‘4 companies have gained control over the formula market’: Lawmakers and women’s health advocates debate solutions to baby-formula shortage

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An overly consolidated market and lack of support for breastfeeding moms are some of the factors contributing to the formula shortage, experts said.

The U.S. Senate’s Competition Policy, Antitrust, and Consumer Rights Subcommittee held a hearing this week to look at the baby-formula market in the U.S., and broader issue of supply-chain issues.

A national infant formula shortage has forced some desperate parents to drive long hours and scour stores and websites to find a formula for their babies. For the seven days ending May 29, 73% of baby formula products nationwide were out of stock, according to Datasembly, a retail-tracking group. And in some states such as California and Georgia, the out-of-stock rates were at more than 90%.

One example: more than 95% of ingredients in generic drugs come from China, and their supply could easily be disrupted by diplomatic issues between the U.S. and China, Lynn said. “Today’s producer concentration and any resulting problems are primarily the result of federal government policy, not any sort of natural, private-market failure,” Lincicome told the hearing.

Abbot, Mead Johnson Nutrition and Nestlé USA did not respond immediately to a request for comment. A Perrigo spokesman said the company’s products constitute about 8% of the total infant formula market. “The Company is doing everything possible to provide as much infant formula to its retail partners during this challenging time,” the spokesman told MarketWatch. “During the three months ending March 31, 2022, we shipped 37% more formula vs. the same period last year.

Carney said breast milk is the optimal choice for infant nutrition, but not all mothers are able to support their babies this way. Many mothers set out to breastfeed but have problems doing it, either because of a lack of educational support or other road blocks, such as going back to work.

 

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CatoPress '... the onerous process to become a baby-formula manufacturer in the U.S. has resulted in only one new manufacturer successfully registering with FDA in the past 15 years'

UNITED STATES OF CORPORATE SCAMS

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Another monopoly!

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