Fast food ads are about to feature a lot less bacon

Bringing home the bacon is getting more expensive.

Wholesale prices for pork belly – the cut of meat used to make bacon – have almost tripled since the start of June after hitting a multiyear low in May, the WSJ reports. Pork-belly prices were at $2.15/pound on Wednesday, just shy of their highest level since last August.

This price increase is being driven by two big factors, per the WSJ:

• Regulation: On July 1, a new law came into effect in California requiring pigs to be given at least 24 sq. ft of pen space for their meat to be sold in the state. And, since deals for meat are usually negotiated well in advance and the law was challenged all the way to the Supreme Court (they just upheld it in May), this drove pork producers to hold off on buying new products until recently in fear of non-compliance. The state accounts for around 15% of US pork consumption.
• Seasonality: Also fueling the run-up is a seasonal shift; pork-belly prices normally rise in the summer when hog slaughters and pork production slow.

👀 Looking ahead… Savor that bacon double-cheeseburger from Whataburger while you can. Wholesale pork-belly prices are expected to remain higher, in large part due to the summer heat wave’s impact on livestock herds – and elevated prices could cause restaurants and supermarkets to begin cutting back on bacon-related promotions.