This was presented at the American Applied and Agricultural Economics Association (AAEA) Annual Meeting, Austin, Texas
Hanbin Lee and Dan Sumner, economists at CAIL, along with their colleague Rich
Sexton from the Department of Agricultural and Resource Economics at UC Davis, have
conducted an analysis of the economic implications of Proposition 12. This proposition will
affect pork products sold in California, which are sourced from hogs raised outside the state, by regulating these products based on the housing conditions of the sows. During the 2021 AAEA Annual Meeting in Austin, Texas, Hanbin Lee, one of the co-authors, shared their findings. The research indicates that farrowing operations compliant with Proposition 12 will experience increased costs (about 4%), and processing and distribution operations adhering to these standards will also face higher expenses (about 5%). Consequently, Lee suggested that this could lead to a significant welfare loss for California consumers of pork products, estimated at around $320 million annually.
Please see the following link for detailed information.