The national baby formula shortage and the inequitable U.S. food system

Food and nutrition are literally life-giving and life-sustaining, yet parents and caretakers in the United States who rely on infant and specialty formulas for their loved ones’ health and nutritional needs face high prices and severe shortages. As of May 2022, 43 percent of formula products were out of stock nationwide—a massive increase from the average out-of-stock rate of between 2 percent and 8 percent at the start of the year. Some states, including Iowa, the Dakotas, Missouri, and Texas, are grappling with out-of-stock rates of more than 50 percent. The cost of infant and specialized formula was already untenably high for many, but recent safety concerns, supply chain issues, and challenges related to the COVID-19 pandemic have raised the price of baby formula to alarming highs and driven stock frighteningly low.
Over the past year, the average cost of the most popular baby formula products went up by as much as 18 percent at a time when millions are still struggling to recover from the pandemic and resulting economic recession. Making things even worse are the actions of a few—those who purchase formula at retail stores and resell it online at a severe markup, both increasing costs for vulnerable families and driving up scarcity.
But the formula crisis reveals major flaws in the U.S. food production and distribution system, especially in times of emergencies, as well as weaknesses in the country’s social safety net resulting in inequitable access to food and nutrition. This report looks at how the crisis emerged and considers the longer-term opportunities to make U.S. food production, supply, and distribution systems more responsive, resilient, and equitable to ensure that all individuals and families have access to life-saving food and nourishment. The Center for American Progress recommends interventions and reforms that prioritize access and affordability to key food and nutrition; ideas to reduce market concentration, thus increasing supply; workplace policies to support parents and caregivers; increased oversight on consumer health and safety; and the reauthorization of key legislation that gives Americans the opportunity to create a truly inclusive and equitable food system. (author introduction) #P4HEwebinarOctober2024