Formula Crisis Brings Foreign Competition To Complacent U.S. Industry
Bubs Australia and Kendamil are heading to American store shelves after Abbott Nutrition’s plant shutdown and recall exacerbated a baby formula shortage.
Bubs Australia and Kendamil are heading to American store shelves after Abbott Nutrition’s plant shutdown and recall exacerbated a baby formula shortage.
The White House is facing new questions about whether it acted quickly enough after the leading baby formula plant shut down in February.
In the first year of COVID we became armchair experts in infectious disease. The next, we earned our PhD’s in global supply chains, chalking up the months-long wait times for new screen doors and patio furniture to that container ship stuck in the Suez Canal. Most recently, it’s baby formula that’s been affected by disrupted global supply chains.
One is product shortages, as with the shortage of personal protective equipment early in the pandemic and recently with infant formula. But are we willing to pay higher prices for less reliance on the global supply chain?
Economists and other market watchers often look at signals from the transportation sector, especially trucking (which carries a significant majority of US freight) for insight into the direction of the broader economy.
The global supply chain issues the Federal Reserve has been worried about plagued the country’s busiest ports last year. A new report from the World Bank and S&P Global Market Intelligence ranked the efficiency of more than 350 ports worldwide based on how long ships had to wait at port last year. Los Angeles and Long Beach, which handle more than 40% of all maritime imports to the U.S., came in dead last for efficiency.
A day after invoking the Defense Production Act to help alleviate a nationwide shortage, administration officials had few answers for how the law would lead to more supply.
The fast food giant McDonald's has ceased its operations in Russia, two months after temporarily closing 850 branches across the country. The company said Russia's 'humanitarian crisis' in Ukraine, as well as unstable market conditions triggered by the conflict, are behind its decision to stop selling hamburgers there. The first McDonald's in Russia was opened in Moscow in 1990, and was widely seen as a symbol of western democracy.
Emily Black of Pikesville set out one afternoon this week to buy formula for her infant son. Four hours and five stores later, she still hadn’t found it.
A new government website is helping families find infant formula amid a national shortage that has parents across the U.S. scouring local store shelves in search of nutrition for their children.
Ashley Smith
Public Affairs Coordinator
INFORMS
Catonsville, MD
[email protected]
443-757-3578