I said this would happen. Here’s the backstory (via Green Jihad)
At the beginning of next year, California will begin enforcing an animal welfare proposition approved overwhelmingly by voters in 2018 that requires more space for breeding pigs, egg-laying chickens and veal calves. National veal and egg producers are optimistic they can meet the new standards, but only 4% of hog operations now comply with the new rules. 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.
The courts did not intervene, particularly over the notion that other states must comply with the California rules to sell products
But, it won’t jump by 60%, it would go to zero in most cases, as producers would simply avoid selling pork products in California. No bacon, sausage, barbecue, pork dumplings, or anything else that would be affected. That’s simply the easiest thing to do, is it not? Some products will be sold, and the prices will certainly jump way more than 60%. Is that realistic? Because that’s what the law says. Even if they want to sell it, the law says they can’t.
And now
Smithfield Foods to shutter California meat-packing plant
Meat-packing giant Smithfield Foods said Friday it will close its only California plant next year, citing the escalating cost of doing business in the state.
The Farmer John meat-packing plant in Vernon, an industrial suburb south of Los Angeles, will shut down in February, with its 1,800 employees receiving severance and job placement support along with bonuses for those who choose to stay on the job until the closure, said Jim Monroe, vice president of corporate affairs.
Some workers, who on average earn about $21 per hour, also will have opportunities to relocate to other facilities owned by the Virginia-based Smithfield Foods Inc.
The Vernon plant slaughters pigs and packages products such as ham and bacon. Some operations will be moved to other facilities in the Midwest, but the overall reduction in processing capacity is prompting Smithfield to reduce its sow herd in Utah. The company also said it is exploring ways to exit its farms in California and Arizona.
Reducing/moving operations in those other states is a direct reflection on the California law, because they just won’t need that much product for California now.
Monroe said operating costs in California are much higher than in other areas of the country, including taxes and the price of water, electricity and natural gas.
“Our utility costs in California are 3 1/2 times higher per head than our other locations where they do the same type of work,” he said.
The ABC piece mostly ignores Proposition 12, but, that is the primary driver of what Smithfield Foods is doing, jacking up the price of operations and goods. But, hey, this is what you wanted, Californians. Suck it up, no complaining. And you know they won’t be the first.
Read: Surprise: Smithfield Foods Pulls Out Of California Over Pork Law »