The Baby Formula Shortage of 2022

A brief recap on how this can actually happen in this day and age:

The baby formula shortage of 2022 sturdy because it three reasons. First, there was a recall of baby formula early in the year due to concerns of possible contamination at the factory. This led many parents to not only discard that formula but even good formula that was not recalled out of an abundance of caution.

Second, supply chain issues related to many Covid related shut downs and sourcing materials lead to difficulties in obtaining route material needed to create baby formula. From countries around the world all faced significant issues.

Third, a panic amongst new parents was created through many articles were read and shown on television. That in turn caused panic buying and for the reduced stock with infant formula across the industry.

Other Background Information

Another popular brand called Enfamil had trouble keeping up with the demand. Some have a theory that the reduced number of babies born in America caused the reduction because companies like Enfamil could not produce enough due to supply chain issues. Some people have an idea that with fewer babies are born because people choose to have children later or decide not to have any at all impacts production. While a plausible idea, we are not sure this is fact or fiction at this time.

Similac, another popular brand of baby formula, has recently started to help the shortage of the product. The company has provided a coupon worth dollars off to anyone who buys any Similac product. The coupon only applies to one shipment, so people are encouraged to buy more than one shipment through this offer to get the discount each time. It will increase demand for Similac and is evidence that supports that there are shortages, but product is still available in some locations.

Shortage of baby formula has caused formula prices to rise rapidly, especially in stores such as Wal-Mart. The shortage will lead to an increase in cost for the consumer and not decrease it nearly as quickly as it rose. It is because there is only a certain amount of baby formula available at this time that the price will stay high. There are multiple ways that Wal-Mart can solve this problem, such as using coupons or offering incentives to customers who buy their products. Wal-Mart should have already done this, but the shortage has intensified their need of product as well.

Another solution to keeping up with the demand for baby formula is to increase the production of baby food to decrease cost and increase availability. A large company like Gerber, which supplies most of the baby food, can increase production and take advantage of this opportunity. Several ways include researching other ways to produce baby formula or using excess capacity at their current factories to make more baby formula. The effects will be an increase in supply and a decrease in the price of the product, which will lead to an increase in demand.

Lastly, some are buying on the second hand market or trading with friends. Just be sure to only buy or trade sealed product! Also, be sure to check the lot numbers of the recalled formula to ensure yours is not one of the cans or bottles of product.

 

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