Why is bacon becoming so expensive? Will its price continue growing?
The price of bacon has been going up due to increased demand during summer, and because of a California animal welfare law. Will the price hikes continue?
The price of bacon usually spikes during the summer season due to the popularity of the bacon, lettuce, and tomato (BLT) sandwich, which is widely consumed during tomato harvest time. Pork belly prices usually shoot up in July and August, but this year prices are nearing record highs.
Wholesale pork belly prices sit at 270.89 cents per pound at the moment. This represents an increase of over 100% year-to-date from 131.59 cents per pound in January. This is very close to the all-time high that was registered in August 2021, which was 279.97 cents per pound.
According to the US Department of Agriculture, the price of sliced bacon in major sellers in the country for the week ending Aug. 24 is 6% more than they were a year ago.
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Why is bacon becoming so expensive? Will its price continue growing?
Aside from increased seasonal demand, the price hike is caused in part by the implementation of an animal welfare law in California that took effect on July 1. The state’s regulation, called Proposition 12, prohibits the sale of pork which is not produced according to the state’s guidelines on housing dimensions. This includes meat sold by farms that enclose pregnant sows in very small areas, and spaces that are tinier than 24 square feet.
Many pig farmers are not in agreement with the new law, saying that they were not consulted when it was formulated. They said that the measure was created without input from hog farmers, veterinarians, or other animal care and food safety experts.
Pork producers unhappy with Proposition 12
According to a statement by the National Pork Producers Council, the initiative places the cost and compliance burden on farmers, most of whom are located outside of California.
The organization estimates the cost of constructing facilities that meet the new requirements at $3,400 to $4,000 per sow. They say that these expenses will discourage a number of pork producers, especially small and medium-sized farms that will not be able to afford the capital investment.
Because of these developments, the price of bacon will probably remain elevated as pork belly vendors are likely to keep their profit margins high.