US baby formula shortage could last for some time: official

A top White House economic adviser said on Friday that the nationwide shortage of infant formula in the United States could endure for some time.

“This isn’t going to go away in a day or a week,” Brian Deese told CNN.

Due to a perfect storm of supply challenges worsened by a large recall, US families have grown increasingly anxious for formula.

While he would not offer a specific timeline, Deese said, “We are looking at every possible angle that we can to try to address this issue.”

The average out-of-stock rate for baby formula last week hit 43 percent, according to Datasembly, which collected information from more than 11,000 retailers.

The scarcity initially was caused by supply chain problems and labor shortages, but the problem has been worsening since February 17 when manufacturer Abbott announced a “voluntary recall” for formula made at its factory in Michigan after the death of two infants,.

That recall included Similac, a brand used by millions of American families.

A subsequent investigation cleared the formula, but production has yet to resume.

“We’ve got to see how this progresses in real time,” Deese said.

It is the latest crisis to confound President Joe Biden’s push to get the US economy on sound footing amid the highest inflation in four decades and the ongoing global supply chain bottlenecks.

The United States produces about 98 percent of the formula it consumes, and the Biden administration plans to increase imports of powdered milk.

“The most important step that we can take right now is to give retailers more flexibility on the types of formula that they can sell, and consumers more flexibility for the types that they can buy,” Deese said.

Officials are also collaborating with manufacturers, and he stated that domestic output is improving.

“There has been more formula production in the last month than there was in the weeks leading up to the recall,” Deese added.