2nd article was bit confusing. It would have been better if you could have given some one sentence or one word explanation to technical terms or new words. Thanks 👍
I love the tidbits,there should be atleast 20-30 tidbits at the start of the newsletter then one deep dive, this would greatly increase retention rate as well.
1) are the farmers paid in premium by the cheese producers, as they take all the cost to maintain the cow's in peak summer seasone. And,
2) If an asset pledged as collateral appreciates significantly during the loan period, does the borrower get to keep that increase in value when the collateral is returned, as a parmesan cheese wheel becomes more sought after as it ages or matures, as generally banks lend less than the collateral value.
as a hypothetical economic question, i am not well versed in bank stuff, so the answer could help me better understand the economics.
1. There is no verified standard “summer premium” paid to farmers for higher cooling costs. Cooperative farmers may benefit indirectly through better milk prices or shared cheese profits, but they also absorb much of the additional cost themselves.
2. Yes. The wheel still belongs to the borrower, so after repaying the loan, interest and storage charges, they keep both the cheese and its increased value; the bank lends only 60–80% of its value as protection against price falls or defects.
2nd article was bit confusing. It would have been better if you could have given some one sentence or one word explanation to technical terms or new words. Thanks 👍
Thank you for the feedback Ashish, we'll be mindful :)
Fascinating to read about cheese as collateral. Please do keep publishing about lesser known economic stories around the world!!
Curious whether Italy was impacted by Middle Eastern war which impacted cattle fodder price like India or it was only because of extreme summers..
I love the tidbits,there should be atleast 20-30 tidbits at the start of the newsletter then one deep dive, this would greatly increase retention rate as well.
Had 2 douts regarding the 2nd article.
1) are the farmers paid in premium by the cheese producers, as they take all the cost to maintain the cow's in peak summer seasone. And,
2) If an asset pledged as collateral appreciates significantly during the loan period, does the borrower get to keep that increase in value when the collateral is returned, as a parmesan cheese wheel becomes more sought after as it ages or matures, as generally banks lend less than the collateral value.
as a hypothetical economic question, i am not well versed in bank stuff, so the answer could help me better understand the economics.
Hi Samarth, in this case,
1. There is no verified standard “summer premium” paid to farmers for higher cooling costs. Cooperative farmers may benefit indirectly through better milk prices or shared cheese profits, but they also absorb much of the additional cost themselves.
2. Yes. The wheel still belongs to the borrower, so after repaying the loan, interest and storage charges, they keep both the cheese and its increased value; the bank lends only 60–80% of its value as protection against price falls or defects.
Thank you for the answer😃⚡️
Please don't promote animal cruelty by showing Popeyes Chicken shop and KFC.
They're just talking about the business mate.. No need to make it into social commentary...