Posted 5/20/11 by Common Good
The latest issue of The Economist carries the revealing tale of Homa Dashtaki, an Iranian immigrant in California with a knack for making “fantastically good yogurt”—but whose attempt to live out the “American dream” by selling the product has been stymied by too much law:
After three months of operating (for about $300 in revenues a week, and no profit at all), [Ms. Dashtaki] encountered that other American tradition, red tape …. For although she had spent a year getting the required permits from Orange County, she had, it turned out, yet to make the acquaintance of the ‘milk and dairy food safety branch’ of the California Department of Food and Agriculture (CDFA). On a Saturday morning in March, Ms Dashtaki got a call and was told to shut down or risk prosecution.
Ms. Dashtaki’s research revealed that the regulations affecting her yogurt operation dated back to 1947—and were based on “the core assumption that all dairy products are made from raw milk, thus requiring elaborate processes that involve proper pasteurisation.” Because her yogurt is made with pasteurized milk, Ms. Dashtaki was hoping for a waiver—but she was told no, and that she would need to “set up a ‘Grade A’ dairy plant.”
The article continues:
Ms Dashtaki soldiered on. Then a licensing officer told her that the code does not permit milk to be pasteurised a second time. So ‘in order to comply with the order to re-pasteurise my already pasteurised milk, I would need to get exemption from the head of the CDFA,’ she explains. The tale thus went from Kafka to Catch-22.
Today Ms. Dashtaki’s yogurt enterprise “remains just a wispy little thing.” As she contemplates trying it in another state, or simply packing it in, the The Economist concludes: “It looks like California’s regulators have triumphantly saved their population from the threat of mass poisoning once again.”
Please share your thoughts on this article—and if you’ve got a story about how red tape has stymied your entrepreneurial efforts, we’d like to hear it. Thanks.