Inflation is About to Cook California’s Bacon as New Rules Kick-In

Life gets more challenging in California daily.

Today’s test of my resolve to continue residing in California is that new rules will likely slam bacon supplies.

A California law taking effect next year could make pork challenging to find and more expensive to purchase.Beginning January 1, California will enforce the Farm Animal Confinement Proposition (Prop 12) which was approved by voters in 2018 and requires more space for breeding pigs, egg-laying chickens and veal calves.Unless the courts intervene or the state temporarily allows non-compliant meat to be sold in the state, California will lose almost all of its pork supply, much of which comes from Iowa, and pork producers will face higher costs to regain a key market.National veal and egg producers are optimistic they can meet the new standards, but only four percent of hog operations now comply with the new rules.

Experts believe that the price of bacon could soar by up to 60 percent. Shortages are a possibility.

The outlet quoted Matt Sutton, the public policy director for the California Restaurant Association, as saying: “We are very concerned about the potential supply impacts and therefore cost increases.”Should half of California’s pork supply end up lost by the start of next year, the price of bacon could rocket up by 60 percent, which means a $6 pack would increase to $9.60, according to a Hatamiya Group study seen by AP.While the final regulations are not finished, the rules about the space have been known for years.The California Department of Food and Agriculture said in response to questions put to them from AP: “It is important to note that the law itself cannot be changed by regulations and the law has been in place since the Farm Animal Confinement Proposition (Prop 12) passed by a wide margin.”

California restaurant owners are mounting a challenge.

“Our number one seller is bacon, eggs and hash browns,” said Jeannie Kim, who for 15 years has run SAMS American Eatery on San Francisco’s busy Market Street. “It could be devastating for us.”With a reworked menu and long hours, Kim has managed to keep her San Francisco restaurant alive during the coronavirus pandemic. Now, she fears her breakfast-focused diner could be ruined within months by California’s new rules….The pork industry has filed lawsuits but so far courts have supported the California law. The National Pork Producers Council and a coalition of California restaurants and business groups have asked Gov. Gavin Newsom to delay the new requirements. The council also is holding out hope that meat already in the supply chain could be sold, potentially delaying shortages.

Pigs may not fly, but in California, the pork prices will be sky-high.

Tags: California

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