Breezy Explainer: Why is there a baby formula shortage in the US?

Major pharmacies in the US have restricted sales of baby formula as a response to the worsening shortage. Here’s why.

Why is there a baby formula shortage in the US?

Big chains of pharmacies including CVS and Walgreens are imposing limits on the number of cans of baby formula people can buy at a time. The shortage escalated after a key Abbott factory shut down in February and started recalling packages due to contamination. Abbott is the manufacturer of a top brand in the industry- Similac. Additionally, it is also the main supplier of baby formula to several state programs aimed at women and children from low-income backgrounds. The company stated that it is working with the regulators to re-open the plant.

Abbott added that it has been sending additional shipments from a plant in Ireland for addressing the baby formula crisis. “We know that our recent recall caused additional stress and anxiety in an already challenging situation of a global supply shortage. We are working hard to help moms, dads, and caregivers get the high-quality nutrition they need for their babies,” assured the company in a statement.

It has been building up since 2021

Earlier this year, Abbott issued a recall for certain batches of powdered formula. The move was following reports that four babies became sick, including two who died after being fed from cans that came from the factory. The US Centers for Disease Control and Protection (CDC) stated that they are investigating a possible link. However, testing found that the strain of bacteria from the factory and babies was not the same. Additionally, the Food and Drug Administration (FDA) criticized the company for unsanitary conditions in the factory. It has been building up since 2021 following supply chain issues. The situation took a turn for the worse in April when parents raced to stock up on baby formula.

As of 24 April, the average out-of-stock rate across the country had jumped to 40%, up from just 30% a few weeks earlier – and 11% in November, according to Datasembly.

There were 26 states with out of stock rates higher than 40% – compared to just seven states three weeks earlier, it said.

“Due to increased demand and various supplier challenges, infant and toddler formulas are seeing constraints across the country,” stated Walgreens. “We continue to work diligently with our supplier partners to best meet customer demands,” added the major pharmacy chain. The pressure on the Biden administration is intensifying as people and Republicans are calling for a response on the issue. Several Republicans including Senator Tome Cotton are calling it a “national crisis”. Additionally, Rosa DeLauro, Democratic Representative stated concerns that the FDA is responding “far too slowly”.

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