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Navigating the challenges of building a more resilient infant formula industry

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  • Jackie Yenerall
  • Andrew Muhammad
  • Karen DeLong
  • Trey Malone

Abstract

In 2022, U.S. consumers experienced an infant formula shortage that resulted in historic out‐of‐stock rates and brought renewed attention to market concentration in the infant formula market. FDA regulation, tariffs, and limiting WIC benefit redemption to a state's contract brand of infant formula, all potential barriers to competition, were temporarily relaxed to mitigate the impact of the shortage. This article discusses the potential trade‐offs associated with permanent policy changes while highlighting opportunities for future research to support the development of policies to improve resiliency in the infant formula market.

Suggested Citation

  • Jackie Yenerall & Andrew Muhammad & Karen DeLong & Trey Malone, 2024. "Navigating the challenges of building a more resilient infant formula industry," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 499-513, June.
    • Handle: RePEc:wly:apecpp:v:46:y:2024:i:2:p:499-513
    DOI: 10.1002/aepp.13416
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    References listed on IDEAS

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    1. Oliveira, Victor & Prell, Mark A. & Smallwood, David M. & Frazao, Elizabeth, 2004. "Wic And The Retail Price Of Infant Formula," Food Assistance and Nutrition Research Reports 33873, United States Department of Agriculture, Economic Research Service.
    2. Rojas Christian A. & Wei Hongli, 2019. "Spillover Mechanisms in the WIC Infant Formula Rebate Program," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(2), pages 1-14, November.
    3. Wolf, J.H., 2003. "Low Breastfeeding Rates and Public Health in the United States," American Journal of Public Health, American Public Health Association, vol. 93(12), pages 2000-2010.
    4. Yonghong An & David Davis & Yizao Liu & Ruli Xiao, 2023. "Procurement in welfare programs: Evidence and implications from WIC infant formula contracts," Papers 2308.12479, arXiv.org.
    5. Oliveira, Victor & Prell, Mark & Cheng, Xinzhe, 2019. "The Economic Impacts of Breastfeeding: A Focus on USDA's Special Supplemental Nutrition Program for Women, Infants, and Children," Economic Research Report 288290, United States Department of Agriculture, Economic Research Service.
    6. Jeffrey Hadachek & Meilin Ma & Richard J. Sexton, 2024. "Market structure and resilience of food supply chains under extreme events," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(1), pages 21-44, January.
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