Inflated Formula 🍼

by 13 May, 2022

Inflated Formula

The widening effects of the supply chain on the United States economy gets darker and darker. It’s a known fact that citizens of the US are struggling to pay for gas, groceries, and everything in between. People are facing major delays when it comes to car deliveries, and companies are having problems obtaining the parts necessary to provide their products.

Sadly, one fitting example of this is the current shortage in baby formula. It hasn’t been explained yet, but baby formula has simply been missing off of shelves, leaving parents in a scramble. Producers are failing to distribute, and demand is super high. Abbott Labs, one of the larger producers of baby formula, is currently selling formula made in Ireland as they said it would take weeks for their Michigan plant to get formula on the shelves. Abbott’s Michigan branch was closed due to possible contamination, and this was 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, and that’s the key there. 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. This might be the best indication of what our economy is going through; the citizens in the world’s greatest superpower are unable to buy baby formula for their infants. Expect the earnings of Abbott Laboratories and Perrigo to be interesting with the shortages they are going through.

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.

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