The blame game of the US baby formula crisis

Abstract

The United States cannot meet the demand for infant formula. The nation is currently experiencing a problem due to the industry being controlled by a small number of enterprises, states relying on a single supplier, and a ban on importing infant formula from other nations. The four major corporations’ control 89% of the domestic infant formula market creating an industry monopoly within the United States. Second, the dependence of separate states on a single baby formula provider is the cause of the infant formula shortage. In exchange for granting monopolies to formula producers inside specific areas, the federal government is given price cuts on baby formula goods, enabling it to pay for the acquisition. Finally, the United States's inability to import infant formula has significantly exacerbated the current scarcity. However, in the meanwhile, President Joe Biden's administration has put stopgap measures in place to end this shortage, like loosening limits on imports from abroad, but these measures are unlikely to provide long-term remedies. A multi-level strategy with long-lasting structural adjustments is required to avert future infant formula shortages in the United States, but for the time being, caregivers must find individual-level solutions to meet their children's nutritional needs.