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Two years after full implementation, California’s Proposition 12 continues to drive pork prices higher, according to new research from the North Dakota State University Agricultural Risk Policy Center.
The study reveals that prices for covered pork products have increased by an average of 20% compared to the rest of the country. As food affordability concerns grow, agricultural leaders are calling on Congress to address the “patchwork” of state regulations through federal legislation.
Data Shows Significant Price Hikes for Pork Cuts
The NDSU data highlights how Prop 12 has specifically impacted various pork products:
- Pork Loins: Up 32%
- Ribs: Up 22%
- Shoulders: Up 16%
- Bacon: Up 16%
In total, California consumers have paid an additional $350 million for pork products, leading to a significant decline in consumption across the state.
Relative to the pre-policy baseline, the retail price gap widened by 72.7 cents per pound in California and 62.8 cents per pound in Massachusetts, with a pooled increase of 71.2 cents per pound. These effects extend across major covered cuts, and California’s share of national pork purchases remains below its pre-policy level, declining from 8.5% to 7.1%, a relative reduction of approximately 16%.
“Overall, the evidence shows that Proposition 12 created a segmented market for compliant pork, sustained higher retail prices in compliant states, reduced relative purchases, and generated consumer costs that substantially exceeded the corresponding wholesale premium. The central implication is that the burden of compliance was shaped by supply chain transmission as much as by upstream production costs, with the largest effects emerging at the consumer end of the market,” the researchers summarize in the report.
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