April 8, 2024

Pork prices in California, US, increased by average of 20% due to state's Prop 12

Consumers in California, the United States, may have seen higher prices for pork at their local supermarkets since July 1, 2023, and 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 at the University of California.

Preliminary data indicated that Californian pork prices, that are impacted by the 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 Prop 12.

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.

- Giannini Foundation of Agricultural Economics