The U.S.’s baby formula shortage is being blamed primarily on a massive recall. However, experts claim that the products have been exposed to this kind of crisis for decades due to decades-old policies which have allowed a few companies to dominate the market.
These government rules, which are meant to ensure safe and affordable formula, are being reexamined as President Joe Biden rushes for formula imports from Europe.
“There is perfectly safe and good baby formula all over the globe. “We just don’t know where it is,” stated Bindiya Vakil (CEO of Resilinc), a supply chain analytics company. We’ve caused this problem by failing to set up infrastructure for imports.”
Abbott Nutrition announced Tuesday that it plans to restart its Michigan plant on June 4, and start shipping new formulas to stores three weeks later. This factory is the largest in America and has been shut down since February. It supplies popular formulas as well as specialty formulas for children with special medical conditions.
According to the company, regulators granted permission for 300,000. This product was not recalled in February.
Three hearings will be held by lawmakers on this issue, with testimony from outside experts, government regulators, and company executives. This attention could lead to changes in government safety and contracting regulations that were established in the 1980s. It favors large U.S. companies that can navigate the complicated requirements.
The only American product that has not been affected by globalization is baby formula. 98% of its supply is made in the USA. According to industry figures, Abbott, Nestle, Nestle, and Perrigo account for about 90% of the market. Similar trends are evident in the food industry’s consolidation.
However, the Biden administration didn’t include infant formula in its last year-long initiative to highlight dangerously concentrated industries such as airlines, prescription drugs, hearing aids, and internet services.
Tuesday’s announcement by the Federal Trade Commission indicated that it had launched an inquiry into the shortage of formula, seeking to find out about any fraudulent or deceptive business practices. It also stated that it aims to provide information on the causes of the concentration in baby formula markets and weak supply chains.
Food experts claim that strict formula regulations established by the Food and Drug Administration have limited competition.
The FDA was authorized by Congress to enforce strict nutritional standards for all formula sold in the United States. This authority began in 1980. It also imposes additional research and manufacturing standards that are not widely used elsewhere. After some babies became ill from formulas that were not up to standard in the 1970s, these changes were made.
Wendy White, a Georgia Tech food safety expert, stated that the U.S. has the most stringent food safety guidelines and America has the strictest guidelines anywhere in the world.
