Two days ago I read a note "Rotten Tomatoes" in Slate. One sentence stuck in my mind:
The Big Five have enormous operations, but tight regulations and water shortages make it impossible for them to build new canneries. So they must run their existing plants with a frightening efficiency. The California canneries operate 24/7...What? It is impossible to build new factories in California? As I am learning more about the food industry, factories are built and operate 20 - 30 years maximum, and then they are abandoned and replaced by new ones. This morning I toured a former chicken slaughterhouse complex at Har Tov, once the largest of this country. About ten years ago it was abandoned and replaced by new and more modern plants in the Negev. The place have subdivided and rented to ten medium size factories and several workshops. My client rented a ruined factory and intends to produce specialty meat products, sausages, smoked meat, etc. If California forbids the erection of new agroindustrial plants, then the whole sector is doomed to die and move to Central America. My mentor Chaim Ben Ezra (with his Sepharadi friends of Benny Gaon Holdings) has erected several tomato paste plants in the Dominican Republic, Nicaragua, Cuba, etc. Now I understand that he is going to win big.
I already learned that the permitting of a new oil refinery takes up to twenty years in the United States, in the best of the cases. The refining industry is frozen. Now I learn that the same situation reigns in the tomato paste industry, The Luddites rule in California and the State is agonizing.