(Bloomberg) — Hog futures surged following a court-ordered delay to California’s Proposition 12 rule, intended to provide more humane conditions by giving farm-raised pigs more living space.
A California judge granted a petition that will delay the regulation that had just gone into effect at the beginning of the year, according to a filing in the Sacramento County Superior Court.
Some meat companies including Seaboard Foods, the second-largest U.S. pig producer and fourth-biggest pork processor, had halted sales of certain products due to the rule. The delay could allow pork that wouldn’t comply with the rules to come in California, a major meat consumer.
“It looks like the industry got a last-second reprieve for an additional 180 days after they publish the final rule,” Christine McCracken, executive director for meat research at farm lender Rabobank.
California’s New Pig Law Prompts Meatpacker to Halt Pork Sales
Hog farmers largely opposed the rule, saying the requirements would raise costs when prices for building materials have been soaring, and also boost meat prices for consumers. Advocates said it would provide more humane conditions for pigs to turn around.
McCracken said the delay “pushes the effect of Prop 12 into 2023 for consumers and buys producers more time to make changes in production and really get more clarity on the rule.”
Grocers and restaurateurs had sought a 28-month postponement of Proposition 12, which was proposed in part in reaction to use of cages known as gestation crates that limit animal movement.
Chicago hogs climbed as much as 2.2% Tuesday, hitting 97.375 cents per pound, the highest since July.
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