CALIFORNIA, USA — People may start paying more for pork and have a harder time finding it. Signs popping up in grocery stores are warning customers about Proposition 12 and a resulting temporary shortage and price increase of pork.
Proposition 12 bans the sale of pork from overly confined pigs.
"Any regulation that imposes these kinds of restrictions on society, or business people, you know that that cost is going to be passed on to the consumer somewhere," said Sanjay Varshney with Goldenstone Wealth Management.
Because of Proposition 12, pork farmers have to give their pigs a larger space to live in. Farmers outside of California need to comply too and if they don't, their pork can’t be sold in the state.
Varshney said this type of regulation trickles down to impact people's pocketbooks.
"It's becoming increasingly difficult for both businesses and the people who live in the state of California because many of these regulations have become very expensive," Varshney said.
A study from UC Davis estimates shoppers will pay about 8% more for pork due to Proposition 12 costing consumers a loss of $320 million.
"While many of these regulations might be very well-intentioned, and you know, in the way they're crafted on the way they get approved, but the actual cost has been very burdensome," Varshney said.
While Proposition 12 was approved by voters back in 2018, farmers needed time to make the required changes.
There’s a grace period to allow suppliers time to sell any non-compliant pork already on the market. But the deadline for farmers to prove compliance is now the end of this year. Keep in mind that Proposition 12 also includes veal and eggs.
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