California Faces Surging Pork Prices as Proposition 12 Takes Full Effect

The recent full implementation of Proposition 12 in California, mandating specific housing conditions for pigs, has led to a significant surge in pork prices across the state, catching many consumers off guard. Since January 2024, when the law came into full force, pork products have seen an unprecedented average price increase of 20%, according to a comprehensive report by the USDA’s Office of the Chief Economist.

Proposition 12, a groundbreaking animal welfare initiative, stipulates that all pork sold within California must originate from farms adhering to precise space requirements for pigs. This legislation, which began its phased implementation in July 2023, aims to provide more humane living conditions for livestock but has had immediate economic repercussions on the pork market.

The report highlights staggering price hikes in popular pork products: pork loin has skyrocketed by 41%, pork leg (fresh ham) by 20%, and bacon by 16%. Despite a gradual rise in the availability of Proposition 12-compliant pork, the supply falls short of meeting the robust demand in California, resulting in sharp price increases.

This spike in prices has also led to a noticeable decline in pork consumption within the state. Historically, California has contributed to 10% of the nation’s fresh pork consumption. Since the enactment of Prop 12, this figure has dropped to 8%, reflecting consumers’ hesitance or inability to cope with the higher costs.

Experts had anticipated a rise in pork prices following the implementation of Proposition 12. However, the actual increase has exceeded expectations, raising concerns about the potential for further market disruptions and supply challenges for compliant pork. Stakeholders and policymakers are advised to closely monitor these developments, as the long-term impacts of Proposition 12 on both the pork industry and consumer behavior in California remain uncertain.