A Win for Grocers, Consumers, and Good Governance

PRESIDENT’S MESSAGE

A Win for Grocers, Consumers, and Good Governance

RON FONG

PRESIDENT AND CEO CALIFORNIA GROCERS ASSOCIATION

The California Superior Court recently ruled in favor of the grocery community, acting to delay Prop 12’s implementation until regulations are finalized.

Whether we’re stocking store shelves, or shopping them, we’ve all seen firsthand how the pandemic has continued to challenge the industry’s ability to supply products to consumers. This fact made it particularly concerning when Prop 12’s January 1, 2022, implementation date drew closer, and the grocery industry was still without finalized regulations. Back in 2018 two-thirds of Californians voted in favor of Prop 12, which promised to set new standards for the way pork, veal, and eggs are produced to be sold in the state’s grocery stores. While the ballot initiative laid out generalities, the California Department of Food and Agriculture (CDFA) was expected to finalize its regulations by September 1, 2019. These were to be the guidelines pork producers would use to refurbish their facilities.

The deadline for finished regulations came and went as COVID-19 roiled the CDFA’s plans to draft regulations. Having lived through the past two years of the pandemic, the delays are understandable. Yet, the state’s decision to take no action to delay the January 1, 2022, implementation due to its own lack of regulatory progress, is less so. CGA was forced to seek to delay Prop 12 in the courts.

At the end of November, our grocery community joined California restaurants, retailers, and a family-run pork producer in challenging Prop 12’s implementation date. In late January the California Superior Court, Sacramento County, ruled in favor of CGA, and its members, alongside our partnering plaintiffs. The Court’s ruling issued a stay of enforcement against Prop 12, meaning pork producers – almost all of which operate out of state – will have 180 days from when CDFA finalizes its regulations to meet California’s standards for pork products. CGA is thankful for the court’s intervention. To impose mandates without completing the regulatory process would have been a strike against good governance – one which would have forced producers to pull products from the marketplace, or risk being on the receiving end of regulatory fines. With meat prices soaring and plenty of supply chain issues already existing, the last thing Californians needed was to see their favorite pork products missing from meat cases or to see costs increase even further.

A few years back, the CGA Board established the goal of becoming an advocate for the customers our grocery community serves. In the case of Prop 12, CGA and its members’ legal victory represents a win for our customers and our businesses. Thank you for supporting the Association’s legal strategy. ■