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Prop 12 causes some food price increases in CA

USDA’s chief economist says state-specific livestock production requirements are having an impact on food prices.

Seth Meyer says Proposition 12, a law requiring pork sold in California to be raised under strict guidelines, has caused a 19% increase in retail costs and a 21% increase in wholesale costs.

“It’s the California consumers who will end up paying for this.”

He says the cost increases goes beyond what it costs to produce livestock.

“It goes to the next level to make sure you have segmentation and then, it goes on to the next level to retail it to California consumers.”

Proposition 12 went into effect in January. Meyer was a speaker at the Ag Outlook Forum in Kansas City.