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U.S. NEWS Wednesday 25 May 2022
U.S. safety, savings rules set stage for baby formula shortage

By MATTHEW PERRONE with the FDA before selling
WASHINGTON (AP) — A a new formula, altering in-
massive recall is getting gredients in an existing one
most of the blame for the or making major manufac-
U.S. baby formula short- turing changes. The result is
age, but experts say the only the biggest manufac-
products have long been turers have plants and pro-
vulnerable to this type of cedures that comply with
crisis due to decades-old federal rules. And would-
policies that have allowed be competitors have little
a handful of companies to incentive to enter the field,
corner the market. given the declining U.S.
Those government rules birth rate.
— aimed at assuring safe, "You have to have a lot of
affordable formula — are expertise, a lot of resources
getting renewed scrutiny and a lot of research dol-
as President Joe Biden's ad- lars," White said.
ministration rushes to import There are other hurdles
formula from Europe. for foreign manufactur-
"There's perfectly good and ers looking to compete.
safe baby formula avail- The U.S. has long imposed
able around the world. We tariffs and quotas on dairy
just don't have access to Shelves typically stocked with baby formula sit mostly empty at a store in San Antonio, Tuesday, imports from abroad, in-
it," said Bindiya Vakil, CEO May 10, 2022. cluding Canada, in order
of Resilinc, a supply chain Associated Press to shield American milk pro-
analytics firm. "We've cre- ducers from competition.q
ated this problem by not part of a Biden adminis-
setting up an infrastructure tration initiative last year
for imports." spotlighting dangerously
Federal regulators are ex- concentrated industries, in-
pected to soon allow Ab- cluding prescription drugs,
bott Nutrition to reopen the airlines, hearing aids and
Michigan plant that's been internet services.
closed since February due The Federal Trade Commis-
to contamination prob- sion announced Tuesday
lems. The factory is the larg- that it has launched an in-
est of its kind in the U.S. and quiry into the formula short-
its shutdown — combined age, seeking information
with pandemic-related on any deceptive or fraud-
supply chain problems — ulent business practices re-
hobbled supplies of popu- lated to it. The agency said
lar formulas and specialty it also aims to shed light on
formulas for children with what led to the concentra-
rare medical conditions. tion in the baby formula
Lawmakers will hold three market and the weak sup-
hearings on the issue this ply chains.
week, calling on company Food experts say strict for-
executives, government mula regulations set by the
regulators and outside ex- Food and Drug Administra-
perts to testify. The atten- tion have long limited com-
tion could spur changes petition.
to government safety and Beginning in 1980, Con-
contracting rules that have gress gave the FDA author-
been in place since the ity to rigorously enforce the
1980s and favor big U.S. nutritional content of all
manufacturers that are formula sold in the U.S., im-
capable of navigating the posing extra research and
complex requirements. manufacturing standards
Baby formula is one of the that have few equivalents
few American products es- worldwide. The changes
sentially unaffected by glo- came after some babies
balization, with 98% of the were sickened by deficient
supply manufactured do- formulas in the 1970s.
mestically. Four companies "They are pretty much the
account for roughly 90% of strictest food safety guide-
the market: Abbott, Reckitt, lines in the U.S. and Amer-
Nestle and Perrigo, accord- ica has some of the strict-
ing to industry figures. That est guidelines in the world,"
consolidation mirrors similar said Wendy White, a food
trends across the food in- safety expert at Georgia
dustry. Tech.
But infant formula wasn't Companies must consult