A shortage of baby formula in China’s major cities has left parents scrambling for months. With the country’s manufacturing capabilities still unable to meet demand, many are wondering how this could happen and what it means for their child’s health.
The “baby formula shortage end” is a problem that has been present for a while. The shortage could leave parents scrambling for months.
Manufacturers and dealers of baby formula say they are striving to resolve a long-standing supply shortage, but the difficulties faced by American families might last months.
Abbott Laboratories, the maker of Similac infant formula, said it is sending items from its Irish manufacturing to the United States while negotiating with the Food and Drug Administration to resume production at its Michigan factory. However, the corporation has said that items from the factory would not be accessible for many weeks.
Rivals have tried to speed up manufacturing, but transporting supplies to the correct areas remains an issue. Many retailers are rationing supply by imposing stringent order restrictions, while others are attempting to find replacements with limited success.
Meanwhile, everyone from angry parents to senators on Capitol Hill has demanded an investigation into why shortages that first appeared during the Covid-19 outbreak have been so tough to overcome. On May 25, a House committee will hold a hearing on the formula scarcity.
President Biden met with officials from Walmart Inc. and Target Corp., as well as baby-formula producers, on Thursday to discuss the issue, but a senior administration official refused to disclose specifics.
The Biden administration also mentioned a number of initiatives underway to solve the scarcity of infant formula. The USDA is urging states to let beneficiaries of the federally sponsored WIC program to spend their benefits for a broader choice of items in case the ones they desire are out of stock. Mr. Biden also requested that the Federal Trade Commission and state attorneys general look into price gouging complaints.
“We can’t supply answers,” said Don Clark, merchandising head at Giant Eagle Inc. “This has been more unpleasant from a customer mood standpoint.” When staples were scarce at the outset of the epidemic, the store had other alternatives and was able to adapt. He stated there aren’t many baby-formula brands to choose from right now. Purchase limitations are being evaluated, and new goods are being considered when feasible.
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In February, Abbott’s Sturgis, Mich., plant halted production as food safety officials looked into probable contamination of its Similac formula. A voluntary recall was also issued by Abbott. According to a source familiar with the situation, the manufacturing halt had a significant impact on production since it produced more than half of Abbott’s baby formula in the United States.
Meanwhile, as the epidemic continued to disrupt food supply chains, competitor Enfamil goods encountered delays in shipments and transportation early this year, the individual added.
According to Euromonitor, Abbott and Enfamil owner Reckitt Benckiser Group RBGLY 0.44 percent PLC were responsible for almost 80% of baby formula sales in the United States last year. Nestlé SA, which manufactures Gerber infant food, had a nearly 10% market share, while Danone SA, a French consumer goods company, had around 1%.
The FDA said that even without Abbott’s major facility operating, the nation’s baby formula makers are producing enough to fulfill demand. According to the FDA, the industry sold more formula in April than it did in the month preceding Abbott’s recall.
In a statement, FDA Commissioner Robert M. Califf stated, “We know that many customers have been unable to acquire baby formula.” “We’re doing all we can to make sure they have enough product when and where they need it.”
The government is speeding up review procedures to enable formula from other countries that fulfills its criteria to be imported, and to allow formula makers to alter production lines more swiftly to prioritize the kinds of formula produced. Abbott’s Michigan factory was one of the few that produced specialty formulations.
The FDA is also seeking to find out whether the shortages are the consequence of not enough of the proper items being delivered to various places, resulting in some areas having insufficient supplies while others have enough. The government also seeks to avoid consumer stockpiling or hoarding, which it believes is a contributing factor.
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Due to infant formula shortages, smaller and newer formula manufacturers have been able to gain popularity with consumers. However, regulatory obstacles hinder their ability to scale up manufacturing. In addition to the standard FDA clearances, facilities that make baby formula need additional FDA approvals.
The FDA requires new brands to provide extensive explanations of how the formula is produced, research on the nutrients it must include, and information of factory quality-control systems, among other things. According to the FDA, the agency inspects the plant, watches the process, and takes samples for nutritional and microbial analysis.
“Only facilities that have expertise and are currently producing basically complete nutrition products are in a position to develop baby formula products that do not offer major health hazards to consumers,” according to the agency.
Abbott said it is flying in newborn formula from its Ireland production every day and has converted several Ensure nutrition drink manufacturing lines to make ready-to-drink infant formula.
“We understand that millions of parents and caregivers throughout the globe rely on our formulas to feed their newborns and children, and we’re doing all we can to help,” an Abbott spokeswoman said.
The Biden administration also said that the FDA will announce additional efforts to promote infant formula imports in the coming days. According to the White House, the United States manufactures 98 percent of the baby formula bought by Americans.
Perrigo Co., PRGO 5.95 percent, a pharmaceutical and consumer goods company, operates two plants in the United States that produce baby formula for different brands, including Bobbie organic formula. According to Laura Modi, co-founder and CEO of Bobbie, it is the only licensed manufacturer that these smaller enterprises and retail brands may utilize.
Perrigo has been unable to increase manufacturing of Bobbie’s formula due to a focus on niche items with higher demand. Bobbie stopped accepting new purchases from customers on its website two weeks ago to accommodate demand from existing members.
It takes years to get into the sector, and it needs several clearances and upfront expenditure. That is why, according to Ms. Modi, there haven’t been many competitors to Similac and Enfamil in the last 40 years. “In recent years, there has been little motivation to expand production capacity since demand for newborn formula hasn’t increased significantly—there are only so many mouths to feed.”
Reckitt Benckiser, the producer of Enfamil, claimed its operations are open 24 hours a day, seven days a week, including Sunday shifts and any overtime necessary to assure round-the-clock employment. The corporation is also concentrating on sizes that enable it to give the most formula in order to boost volume.
In April, the firm said that sales of baby formula in the United States climbed by more than 30% year over year in the first quarter. According to CEOs, infant formula is a “sticky” product, which means that parents seldom switch formula unless their child is having problems.
However, as long as there are shortages, some parents will take anything they can obtain. Jo Ann Donovan, a mother of a five-month-old infant and a three-year-old child in North Massapequa, N.Y., said she and her husband check for formula every day on their way home from work, stopping by supermarkets. While out and about, her relatives and friends hunt for formula and buy it if they see it. Ms. Donovan said she hasn’t seen Similac, Enfamil, or retail brands in the last two and a half weeks.
Ms. Donovan, 36, who has been on formula for a week and a half, said, “It’s a nerve-wracking position to be in since that is the only option to feed them.” This week, she sent a message to her doctor, asking for guidance.
Stores are likewise attempting to have appropriate supplies on hand. Kroger has announced that infant formula would be limited to four containers. H-E-B LP, located in Texas, said it recently imposed a four-product restriction and that store brands are helping to cover certain gaps.
According to Leah McGrath, corporate dietitian at Ingles Markets, high-risk babies, such as youngsters with digestive disorders, are among the most susceptible to the ongoing shortages since they need specific formulas and can’t always switch brands.
“A lot of homebrew formulations are going around online, which is quite worrying,” she added. Parents may seek guidance from physicians, including acceptable alternatives, she noted.
—This paper was co-written by Saabira Chaudhuri, Lindsay Wise, Natalie Andrews, and Andrew Restuccia.
Annie Gasparro and Jaewon Kang may be reached at [email protected] and [email protected], respectively.
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The “baby formula shortage reason” is a problem that has been present for a while. The cause of the shortage is due to China’s decision to stop importing baby formula.
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