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Fri 13 May, 2022 07:36 am
Robert Reich
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One root of the devastating baby formula shortage? Market consolidation.
40 percent of leading baby formula products were out of stock in late April, leading businesses to restrict sales and desperate parents to drive hours away, ration what they have left, and pay exorbitant prices as they struggle to find ways to feed their children. One Alabama mother, for instance, was only able to track down four small cans of formula — in New York, for $245.
It’s a national crisis, plain and simple. It was sparked by a recall of Similac, made by Abbott, after at least four babies were hospitalized and at least two died from bacterial infections. But the FDA recalls defective products all the time. Why did this one have such far-reaching consequences?
Consider this. As of 2018, 89 percent of the country’s baby formula market is dominated by just four companies: Abbott (producer of Similac), Reckitt Benckiser (producer of Enamel), Nestle (producer of Gerber), and Perrigo (producer of store-brand formula). When a market is concentrated so heavily, it can’t absorb supply shocks — like the one brought on by the Similac recall.
The recall stems from a Sturgis, Michigan plant that has been riddled with problems for years. According to a whistleblower complaint, plant officials consistently falsified records, including product test results; didn’t repair failing and dilapidated equipment, allowing for bacteria to enter the system; ignored requests from employees to fix faulty testing procedures and defective equipment; and covered up the wide range of blatant violations. The plant was subject to an FDA audit, which failed to discover any of the plant’s dangerous violations.
Since that audit, Abbott has spent upwards of $5 billion on stock buybacks. Wouldn’t that money have been better spent repairing the Sturgis plant’s defective equipment and ensuring it was in compliance with safety regulations?
As a result of Abbott’s negligence and market dominance, millions of parents are now scrambling to figure out how to feed their children. We need tougher antitrust enforcement to rein in the market power of corporations like these and prevent another crisis.
Abbott says it will be at least two months before baby formula from shuttered plant hits shelves
They'll have to use what they did before it was available.
@edgarblythe,
When I saw the header I was immediately composing a response, before I even clicked on the page: "Not enough manufacturers!" Don't you just love late stage capitalism?
Just saw this on facebook
@edgarblythe,
That's great news. Wonder why Canada doesn't have a shortage.
@Mame,
They have teats up there.
@coluber2001,
coluber2001 wrote:
They have teats up there.
… and boobs down here, right?!
Vehicle register...seriously.. I just submitted online my vehicle revise renewal. After paying it said it could take 25 days due to supply shortage s.
What the heck? All I am getting is a piece of paper and a sticker.. Is this the new excuse?
@Mame,
Mame wrote:
That's great news. Wonder why Canada doesn't have a shortage.
Probably because they keep the factories clean. American companies aren't too interested running all that clean business stuff, it slows production and that means losing money..........
@Linkat,
That sounds a bit daft.
Over here we have road tax which has to be paid either annually or every six months which sounds similar.
We used to be sent a paper disc to put in the windscreen.
Not any more, it's all done on a cetntral register, no disc, nothing, just a virtual receipt online.
@Mame,
Mame wrote:
They'll have to use what they did before it was available.
The problem with that is once a woman's milk has dried up that's it.
If they stopped breastfeeding only a few months ago they can only use formula.
Back in the day when we relied on wet nurses, the only other option was goat milk, which is why female goats are called nannies.
My brothers and sisters after the two oldest, grew up on cans of Pet evaporated milk. Mix it with the prescribed amount of water, warm it, feed it. Cheap.
@izzythepush,
This is paid every two years. And there is this tiny sticker that has has a particular color with the month and year on it ... You out it on your plate so it is easy for the police to determine if your registration has expired. That gives them a reason to pull you over and you can be ticketed for it.
The paper part I agree because even in this circumstance if I don't get the sticker and paper in time, and get pulled over then I can simply show them the confirmation on my phone that I have the registration. Same that the police have the capability to look it up
@izzythepush,
There are also some women for medical reasons that cannot as well
@Linkat,
Here, the tax is paid annually, from the account, by direct debit.
The number plate remains, even if you move house (but then the stamp of the new authority is put on it).
Twice a year, the car has to undergo a technical inspection - the stamp on the number plate then indicates the next inspection.
@Linkat,
Our tax discs used to be like that.
@izzythepush,
Nonsense. There was a time before formulas. Many Canadian children were raised on Carnation milk. They can get their vitamins through pablum and food. I made my children homemade baby food from dinners I cooked for myself. A lot of hysteria about not much. Puree a couple of carrots, a few peas, some chicken... mash up a banana. I'm sure a lot of mothers here (A2K) did the same.
@Mame,
With a new born whose mother died in childbirth?
Carnation and mashed carrots, really?
My mother raised eight children on Pet condensed milk from birth. I don't know what foods she introduced them to at first. Likely some type of cereal made specifically for babies. I think I recall seeing the Gerber's baby face on some of it. I think you could add a bit of it to the milk the baby drank.
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