Here’s How The Biden Administration Plans To Tackle The Baby Formula Shortage

Topline

The White House announced new actions Thursday to make baby formula more available, as a major shortage leaves parents struggling to find food for their infants due to inflation, supply chain issues and the closure of an Abbott Laboratories facility due to alleged links between formula produced there and deadly bacterial infections in young children.

Key Facts

President Joe Biden spoke with formula manufacturers and retailers Thursday, and discussed ways to make formula more available to parents, according to the White House.

The U.S. Department of Agriculture will make more types of formula available under its Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program for low-income women and children, as about half of all formula in the U.S. is purchased with WIC benefits.

The USDA is also encouraging states to relax requirements that retailers keep a certain amount of formula in stock, offering “relief to retailers” and allowing companies to manage their inventories to meet demand, according to the White House.

The Department of Justice and the Federal Trade Commission will also devote more resources to monitoring price gouging and targeting predatory behavior in the infant formula market, following reports individuals are purchasing formula and selling it online for several times the listed price.

The White House is also working with international trading partners, including Mexico, Chile, Ireland and the Netherlands to source additional formula from overseas.

The Food and Drug Administration will announce steps it is taking to import the formula in the coming days, according to the White House.

Big Number

43%. That was the nationwide out-of-stock percentage for baby formula during the first week of May, according to Datasembly, which tracks product data for retailers. The percentage rose from 30% at the start of April.

Key Background

The shortage of infant formula is rooted in supply-chain issues from the Covid-19 pandemic and rising inflation, but the shuttering of an Abbott Laboratories facility in Sturgis, Michigan, in February exacerbated the limited supplies. Abbott and the maker of Enfamil, Reckitt Benckiser Group, accounted for about 80% of baby formula sales in 2018, according to Euromonitor. The FDA warned consumers not to purchase some formula produced in the facility on February 17, as it investigated reports that several children who contracted serious bacterial infections from Cronobacter sakazakii and Salmonella had links to the formula. Two of the infected children later died, with cronobacter a possible contributor to the deaths, according to the FDA. Abbott issued a voluntary recall and closed the facility the same day as the FDA warning, and the plant remains closed nearly three months later. In March, the FDA released preliminary findings of its investigation, and found a history of contamination with the cronobacter bacteria—eight instances between fall 2019 and February 2022—and a failure to maintain clean surfaces used in handling and producing the formula. Abbott said in a statement last month that samples of formula from the Sturgis, Michigan, facility separately tested by Abbott and the FDA did not test positive for cronobacter or salmonella, though the FDA noted in a statement that there were a limited number of samples tested.

Tangent

Rep. Rosa DeLauro (D-Conn.) released a whistleblower complaint last month that showed a former Abbott employee documented concerns about the Michigan facility and sent them to the FDA in October—months before the FDA began inspecting the plant and issued a recall. DeLauro said in a statement the FDA did not interview the whistleblower until late December, raising questions about how long it took the FDA to respond to the claims.

Further Reading

Baby Formula Shortage: How Safety Concerns At An Abbott Facility Fueled A Crisis (Forbes)

Baby Formula Shortage Could Last Months (The Wall Street Journal)

Source: https://www.forbes.com/sites/annakaplan/2022/05/12/heres-how-the-biden-administration-plans-to-tackle-the-baby-formula-shortage/