Wednesday, June 27, 2012

The Chobani Paradox

Sally and I are addicted to Chobani no-fat yogurt, which I buy by the case whenever I am near BJ's Wholesale Club. Apparently we aren't the only ones, because the ingenious Turkish immigrant behind this wonderful, creamy stuff is--are you ready?--running out of milk. Though he's located in bucolic upstate New York, the local diary farmers are so burdened by property taxes, regulations, and their co-op marketing system that they see no reason to increase production. As a result, Chobani is opening a new plant in--are you ready?--Idaho. Yes, land is cheaper in Idado, taxes are lower, and the dairy farms are newer and not tied into co-op contracts, so they can expand to meet demand.

So the East Coast has outsourced its yogurt. Sounds like a parable for the United States today. Blue skies! -- Dan Ford


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