Biden says baby formula shortage to ease in weeks as U.S. imports more
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[May 14, 2022] By
Doina Chiacu and Susan Heavey
WASHINGTON (Reuters) -The U.S. baby formula
shortage should improve dramatically in coming weeks, President Joe
Biden and top officials said on Friday as the administration scrambled
to reverse a shortfall that hits lower-income Americans particularly
hard.
The United States is working with manufacturers to allow more
importation of baby formula, Biden told reporters in the Rose Garden.
"We’re going to be, in a matter of weeks or less, getting significantly
more formula on shelves," he said.
Food and Drug Administration Commissioner Dr. Robert Califf said earlier
on Friday the FDA will announce plans next week detailing how
manufacturers and suppliers abroad will be able to import their products
into the United States, as well as new options for U.S. companies.
The FDA is aiming for a streamlined process that will get more products
on U.S. shelves while meeting safety, quality and labeling standards,
Carliff said. The $4 billion annual U.S. baby formula market is
dominated by domestic producers, with imports limited and subject to
high tariffs.
"Our data indicates that in stock rates in retail stores are stabilizing
but we continue to work around the clock to further increase
availability," Carliff said on Twitter.
The Biden administration this week has come under increasing pressure to
address the problem, which has roots in a February recall of some
formulas by one of the nation's main manufacturers, Abbott Laboratories.
Many U.S. parents rely on baby formula. Fewer than half of babies born
in the United States were exclusively breast-fed through their first
three months, according to the Centers for Disease Control and
Prevention 2020 Breastfeeding Report Card.
Abbott's recall affected formulas, including certain Similac products,
made at a Michigan plant after complaints about bacterial infections in
infants who had consumed the products.
The shortages have been compounded by supply-chain snags and historic
inflation, leaving about 40% of baby formula products out of stock
nationwide, data firm Datasembly said.
President Joe Biden met on Thursday with executives from infant formula
manufacturers and retailers, pressing them to do everything possible to
get families access.
Retailers said their top ask is more flexibility on the types of formula
they can sell, while consumers need more flexibility on the types they
can buy, particularly through the 'WIC' program for low-income families,
the White House said.
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Empty shelves show a shortage of baby formula at a CVS store in San
Antonio, Texas, U.S. May 10, 2022. REUTERS/Kaylee Greenlee Beal
The nutrition program for Women, Infants and Children
is a federal assistance scheme administered by U.S. states. Biden
told reporters retailers like Walmart Inc were also looking for
flexibility about the amounts of formula WIC users could buy.
Abbott said on Friday it has shipped millions of cans
of infant formula powder into the United States from its Ireland
facility, particularly to serve consumers who use the WIC program
for low-income families.
In states where Abbott has the WIC contract, the company said it
will pay rebates on competing products if Similac is not available
through August.
About half of infant formula nationwide is purchased by participants
using WIC benefits, the White House said, and rules set by
individual states have a big effect on the availability and
distribution of infant formula.
"The shortage has taken an especially dangerous toll on women and
children from underserved communities," U.S. House Speaker Nancy
Pelosi said.
The House of Representatives next week will bring up a bill to grant
emergency authority to the WIC program to address supply-chain
disruptions and recalls by relaxing non-safety-related regulations,
she said in a statement on Friday.
Pelosi also said an emergency spending bill to address the infant
formula shortage would advance in the House.
In other measures on Capitol Hill, the House Oversight Committee
said it plans to investigate the four largest manufacturers of baby
formula and seek answers on how to ramp up production and avoid any
future shortage.
The committee said on Friday it sent letters seeking information to
Abbott Nutrition, Mead Johnson Nutrition, Nestle USA and Perrigo.
The shortage poses a threat to families throughout the country, the
letter said, "particularly those with less income who have
historically experienced health in equities."
Two other House committees - House Energy and Commerce and
Appropriations - planned hearings on the issue.
(Reporting by Doina Chiacu, Susan Heavey, Jeff Mason and Richard
Cowan in Washington and Ankur Banerjee in BengaluruEditing by
Heather Timmons and Matthew Lewis)
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