Many parents are hunting for infant formula because of a combination of short- and long-term problems that has hit most of the biggest U.S. brands.
Millions of babies in the U.S. rely on formula, which is the only source of nutrition recommended for infants who aren’t exclusively breastfed.
Here’s a look at what’s behind the problem, as well as the situation in the Canadian marketplace.
What are the causes?
Ongoing supply disruptions have combined with a recent safety recall to leave many pharmacy and supermarket shelves bare.
The problems began last year as the COVID-19 pandemic led to disruptions in labour, transportation and raw materials — economy-wide issues that didn’t spare the formula industry. Inventory was further squeezed by parents stockpiling during COVID-19 lockdowns.
WATCH | White House keenly aware of issue, trying to arrange workarounds:
U.S. stores running out of baby formula amid recall, supply disruptions
13 hours ago
Duration 4:12
Increased demand, supply chains disrupted by the pandemic and a recall on powdered baby formula issued by the U.S. Food and Drug Administration in February have all contributed to a nationwide shortage.
Then in February, Abbott Nutrition recalled several major brands of powdered formula and shut down its Sturgis, Mich., factory when federal officials began investigating four babies who suffered bacterial infections after consuming formula from the facility.
Abbott is one of only a handful of companies that produce the vast majority of the U.S. formula supply, so their recall wiped out a large segment of the market.
What is in baby formula?
Most formulas contain protein from cow’s milk that’s been altered to be easier to digest and enhanced with extra nutrients needed for growth and development. The Food and Drug Administration sets specific nutritional requirements, including minimum amounts of protein, fat, calcium and a number of vitamins. Formula makers achieve those levels by adding various sugars, oils and minerals.
The formulas are designed to mimic breast milk, though studies have repeatedly shown better health outcomes for babies who are breastfed.
Ashley Maddox of Imperial Beach, Calif., feeds her five-month-old son, Cole, with formula she bought through a Facebook group of mothers in need. (Gregory Bull/The Associated Press)
Why formula is essential for many families
Health professionals recommend exclusively breastfeeding babies until they are six months old. But federal figures show that only one in four are relying solely on breast milk at that age.
Mothers face a number of challenges to long-term breastfeeding, including returning to work and finding the time and equipment needed to pump breast milk. About 60 per cent of mothers stop breastfeeding sooner than they had planned, according to the Centers for Disease Control and Prevention.
How U.S. retailers are handling the situation
Several national chains have limited the number of containers customers can purchase in stores and online. For CVS and Walgreens, the limit is three per customer. Target limits purchases to four per person when buying online.
Amazon said Thursday it is working to keep the products available on its website and monitoring third-party sellers for price-gouging.
Empty shelves show a shortage of baby formula and a notice about quantity limits at a CVS store in San Antonio, Texas on May 10. (Kaylee Greenlee Beal/Reuters)
“If we identify a price that violates our policy, we remove the offer and take appropriate action with the seller,” a company spokesperson said in a statement.
Is the situation the same in Canada?
For the most part, no. Retailers here tell CBC News they have not been hit as hard by the shortages, though the national spokesperson for the Retail Council of Canada said she’s heard from one retailer that has struggled to keep a steady supply of formula available since 2021.
For Loblaw, that recall has affected its ability to stock certain kinds of formula, but the company said that it’s found alternatives.
WATCH | Gaps in supply, but shortages not as widespread in Canada:
Baby formula shortage in the U.S. affects Canadian parents
3 days ago
Duration 2:02
A baby formula shortage in the U.S. is starting to have an effect on Canadian stores and parents, especially those looking for speciality formulas.
To the extent that it’s happening, it appears mostly a challenge for parents of infants who require specialty formulas due to allergies, digestive problems and other medical conditions.
“In the last few months, we’ve noticed a drastic shortage of certain baby formulations,” said David Banon, co-owner of a Pharmaprix in Montreal, noting the biggest concern is around hypoallergenic formula.
While supply chains can be tenuous, Feyza Sahinyazan, an assistant professor of business at Simon Fraser University, warns that panic buying is not the answer, as it can only exacerbate the issue.
What policy-makers are doing
Typically, 98 per cent of baby formula consumed in the U.S. is made domestically, according to federal officials.
The FDA is working with Abbott to fix the violations that triggered the shutdown of its Michigan plant, which produces Similac, EleCare and several other leading powdered formulas. The company says its products have not been directly linked to the bacterial infections in children, pointing out that genetic samples collected from its factory did not match those found in several infants who got sick.
U.S. President Joe Biden on Thursday discussed with executives from Gerber and Reckitt how they could increase production and how his administration could help, the White House said. He also talked with leaders from Walmart and Target about how to restock shelves and address regional disparities in access to formula.
The administration plans to monitor possible price gouging and work with trading partners in Mexico, Chile, Ireland and the Netherlands on imports.
Still, experts caution that many of the industry-wide issues will continue to restrain supplies.
“This is going to be a problem and it’s not going away for at least a period of several months,” said Dr. Steven Abrams, pediatrician at the University of Texas.
The advice being given to parents
Most regular baby formulas contain the same basic ingredients and nutrients, so parents shouldn’t hesitate to buy a different brand if they’re having trouble finding their regular one.
The Associated Press spoke to Americans who are engaging with trusted friends and mothers in Facebook groups to get tips on where supplies are available, or to share extra quantities. But health officials warn against buying formula via social media websites or outside of conventional retailers because they could be counterfeit.
As It Happens6:46This mother doesn’t know how she’ll feed her baby as the formula shortage rages on
California’s Darice Browning tells AIH guest host Helen Mann she’s down to four cans of the speciality baby formula she needs for her 10-month-old daughter.
Many do-it-yourself formula recipes found on the internet are not advised because they can include cow’s milk and granular sugar, which may be difficult for young babies to digest, and in general lack the specific vitamins and proteins found FDA-approved formulas. Parents should also never dilute infant formula.
Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.
The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.
Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.
The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.
The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.
The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.
The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.
Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.
In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.
“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.
As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.
Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.
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