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California consumers may have noticed higher prices for pork at their local supermarkets since July 1, 2023. This is due to the impacts of California's new law, Proposition 12 (Prop 12), which was partially implemented on July 1, 2023, and fully implemented on January 1, 2024.
According to the Giannini Foundation of Agricultural Economics, University of California, preliminary data indicate that pork prices of products in California that are impacted by this new policy rose, on average, 20% after July 1, 2023. This varies by product, with pork loins experiencing the largest impact with a 41% increase in price due to this policy.
As expected, the products that are not covered by Prop 12 did not see a significant relative price change. While there were significant impacts following the partial implementation and first month of full implementation, there is still uncertainty regarding the long-term impact on California’s retail pork prices. Additionally, California's share of national fresh pork consumption has significantly declined, falling from its typical 10% to 8% as of January 2024.
February 2024/ Giannini Foundation of Agricultural Economics, University of California/ United States.
https://s.giannini.ucop.edu
