The impact of California Proposition 12 on U.S. pork supply

Q&A interview with Dr. Henry Zerby

On May 11, 2023, the Supreme Court ruled that the California law directing the care of pigs and hogs used for pork does not violate the Constitution, which gives the state of California the greenlight to implement Prop 12.

Entegra sat down with VP of Supply Management Dr. Henry Zerby to understand the impact of this new legislation on pork production and supply.

What is California Proposition 12?

• Prohibits the sale of various fresh, whole-muscle pork products (including bacon, fresh ham, chop, ribs, riblet, loin, shank, leg, roast, brisket, steak, sirloin or cutlet, that is comprised entirely of pork meat, except for seasoning, curing agents, coloring, flavoring, preservatives and similar meat additives) within the state of California if they do not comply with the Prop 12 housing requirements.
• Dictates the housing requirements for breeding pigs should have at least 24-square feet per animal, and that they have the ability to turn around freely.
• Exempts any fully cooked (including pre-cooked bacon, fully cooked hams, chops, ribs, etc.) or further processed pork products (ground pork, sausage, bratwurst, etc.).

What does California Proposition 12 mean for foodservice operators?

“By July 1, California expects distributors to have certification from suppliers, either self-certified or third-party certified, that their product is compliant.

But by January 2024, all those products coming from suppliers will have to be third-party verified that they are compliant with Prop 12.

California regulators have also said they know there's going to be a certain amount of inventory already in production and processing, as well as in distribution centers, freezers, and warehouses that they’ll allow to be worked through; essentially providing the supply chain some additional time to come into compliance by January 1, 2024.”

When does Proposition 12 go into effect?

“By July 1, California expects distributors to have certification from suppliers, either self-certified or third-party certified, that their product is compliant.

But by January 2024, all those products coming from suppliers will have to be third-party verified that they are compliant with Prop 12.

California regulators have also said that they know there's going to be a certain amount of inventory already in distribution centers, in freezers and warehouses that they’ll allow to be worked through.

So existing inventory is not in question, but new replenishment inventory will be.”

Will pork prices be at a premium?

“There is certainly a premium for this product as there is a greater cost associated with this type of production or housing system. The concern becomes whether pork products will even be available.

“This legislation is aimed at the production level, at how sows are housed at the farm level. There will be some time before more units are converted over to be compliant, because those farms deal with the same supply chain challenges delays and issues in terms of availability of associated equipment and labor to install the equipment as the rest of the industry does every day.”

Entegra will keep you informed if there are further changes or modifications to the Prop-12 implementation and provide expert analysis of the impact on the hospitality industry.

Interested in implementing cost-saving strategies in your business? A group purchasing organization can help you save on nearly everything you buy – including pork. Contact us or call 833-977-1765.

 

About Dr. Henry Zerby

Dr. Zerby joined Sodexo in January 2021 as the Vice President of Food for Supply Management in North America. He is responsible for providing leadership and strategic direction to the procurement teams covering Snacks & Beverages, Proteins and Groceries/Prepared Foods.

Dr. Zerby served as the Chair of the Department of Animal Sciences at The Ohio State University where he served on the faculty in a teaching, research and extension role for 17 years.

Dr. Zerby was raised on a diversified livestock farm in central Pennsylvania and has production and processing experience with cattle, swine, sheep and poultry. He obtained his Ph.D. and M.S. from Colorado State University and his B.S. from The Pennsylvania State University. Henry currently resides in central Ohio with his family on a small farm where they raise cattle and sheep.