Hard Times for Parmigiano Makers Have Italy Ponying Up the Cheddar. (WSJ, hat tip Sauce Supreme)

The world is bailing out banks and car companies. Italy is coming to the rescue of parmigiano cheese.

In an effort to help producers of the cheese commonly grated over spaghetti, fettuccine and other pastas, the Italian government is buying 100,000 wheels of Parmigiano Reggiano and donating them to charity.

Though demand for parmigiano is strong in Italy and abroad, producers have been struggling for years to make money, putting the future of Italy’s favorite cheese at risk.

“It’s a tragic situation,” said Marco Iemmi, who has been making parmigiano for 30 years in Salsomaggiore Terme, a small town in Italy’s fertile northern Emilia-Romagna region. “I’ll have to close up shop unless things improve.”