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U.S. is facing the biggest shortages of baby formula in recent history

U.S. is facing the biggest shortages of baby formula in recent history

The closure of Abbott Laboratories' production plant in Sturgis, Michigan during an investigation by the US Food and Drug Administration on 17th of February has resulted in one of the worst infant formula shortages in recent history for American families. Following reports of bacterial illnesses in four new-borns, Abbott, the largest U.S. provider of powder infant formula, halted its Michigan factory, compounding a shortage among numerous manufacturers that began with supply-chain concerns linked to the coronavirus epidemic.

On Sunday, Abbott CEO Robert Ford apologized for the shortfall and pledged to resolve it, stating that the factory will reopen in the first week of June and that items would take six to eight weeks to reach store shelves. It was also confirmed by the FDA that they have a green light to continue with the production.

There are also other companies, that are helping with supplying the United States with infant formula. The biggest names are Nestle, Reckitt and Danone.

graf alpho 23.5.

Movement of Abbott’s stock in the last five years. (Source: Trading Economics)

Sources:

https://www.investing.com/news/stock-market-news/abbott-baby-formula-plant-on-track-to-reopen-within-12-weeks-fda-commissioner-2828116

https://tradingeconomics.com/abt:us

https://www.investing.com/news/stock-market-news/baby-formula-crunch-in-us-forces-scramble-to-boost-supplies-2828452

https://www.reuters.com/business/healthcare-pharmaceuticals/baby-formula-crunch-us-forces-scramble-boost-supplies-2022-05-20/

https://www.investing.com/news/stock-market-news/first-baby-formula-shipment-arrives-from-europe-on-us-military-plane-2828844