Baby Formula Empty Shelves

Chart of the Day: 40% of Baby Formula Out-of-Stock – The Why Might Not Be What You Think

The baby formula out-of-stock rate nationwide sits at 40%, according to a report from Datasembly. In Iowa, South Dakota, North Dakota, Missouri, Texas, and Tennessee, the rates were greater than 50% during the last week of April. See below an ABC report on this baby formula shortage.

“This issue has been compounded by supply chain issues, product recalls, and historic inflation,” Datasembly CEO Ben Reich said in a report from mid-April. “Unfortunately, given the unprecedented amount of volatility to the category, we anticipate baby formula to continue to be one of the most affected products in the market.”

The formula shortage, which has become a national crisis, was triggered by supply chain issues but spiked recently with the closure of the Abbott plant due to alleged production issues that have led to two infant deaths. Abbott Laboratories, the biggest baby formula supplier in the US, whose Michigan plant was shut down nearly three months ago, claims the bacterial infection that killed at least two infants did not come from their products.

In mid-February, Abbott Laboratories issued a nationwide baby formula recall and ceased operations at its plant in Sturgis, Michigan, amid reports of babies contracting bacterial infections from its products. Despite this issue with Abbott, the baby formula supply chain issues have been building for nearly a year. See this in the chart below and learn more here and here.

Baby Formula Shortages 2022

See below the states in the US that have been hit the hardest by this baby formula shortage crisis.

Baby Formula Shortages by State 2022

Unfortunately, Abbott’s Sturgis plant is responsible for the manufacturing of 75% of all amino acid baby formulas in the US. The Abbott plant still remains closed despite the findings after shutting down in February amid a major product recall. So far, the FDA refuses to allow it to reopen. Abbott says it’s “working closely with the FDA to restart operations” at the plant as parents across the nation are struggling to get formula for their babies.

Again, the supply chain issues have been ongoing for nearly a year, while the Biden administration has done little to alleviate the issues. It is almost as if it was part of a plan to drive an agenda that more government control is needed over the free market – when the opposite would be the better solution to relieve these shortage issues.

This story is not over.

See more Chart of the Day posts.

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 RWR original article syndication source.

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Written by Tom Williams

Born down on the farm in America's Midwest, my early life was spent climbing the ladder via a long career in information technology. Starting as a technician, and after earning a degree going to night school, I eventually found a place working at ATT Bell Laboratories as a software engineer.

Later moving into management and then a long stint in a major management consulting firm working with major banking, telecommunications, and retail companies. Working in various states in America, I also spent considerable time living and working in several European countries - currently expat in France. As a side career, I was heavily involved in real estate development and an avid futures trader. This experience can give one a unique view of the world.

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