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Why Bacon Prices Are Soaring: California Animal Welfare Law and Summer Demand Drive Up Costs

by Editorial Team
August 23, 2023
in Business
Reading Time: 3 mins read
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Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

ADVERTISEMENT

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

ADVERTISEMENT

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

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Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

ADVERTISEMENT

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

ADVERTISEMENT

Bacon Prices Soaring Due to Animal Welfare Law and Summer Demand

Bacon is becoming more expensive as wholesale pork belly prices reach record highs. This increase is due to a combination of an animal welfare law in California and the high demand during the summer months.

Pork belly prices have risen over 100% since January, going from 131.59 cents per pound to 270.89 cents per pound at the end of July. This is just shy of the all-time high of 279.97 cents per pound in August 2021. In other words, prices have jumped by 106%.

Currently, wholesale pork belly prices are trading at 270.89 cents per pound.

As a result, consumers can expect even higher prices for bacon, which is primarily made from pork bellies.

More Space for Pregnant Sows

According to Brian Earnest, Cobank’s lead protein industry analyst, bacon and pork in general are expected to become very expensive in California.

Analysts attribute the surge in pork prices partly to a recently imposed animal welfare regulation in California. This regulation, known as Proposition 12, came into effect on July 1.

Proposition 12 bans the sale of pork from farms that confine pregnant sows in small enclosures of less than 24 square feet.

Although other parts of the law were implemented earlier, this specific aspect came into effect on July 1. The National Pork Producers Council (NPPC) claims that pig farmers were not properly consulted during the development of Proposition 12.

According to the NPPC, the cost of building compliant housing is estimated to be around $3,400 to $4,000 per sow. This is about 40% more expensive than using gestation stalls. These increased costs will likely discourage many pork producers from complying with the regulation.

The sentiment is shared by Cobank’s Earnest, who believes that hog producers will be reluctant to build Prop 12 compliant housing. The rush to buy pork products before the July 1 deadline has also contributed to the rise in belly prices.

As a result, the spike in pork belly wholesale prices will lead to higher retail and food services prices for bacon.

Ryan Hojnowski, a pork market analyst at Urner Barry, states that this will ultimately make bacon more expensive for consumers.

Data from Urner Barry shows that from the week of June 5 to the week of July 31, prices for skinless bellies weighing 11-13 pounds surged 157%, going from 99 cents per pound to 255.2 cents per pound on a wholesale basis.

BLT Season

The impact of the law is further heightened by the higher demand for bacon during the summer months, coinciding with lower pork production.

August is typically known as “BLT season,” when the popular bacon, lettuce, and tomato sandwich is consumed during the peak tomato harvest.

Lee Schulz, an associate professor at Iowa State University, explains that pork belly prices usually peak in July and August. Last year, prices in August reached 222.69 cents per pound, higher than the rest of the year.

Hog slaughter tends to decrease during this time of year, which tightens the supply of fresh pork bellies on the market. This, in turn, leads to higher prices.

According to the United States Department of Agriculture, prices of sliced bacon in major U.S. retailer outlets for the week ending August 24 are 6% higher compared to the previous year.

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