US: Prop 12 is going to happen

Published 2023년 6월 5일

Tridge summary

The U.S. Supreme Court has upheld California's Prop 12 legislation, which sets minimum living space requirements for pigs, set to take effect on July 1, 2023. This decision has sparked concerns about state interference in agricultural practices and could lead to higher pork prices in California due to increased production costs. In the short term, pork prices outside of California may drop due to an oversupply as producers adjust to the new regulations. Long-term implications include potential herd contraction and reduced pork production, although high feed prices and loss rates could balance this. The overall impact is expected to be bullish for the pork industry, despite the challenges posed by Prop 12 and the ongoing uncertainty regarding national pork producers and feed prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The U.S. Supreme Court has ruled that California's Prop 12 legislation will hold, it will become law starting July 1, 2023. Prop 12 was voted into law in 2018. It becomes the law July 1, 2023 after a lengthy battle in the court system. Compliance will be self-certified until the end of the year. Starting January 2024, third party certification will be mandatory. This means several things. First, a can of worms has now been opened up. What's to stop another state from telling pork producers how to raise hogs? It means that a two-tired market should develop. California will always have to pay more for their pork because of the higher cost of production required to meet Prop 12 regulations. In the short term, perhaps the next few months, until enough producers are compliant, pork prices outside of California will be depressed with extra supply on the market. Enough said about this huge mess and failure by the National Pork Producers Council to protect U.S. pork producers. In the very ...

Source: NationalHogFarmer