the company purchasing goods and services and its suppliers. Being part of the supply chain also allows companies better access to credit.

In the agri-food sector, through its Agribusiness Department Intesa Sanpaolo has already entered into 106 confirming contracts and 170 supply chain contracts involving more than 6,500 suppliers, a total turnover of more than €22 billion and more than 22,000 employees of the supply chain head.

Photo courtesy of Parmareggio SpA