Here’s what to know about how the U.S. get into its infant formula mess.
A woman shops for baby formula in Annapolis, Md., on May 16. Only a handful of companies supply baby formula in the country, a factor that has contributed to the current shortages being experienced in parts of the country.
These companies operate a relatively small number of formula factories in order to maximize efficiency and keep their production costs low. Other parts of the food chain have similar vulnerabilities. When the giant meatpacking company JBS was hit by a ransomware attack last year, 20% of the nation’s beef and pork slaughtering capacity FDA Commissioner Robert Califf acknowledged that concentration in the formula industry deserves more scrutiny.
“Because the WIC program is such a large purchaser — it buys about half the formula on the market — once a company has an exclusive deal to service a state, competitors don’t have a financial incentive to compete in that state,” Kelloway says.
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