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ARE Update

  • Author(s): Carter, Colin
  • Saitone, Tina L
  • Sexton, Richard J
  • Medellín-Azuara, Josue
  • Gabrielyan, Georgi T
  • Sumner, Daniel A
  • Editor(s): McNamara, Juliet
  • et al.
Abstract

1. California's egg regulations became effective January 1, 2015. Immediately, egg prices in California were nearly double those in the rest of the U.S. as producers worked through an adjustment to new regulations. The price premium for eggs in California has narrowed but is likely to remain well above prices in the rest of the U.S. due to the continued regulatory uncertainty and higher costs associated with complying with the regulations.

2. Food and beverage processing is the third largest manufacturing sector in California. In 2012 California's food and beverage processing sector contributed $82 billion in value added to the California economy, 760,000 full- and part-time jobs, $10.5 billion in federal tax revenues, and $8.2 billion in state and local tax revenues.

3. The West Coast port delays that began in the summer of 2014 and lasted until near the end of February 2015 cost California agriculture dearly. As the delays extended into the winter, citrus exports were hit while exports of storable crops to Asia also slowed. The story for wine is more complex, because California both imports and exports wine through West Coast ports.

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