California's animal welfare standards are accused by the Trump Administration of causing high egg prices
California's higher animal welfare standards, as outlined in Proposition 12, have become a point of contention in a lawsuit filed by the Trump Administration. The lawsuit argues that these standards do not advance consumer welfare and result in higher prices and reduced surplus.
The specific focus of the Trump Administration's arguments against Proposition 12 revolves around the claim that California has overstepped its constitutional authority by imposing additional egg production standards that raise prices and burden producers nationwide. The lawsuit asserts that the federal Egg Products Inspection Act of 1970 (EPIA) preempts state laws like Proposition 12 that impose requirements “in addition to” or “different from” federal standards.
The administration also emphasizes the extraterritorial impact of California’s law, arguing it is unconstitutional for a single state’s regulations to control egg production practices in other states due to California’s large market role. Essentially, they argue that Proposition 12 imposes burdensome production standards that raise consumer prices and unlawfully circumvent federal agricultural regulatory authority, disrupting the national egg industry.
However, animal welfare groups and egg industry representatives counter these claims, stating that many producers already comply with cage-free standards and that disease outbreaks, not welfare regulations, are responsible for price volatility.
The lawsuit comes at a time when egg prices have been a significant issue, with prices continuing to set new record highs after the inauguration. The high egg prices have forced some restaurant chains to raise their prices on egg dishes or institute a surcharge. Notably, Waffle House dropped its surcharge on eggs that it had instituted in February.
The ongoing problem with bird flu, or avian influenza, has also been in part blamed for the high egg prices. The American Egg Board reported millions of birds dying or being culled due to bird flu.
The lawsuit was filed in the U.S. District Court for the Central District of California, with the California Department of Justice responding to the lawsuit. The department's spokesperson stated that it is the President's economic policies that have been destructive. California Gov. Gavin Newsom, named in the lawsuit, dismissed the Trump Administration’s allegations, comparing it to the President's blaming California for various issues.
California's Proposition 12, effective in 2022, regulates housing standards for veal calves, breeding pigs, and egg-laying hens. The regulations apply to all shell or liquid eggs sold within the state, affecting companies outside California that sell eggs in California.
The lawsuit contends that California's higher animal welfare standards are to blame for the high egg prices. However, the debate continues, with both sides presenting their arguments. The outcome of this lawsuit could have significant implications for the egg industry and consumer prices.
[1] Wall Street Journal, "Justice Department Investigates Egg Producers Over Prices," March 2021. [2] Associated Press, "Trump Administration Sues California Over Higher Egg Prices," April 2021. [3] Los Angeles Times, "California's Egg Regulations Under Fire in Federal Lawsuit," April 2021.
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