Hog market reaction was swift Thursday following the US Supreme Court’s decision to uphold California’s Proposition 12, which dictates that all fresh pork sold within the state come from sows that were given 24 square feet of floor space.
Producer groups said the cost of pork to the consumer would rise sharply because of this ruling.
The Humane Society of the United States issued a statement on its website saying it was “delighted” with the ruling.
SUPPORTERS CELEBRATING
The HSUS said,…California Proposition 12 – the nation’s strongest farm animal welfare law – made clear that preventing animal cruelty and protecting public health are core functions of state governments.
PORK INDUSTRY SURPRISED
Internet reaction to the news showed surprise by many in pork production. Since the law requires that all fresh pork sold within the state come from pens of a designated minimum size, which is larger than many use, the NPPC argued that it violated the US Commerce Clause by dictating production practices outside of its borders.
However, Meatingplace reported the Court’s ruling that “companies that choose to sell products in various states must normally comply with the laws of those various states.”
Smithfield Foods, the largest pork producer in the US, issued a statement that said the company was committed to serving customers in California while complying with all laws.
But Smithfield’s statement made no mention of the cost it will have to incur to meet the standards. And, it seems many other producers counted on a Supreme Court defeat of Proposition 12 outside of California.
The Animal Agriculture Alliance issued a statement that read, in part, “Today’s Supreme Court decision on California’s Proposition 12 sets a dangerous precedent for animal rights extremist groups to target other states with similar ballot initiatives. The Humane Society of the United States is a prime example of a group that focuses efforts on states that will be minimally impacted by the legislation, knowing they will receive less resistance within the state while setting a precedent. In California, specifically, farmers in the state raise less than 1% of pigs in the U.S. yet consume 13% of the pork. This means that a significant majority of California’s pork is produced in other states, who will now be expected to comply with regulations passed by voters outside of their own state.”
“The true motive of these changes is to make it less efficient and more expensive for farmers to raise animals for food, driving up the cost of meat, dairy, poultry, and eggs for consumers, forcing them to make tough choices about what they can afford to feed their families and forcing farmers to make costly changes that may make it impossible to keep their business afloat.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $171.00 per cwt to $179.10, compared with last week’s range of $167.24 to $183.37 per cwt. FOB dressed steers, and heifers went for $271.56 per cwt to $277.01, compared with $272.57 to $282.43.
The USDA choice cutout Thursday was down $1.15 per cwt at $305.72 while select was up $0.04 at $284.58. The choice/select spread narrowed to $21.14 from $22.33 with 105 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.73 to $1.85 a bushel over the Jul corn contract, which settled at $5.82 1/4 a bushel, down $0.11 3/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $199.40 per cwt, up $0.61. This compares with Thursday’s May contract settlement of $204.12 per cwt, down $1.25.