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US faces baby formula ‘crisis’ as shortage worsens

Major US pharmacies have restricted baby formula sales in response to a growing shortage of specialty milks.

CVS and Walgreens are among the big chains that have imposed limits on how many cans customers can buy at a time in recent weeks.

Shortages worsened after Abbott – maker of top brand Similac – closed a key factory and prompted a recall in February after contamination was found.

Pressure is building on the Biden administration to respond to the issue.

Republicans like Senator Tom Cotton have called it a “national crisis” that the White House must address.

Democratic Rep. Rosa DeLauro also said she was concerned that the Food and Drug Administration – which regulates formula makers – was “far too slow” in responding to the issue and to reports of problems at Abbott’s Michigan factory, which remains closed.

Abbott — the main supplier of baby formula to many state government programs for low-income women and children — said it was working with regulators to reopen the factory.

It has sent additional shipments from a plant in Ireland to try to address the issue and expects shipments from the country to double this year, it added.

“We know that our recent recall has caused added stress and anxiety in an already challenging global supply shortage situation,” the company said in a recent statement.

“We work hard to help moms, dads and caregivers get the quality nutrition they need for their babies.”

Abbott issued the recall of certain batches of infant formula in February after reports that four babies who had been fed the milk became ill, including two who died.

The Centers for Disease Control and Protection said they were investigating a possible link, but testing so far had revealed the strain of bacteria detected at the factory didn’t match that found in the sick babies.

Separately, the FDA criticized Abbott for unsanitary conditions.

But the shortage has been building since last year, before these issues were dated, according to research firm Datasembly, which tracks 11,000 stores across the US.

The situation continued to deteriorate over the past month as publicity for the issue grew and parents rushed to stock up.

As of April 24, the average out-of-stock rate across the country had risen 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 more than 40% — compared to just seven states three weeks earlier, it said.

“Due to increased demand and various challenges for suppliers, infant and young child formulas are restricted across the country,” major pharmacy chain Walgreens said in a statement.

“We continue to work diligently with our supplier partners to best meet customer needs.”

Walgreens has limited families to buying three cans at a time – similar to other retailers. A 12.4-ounce can of formula usually lasts about 15 bottles — or just a few days.

Companies that make items like baby formula — where demand is typically constant over time — have trouble catching up when disruptions hit, said Rudi Leuschner, director of the Masters in Supply Chain Management program at Rutgers Business School.

And when parents rush to shop while stories of empty shelves spread, it only makes the problem worse, he warned.

“It’s not a situation where you can just pull away from it,” he said. “It was designed to run at one speed.”

While this year’s lack of formulas could show the vulnerability of the supply chain, it may not be enough to make a business case for backup stocks, Prof Leuschner added.

Overall, birth rates are declining, reaching their lowest level on record in the US in 2020. Studies have also found that the consumption of infant formula has declined in favor of breast milk.

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