The ongoing shortage of baby food is lifting the veil on how government policies are leading to market dominance by certain manufacturers, to the detriment of FDA laziness, and federal regulations that inhibit competition.
For example, Abbott had 40 percent market share before it shut down a few months ago following a dangerous bacteria outbreak.
Abbott closed its Michigan factory due to the outbreak that resulted in the deaths of two babies and the recall of most of its products.
But Abbott’s fate and the baby food supply crisis arose not just from the disease, but also from the federal government’s policy of forcing states to choose a baby food supplier. According to Yahoo Finance, the FDA is not fully active in helping the free market develop:
Since 1989, federal law has restricted competition by requiring each U.S. state to select a company that will provide formula available to low-income families through the Special Supplementary Nutrition Program for Women, Infants, and Children, known as WIC. The program feeds nearly half of babies born in the US, and only three market participants have participated to date: Abbott, Reckitt and Nestle.
In an interview with Yahoo Finance before Wednesday’s speech [congressional] hearing, Rep. Kathy McMorris Rogers (R-WA) expressed her concerns about the FDA’s merger and “bureaucratic procedures” that restrict new manufacturers from entering the market.
“There are companies — other manufacturers — that have had to wait years to enter the market because of FDA delays,” said McMorris Rogers, explaining that the law he passed last week would give the FDA a deadline to respond to new manufacturers’ requests.
Overall, only a handful of manufacturers, including Abbott, control 90% of the US baby food supply, according to Yahoo.
Meanwhile, the Biden administration is tackling the problem by temporarily changing federal laws and imposing import restrictions to try to offer more products to consumers.
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Source: Breitbart
