Leah Douglas

(Reuters). – The U.S. Department of Agriculture (USDA), said Tuesday that state officials are trying to determine whether imports from abroad of baby formula will be affordable to those families who rely upon government discounts.

According to USDA data, infants who were enrolled in Special Supplemental Nutrition Program for Women, Infants and Children (WIC), consumed 56% of the total US infant formula in 2018.

According to USDA (the program administrator), the enrollment in the program was less than half the U.S. infants.

Whether the imported formula will be made available to WIC participants is “an emerging question,” said Brian Dittmeier, senior director of public policy at the National Women, Infants and Children Association.

WIC customers are restricted to purchasing formula only from companies that have a contract with their territory or state. WIC recipients cannot buy formula from any other company than the one they contracted with, except if a physician prescribes a special formula. WIC recipients can get rebates from these companies to reduce the costs of formula.

Abbott Laboratories (NYSE:) The largest formula maker, which saw its Michigan plant close due to possible bacterial contamination has 55% of WIC contracts. Nestle SA (SIX 🙂 and Reckitt Beckiser Group’s Mead Johnson Unit share the remainder.

Abbott said that rebates will be honored even if customers purchase different products. Reckitt and Nestle did not respond immediately to inquiries about whether or not they would also pay these rebates.

Operation Fly Formula, the Biden administration’s attempt to compensate the shortfall with imports, sent its first shipment to Europe Sunday. It contained specialty formulas that are available to WIC-eligible infants.

According to the official, states will decide whether future imports are allowed for WIC infants.

According to the White House: The United States usually produces 98% of all the formulas it uses domestically.