BABY FORMULAS SHOUD NOT BE LIMITED TO 4 U.S. COMPANIES

 

…This is the Abbott baby formula plant that was shutdown in Michigan

 

Other globally approved companies should be able to sell baby formulas in the U.S.

 

It is amazing that “the wealthiest, and most prosperous nation on the planet” is struggling to feed its babies.  The main reason for the shortage is that one of the big formula producers, Abbott Laboratories, shut down a manufacturing plant in Michigan in February.  This was because of a potential bacteria outbreak that may have severely sickened four known babies.  (There may have been much more than the four known babies.)

Even before Abbott’s shutdown, Covid related problems in the global supply chain had “strained” formula supplies, many of which come from overseas, (say China?)

All of these problems were made worse by the monopoly of the industry being run by Abbott and only three other U.S. companies.

The other problem is that half of all formula sales go through a federal program called Women, Infants, and Children (WIC), which provides vouchers to low-income families.  Abbott and other large, U.S. producers offer massive discounts to become the chosen suppliers.  This has also resulted in a massive market concentration.  That’s why only four companies control 89% of the U.S. market.

But the most important part of the story is probably, “America’s protectionist policies.”  As an example, most of the formulas made in the European Union “is illegal to buy here”.  This is even though it’s just as nutritious, if not better, than the American formulas.  This trade agreement was forged through President Trump’s administration, and it “actively discourages formula imports from our largest trading partner, Canada”.  In fact, the foreign made formulas are slapped with large tariffs, if they are allowed to be shipped here.

Even the Wall Street Journal says: “Global trade has its uses, including increasing competition and supply.”

TheDispatch.com says: “The federal government should immediately eliminate barriers to import infant formulas”  this is so that Americans can always buy it from other, well-regulated countries.  If it’s good enough for Europe, Canada, Australia and the like, “it’s good enough for America”.

The WIC vouchers should be valid for all approved formula brands, regardless from the country where they were manufactured.

Unfortunately, this won’t put formula on the American shelves tomorrow.  But it would be a way to prevent the current nightmare from happening again.

Copyright G. Ater 2022