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Baby formula crunch in U.S. forces scramble to boost supplies -Breaking

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© Reuters. Kim Anatra examines the label on a product at a grocery shop as she struggles for formula for her five-month-old daughter Sienna amid nationwide shortages. Kim Anatra was in Houston (Texas), U.S.A, May 19, 2022. REUTER

(Reuters.) The United States has temporarily permitted foreign imports of formula from other sources, in order to address the national shortage. Abbott Laboratories (NYSE:) steps taken to restart production at the Michigan facility.

Reckitt Benckiser (OTC), Nestle, and Danone SA are all increasing their supplies of infant formula to the country.

This timeline shows how and what the crisis happened, as well as steps taken to address it.

Feb. 17

Abbott has recalled dozens of baby formulas including Similac and Alimentum, which were made at the Sturgis plant in Michigan. This recall was initiated after consumers reported four cases of bacteria infection in their infants.

Feb. 21

China’s custom officers warn parents not to purchase or consume certain Abbott baby and infant products.

Feb. 28

Abbott increases recall of Similac PM60/40 products due to a fifth complaint about a bacterial infected.

March 4

House Appropriations Committee Chairwoman Rosa DeLauro asks for an investigation https://delauro.house.gov/media-center/press-releases/chair-delauro-requests-investigation-fda-handling-abbott-powdered-infant into the FDA’s handling of the Abbott recall.

March 9

FDA has announced that the Salmonella Newport disease, previously part of the FDA’s investigation into complaints and illnesses, is now out of the public domain. It was determined by the FDA that not enough data is available to establish a causal link between the disease and powdered infant formulation.

February 22

FDA investigates Abbott Michigan’s facility and finds Cronobacter Sakazakii, a potentially harmful bacteria. It was found on some surfaces near infant formula production.

April 20

Abbott’s full year sales growth forecast has been cut due to the voluntary recall of infant formula products. But, the profit estimate is maintained. Abbott called the recall “short-term hinderance”.

April 28

Rosa DeLauro (House Appropriations Committee Chair) in testimony presents a report obtained from a whistleblower. This whistleblower had been employed at Abbott and filed a complaint to the FDA in September 2021.

April 29,

Abbott said it would release small quantities of the nutrition products on hold since February’s recall.

Mai 10

The following are major U.S. retailers Target Corp (NYSE;), CVS Health Corp(NYSE:), Walgreens Boots Alliance, (NASDAQ:), Kroger (NYSE) – Co place limits on the purchase of infant formula products

Abbott states that it prioritises formula production in other plants and ship formula from Ireland.

April 11

U.S. legislators plan to hold an hearing May 25th, the House Energy and Commerce Committee said. They called the situation “increasingly alarming”

Abbott states that the FDA approval will allow the Michigan facility to resume production within two weeks. But, Abbott also stated that the product would be available for purchase six to eight weeks later.

May 12,

To address the problem, President Joe Biden met with representatives from retailers and baby-product manufacturers such as Target and Walmart (NYSE:).

U.S. House Appropriations Committee has announced that FDA Commissioner Robert Califf will be testifying before the panel’s May 19 meeting to discuss the agency’s response to the shortage.

May 13,

U.S. House Oversight Committee intends to investigate the problem. It has written letters to four of the largest baby formula manufacturers, Mead Johnson Nutrition and Nestle USA, asking for information.

The U.S. Centers for Disease Control and Prevention (CDC), has closed its probe into Abbott. However, Abbott claimed that it had shipped many millions of baby formula powder cans to the United States via its Irish facility.

Baby formula manufacturer of store-brand Perrigo Co (NYSE:) Says shortages and increased demand could last the rest of this year.

May 16

According to the FDA, the United States will permit imports from countries that don’t normally sell infant formula.

Abbott and the FDA reach an agreement on steps to restart production at the Michigan plant.

May 17,

U.S. House Democrats present a bill that will provide $28 Million in emergency funds for the FDA to assist it with the shortage and strengthen supervision.

Nestle SA, SIX:), told Reuters that it is flying supplies to Nigeria from Switzerland and Netherlands. Reckitt Benckiser (the second-largest U.S. manufacturer of formula milk) is increasing baby formula production by 30%.

April 18

To help manufacturers get the raw materials they need to boost their supply, the U.S. president Biden invokes The Defense Production Act.

A spokesperson from the Retail Council of Canada stated that several Canadian retailers had placed limits on the purchase of baby formula products. She added, however, that the shortage has not affected the economy as severely.

April 19

Abbott and FDA expect to reopen their Michigan facility within one or two week, FDA Commissioner Robert Califf said.

April 20

According to U.S. shipping consultant Ocean Audit, Danone SA, a French manufacturer of baby formulas has increased shipments from Europe to America.

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