Supply Shortage in the Infant Formula Industry
The infant formula industry in the US has been experiencing a shortfall in supply over the past few months. The main reason attributed to the slump in production is due to shortages in the supply of key raw materials such as vitamins, sugars, whey, and lactose based ingredients.
A product recall by Abbott over #Similac, #Alimentum and #EleCare powdered formulas manufactured at the Sturgis facility in Michigan have further compounded the acute shortage in supplies.
Europe is the major production hub for Infant formula accounting for almost 40% of the total global production. Disruption of global logistics and supply chains created by the post-pandemic crisis and rising global inflation values, combined with the current political situation created by the #russiaukrainewar has resulted in the price hikes of key raw materials in this region.
Although the shortage in the supply is anticipated to be mitigated soon, the industry may witness a rise in the prices sooner than later.
News Source: Abbott