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> Barry Goodwin, an economist at North Carolina State University, estimated the extra costs at 15% more per animal for a farm with 1,000 breeding pigs. > If ha
by geofft 5y ago
> Barry Goodwin, an economist at North Carolina State University, estimated the extra costs at 15% more per animal for a farm with 1,000 breeding pigs.
> If half the pork supply was suddenly lost in California, bacon prices would jump 60%, meaning a $6 package would rise to about $9.60, according to a study by the Hatamiya Group, a consulting firm hired by opponents of the state proposition.
So let supply and demand work it out? If, as this pork industry PR firm claims, half the pork supply just decides to not participate in the California market, it's financially sensible on the margin for any individual pork farmer to sell meat for anywhere from 15% to 49% more. Note in particular 15% per animal means you're not counting fixed costs like labor, so probably the final price increase will be less than 15%.
(This does show the weakness of the California proposition system, though: it's impossible for the normal functioning of government to clarify this law etc. because it's the unchangeable will of the people.)
- dragonwriter 5y ago> This does show the weakness of the California proposition system, though: it's impossible for the normal functioning of government to clarify this law etc. because it's the unchangeable will of the people. That's... misleading. Its true that there is more friction with, say, legislative revision. But its not immutable, the legislature would just have to refer proposed changes to the people. This is very much not an insurmountable barrier, such submissions are not uncommon.