Global Firms are Boosting Baby Formula Supplies

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Global Firms are Boosting Baby Formula Supplies
18 May 2022
5 min read

News Synopsis

As the US faces a scarcity of baby formula, international companies are increasing shipmentsNestle, the maker of Gerber, said it was flying in more supplies from the Netherlands and SwitzerlandReckitt Benckiser, which makes Enfamil and has factories in the United States, also announced a 30 percent increase in output this year. The announcement comes after US authorities cautioned that resolving the shortage might take months.

Abbott Laboratories, the largest US provider of powder infant formula brands like Similac, reached an agreement with authorities on Monday to reopen a critical Michigan factory. Officials said it would take weeks for products to return to store shelves after the reopening.The Sturgis business has been closed since February when bacteria was discovered in the facility, triggering product recalls. 

The closure and recalls exacerbated a shortage that had been brewing for months owing to supply chain and logistics delays, and it spiralled out of control as parents hurried to the stores to fill up.

The White House has been pressed to act on the situation. The US Food and Drug Administration announced on Monday that it was working to remedy the problem, including loosening standards to allow for more international exports. "With increased production by other manufacturers, forthcoming import actions, and the potential for Abbott Nutrition's Sturgis facility to resume production in the near-term, the FDA expects supply to continue to improve over the next couple of months," it said.

 

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