Endless questions surround how Proposition 12 will impact the U.S. pork industry. Although the domestic markets will be affected the most, the international markets will also feel the strain of Proposition 12.
“We rely on California ports for the export industry,” U.S. Meat Export Federation economist Erin Borror told AgriTalk’s host Chip Flory. “Over 50% of our waterborne exports of pork leave via the California ports. High chilled pork volume markets like Japan, our biggest waterborne chilled market, are basically entirely reliant on the California ports.”
As of July 1, all transit product is supposed to be labeled accordingly for export, for trans-shipment or “not Prop 12 compliant.”
Export Market Questions Remain
“We are fortunate that we can trans-ship via California. In a sense, that’s why the export product is less of a worry, because we will still be able to ship out non-Prop 12 product,” she points out. “But there are a lot of questions on what that means.”
She said it’s specifically written to be on the bill of lading and shipping documents to say for export, for trans-shipment or “not Prop 12 compliant.”
What’s less clear is how and when the product or the documentation will be inspected and what it means for those plants to practically be able to implement.
“Will this mean a separate product code, separate label? I’ve heard some optimism on being able to just add it to the shipping documentation and invoices and it not be a huge burden. But again, we’re less clear on where this documentation is checked,” she said.
A lot of the export documentation is electronic, so Borror explained that those papers may not be traveling with the product. Other questions surround rail versus truck and products that are in cold storage.
“The immediate-term concern is the potential damage to the market with products that should have been sold in California and the need to actually export even more,” she said.
What About Pork Imports to the U.S.?
Another big question is how will this work for pork imports? The U.S. mostly imports pork from Canada, but Europe is No. 2 followed by Mexico.
“To be able to sell it in California, that imported product will have the same requirements as far as sow housing,” Borror said. “My understanding is that some Canadian producers are probably Prop 12 compliant, but they’re not audited, and they’re not verified yet. The same is true with Europe, but I would have less clarity on that and the same for Mexico.”
It’s her understanding that those audits haven’t happened, she said.
“That’s a strange part because you’re talking about California Department of Food and Ag auditing foreign farms. I mean, it’s strange to be auditing in California, but auditing foreign farms? And how will that actually operate?” she asked.
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