Bacon prices are rising due to a California Proposition. Now, pig farmers are in contention with animal rights’ activists. Additionally this effects restaurants.

California Proposition 12

California Proposition 12 bans the sale of pork from farms that confine pregnant animals into tiny enclosures and spaces. The proposition went into effect on July 1st. Farms must meet the required measurements in their enclosures.

Pig farmers reaction

The building is estimated to cost $3,400 to $4,000. Pig farmer argue that this will be 40% more expensive than a gestation stall. They will have to raise pork prices to combat the loss.

According to the National Pork Producers Council, the farmers were not properly consulted. Since pigs are smaller than cows they argue their enclosure requirements should be smaller.

Bacon prices affected

Pork belly prices rose 100% from 131.59 cents a pound in January to 270.89 cents a pound in July. Analysts have confirmed part of this is due to to the imposed animal welfare regulation in California.

Seasonally pork belly prices typically peak during July and August. This year is following a similar pattern. Hog slaughter has been steadily moving lower which is in line with this time of year.

Lee Shulz, Associate Professor at Iowa State University Department of Economics

This price rise will have not have a major impact on grocery stores. The stores can typically shift costs due to carrying thousands of products. Restaurants will have it the worst.

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