Last week we discussed the shortage of Baby Formula sweeping the nation. The cause of the shortage has been producers failing to distribute while demand remains very high. More specifically, Abbott Labs, one of the larger producers of baby formula saw its Michigan branch closed due to possible contamination: a big hit as the factory is responsible for half of the company’s baby formula. This has caused many pharmacies to limit the amount that you can purchase, and this problem has gotten big enough to the point where Congress is going to hold a hearing to find out more. The FDA is looking into opening up imports more by speeding up their review process. The baby formula needs to be vetted thoroughly to meet the standards set by the country, and this prevents some facilities from getting the green light for production.
Most recently, Europe has stepped up to the plate, delivering 78,000 pounds (35,380 kg) of specialty infant formula, as part of the White House “Operation Fly Formula”. The Operation came as President Biden’s administration invoked the Cold War-era Defense Production Act to help increase supplies and stock empty shelves with 1.5 million containers of infant formula. The shipment from Europe appears substantial, as White House National Economic Council Director Brian Deese explained: “There’s about enough formula on that plane, specialty medical grade formula, for about a half a million bottles. That’s about 15% of the overall national volume this coming week”.
What do you think about the shortage? And will the air operation hold off long enough for the factory to get back to production?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.