ÐÇ¿Õ´«Ã½

Business

    • U.S. safety, savings rules set stage for baby formula shortage

    Share
    WASHINGTON -

    A massive recall is getting most of the blame for the U.S. baby formula shortage, but experts say the products have long been vulnerable to this type of crisis due to decades-old policies that have allowed a handful of companies to corner the market.

    Those government rules -- aimed at assuring safe, affordable formula -- are getting renewed scrutiny as President Joe Biden's administration rushes to import formula from Europe.

    "There's perfectly good and safe baby formula available around the world. We just don't have access to it," said Bindiya Vakil, CEO of Resilinc, a supply chain analytics firm. "We've created this problem by not setting up an infrastructure for imports."

    Abbott Nutrition said Tuesday it expects to restart its shuttered Michigan plant June 4 and begin shipping new formula to stores about three weeks later. The factory is the largest of its kind in the U.S. and has been closed since February, hobbling supplies of popular formulas and specialty formulas for children with rare medical conditions.

    The company also said it received permission from regulators to release 300,000 cans of its EleCare specialty formula for babies with allergic and digestive disorders. The product was not part of a February recall.

    Lawmakers will hold three hearings on the issue this week, calling on company executives, government regulators and outside experts to testify. The attention could spur changes to government safety and contracting rules that have been in place since the 1980s and favor big U.S. manufacturers that are capable of navigating the complex requirements.

    Baby formula is one of the few American products essentially unaffected by globalization, with 98% of the supply manufactured domestically. Four companies account for roughly 90% of the market: Abbott, Reckitt, Nestle and Perrigo, according to industry figures. That consolidation mirrors similar trends across the food industry.

    But infant formula wasn't part of a Biden administration initiative last year spotlighting dangerously concentrated industries, including prescription drugs, airlines, hearing aids and internet services.

    The Federal Trade Commission announced Tuesday that it has launched an inquiry into the formula shortage, seeking information on any deceptive or fraudulent business practices related to it. The agency said it also aims to shed light on what led to the concentration in the baby formula market and the weak supply chains.

    Food experts say strict formula regulations set by the Food and Drug Administration have long limited competition.

    Beginning in 1980, Congress gave the FDA authority to rigorously enforce the nutritional content of all formula sold in the U.S., imposing extra research and manufacturing standards that have few equivalents worldwide. The changes came after some babies were sickened by deficient formulas in the 1970s.

    "They are pretty much the strictest food safety guidelines in the U.S. and America has some of the strictest guidelines in the world," said Wendy White, a food safety expert at Georgia Tech.

    Companies must consult with the FDA before selling a new formula, altering ingredients in an existing one or making major manufacturing changes. The result is only the biggest manufacturers have plants and procedures that comply with federal rules. And would-be competitors have little incentive to enter the field, given the declining U.S. birth rate.

    "You have to have a lot of expertise, a lot of resources and a lot of research dollars," White said.

    There are other hurdles for foreign manufacturers looking to compete. The U.S. has long imposed tariffs and quotas on dairy imports from abroad, including Canada, in order to shield American milk producers from competition.

    Responding to political pressure, the Biden administration has begun airlifting shipments of formula from Europe. In a related move, the FDA said Tuesday it would allow the importation of 2 million cans of Kendal Nutricare formula from the U.K to boost supplies. The products are expected to begin arriving in U.S. stores early next month.

    The biggest driver of the U.S. market, by far, is a massive federal nutrition program that provides formula and other foods to lower-income women and children. The WIC program accounts for more than 50% of the U.S. market, providing formula for more than 1.2 million babies, according to the National WIC Association, which represents state and local administrators who run the benefit.

    Beginning in 1989, federal law has required states to award contracts to a single formula company, based on whichever one can offer the biggest discounts.

    The effect is that contract winners quickly squeeze out much of the competition on store shelves. Today, all 50 WIC contracts are held by three companies: Abbott, Reckitt and Nestle, according to the association. Abbott is the leader, with 34 state contracts.

    The competitive effects of these sole-source contracts have been researched for years. A 2011 study by the U.S. Department of Agriculture found that whichever company wins a state's WIC contract typically sees their market share grow by 74%, on average, as WIC recipients switch to their brand.

    But not everyone supports overhauling the system. Brian Dittmeier of the National WIC Association says doing away with sole-source contracts would jeopardize the savings that allow the plan to serve so many Americans. Instead he says manufacturers should be held accountable for not investing in their own capacity.

    "This is a manufacturing failure," Dittmeier said. "The fact is there just is not enough product to fulfill the demand that manufacturers have drummed up over the years." His group supports calls by some lawmakers for a federal antitrust investigation into the industry.

    WIC contracts are generally rebid every four years and market share swings back and forth between the handful of players who compete.

    Dr. Steven Abrams, a pediatrician at the University of Texas at Austin, says Congress should revisit the WIC program.

    "We need to take a comprehensive look at where the failures happened and where we can fix them" said Abrams. "We need to consider whether we really want to have a situation where there's that much dominance in the program."

    ------

    AP Business Writer Marcy Gordon contributed to this story. Follow Matthew Perrone on Twitter: @AP--FDAwriter.

    ------

    The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute's Department of Science Education. The AP is solely responsible for all content.

    CTVNews.ca ÐÇ¿Õ´«Ã½

    Police have arrested an 18-year-old woman who allegedly stole a Porsche and then ran over its owner in an incident that was captured on video.

    Since she was a young girl growing up in Vancouver, Ginny Lam says her mom Yat Hei Law made it very clear she favoured her son William, because he was her male heir.

    Advocates have identified the woman who died this week after being shot by police in Surrey, B.C., as a South American refugee who was raising a young daughter.

    Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.

    A 15-year-old boy who was the subject of an emergency alert in New Brunswick has been arrested.

    The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    Provincial police investigating the death of a cat that was allegedly set on fire in Orillia earlier this week released surveillance video of a person of interest in the case.

    Canada

    • Advocates have identified the woman who died this week after being shot by police in Surrey, B.C., as a South American refugee who was raising a young daughter.

    • Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.

    • The RCMP is seeking the dismissal of three officers who have been suspended from the Coquitlam detachment since June 2021 over allegations of racist, sexist and homophobic comments made in a group chat.

    • Police have arrested an 18-year-old woman who allegedly stole a Porsche and then ran over its owner in an incident that was captured on video.

    • Provincial police investigating the death of a cat that was allegedly set on fire in Orillia earlier this week released surveillance video of a person of interest in the case.

    • The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    World

    Politics

    Health

    • A Nova Scotia woman has applied for a medically assisted death, saying after years of battling to receive out-of-country surgery for an illness that causes 'indescribable' pain, she struggles to maintain the will to live.

    Sci-Tech

    Entertainment

    • Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.

    • It was the last show for longtime children's TV star Ron (Buck Shot) Barge Friday as hundreds of family, friends and fans attended a public memorial in Calgary.

    Business

    Lifestyle

    • When Bernard Morissette got a call from Loto-Quebec on Sept. 18 and was asked if he was sitting down, he had no idea what was coming his way.

    • An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.

    Sports

    • The Winnipeg Blue Bombers have won five in a row. The Edmonton Elks have won five of their last six games. They are the two hottest teams in the West. When they meet Saturday at Commonwealth Stadium, something has to give.

    • Agreement in principle has been reached to build a new NHL arena at LeBreton Flats has been reached between the Ottawa Senators and the National Capital Commission (NCC), the two sides announced Friday.

    • F1 star Max Verstappen punished over bad word

      Formula One points leader Max Verstappen was ordered to 'accomplish some work of public interest' after uttering an inappropriate word Thursday at the news conference ahead of the Singapore Grand Prix.

    Autos

    Local Spotlight

    Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.

    An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.

    They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.

    A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

    Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

    The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

    The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

    It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.

    A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.

    • The RCMP is seeking the dismissal of three officers who have been suspended from the Coquitlam detachment since June 2021 over allegations of racist, sexist and homophobic comments made in a group chat.

    • Advocates have identified the woman who died this week after being shot by police in Surrey, B.C., as a South American refugee who was raising a young daughter.

    • When the federal government announced all open net fish farms on the British Columbia coast need to be out of the water by 2029, it also promised to produce a draft transition plan by the end of July. It missed that target by seven weeks.

    • Police have arrested an 18-year-old woman who allegedly stole a Porsche and then ran over its owner in an incident that was captured on video.

    • The parents of a teenager who died after allegedly consuming the poisonous products of a Mississauga man are now suing him, as well as several doctors involved in her care.

    • One person was rushed to the hospital with life-threatening injuries after a multi-vehicle collision in Milton, Ont. on Friday night.

    • The man charged with fatally stabbing lifelong Banff resident Ethan Enns-Goneau in 2022 has been convicted of second-degree murder.

    • Environment Canada issued a frost advisory for Calgary late Friday afternoon.

    • It was the last show for longtime children's TV star Ron (Buck Shot) Barge Friday as hundreds of family, friends and fans attended a public memorial in Calgary.

    • Agreement in principle has been reached to build a new NHL arena at LeBreton Flats has been reached between the Ottawa Senators and the National Capital Commission (NCC), the two sides announced Friday.

    • For years, the commute to Ottawa's west end was one of the biggest complaints for attending fans. But those who live in Kanata and in the immediate LeBreton area say the move would be a big change their respective neighbourhoods.

    • Ottawa police are investigating a shooting downtown Friday afternoon.

    • Three men were injured after trying to subdue a man armed with a knife during afternoon prayers at a Montreal-area mosque Friday afternoon.

    • When Bernard Morissette got a call from Loto-Quebec on Sept. 18 and was asked if he was sitting down, he had no idea what was coming his way.

    • A man who asserted his right to work in French has won his case before the Tribunal, invoking the new provisions of the province's French-language law (Bill 96) to that effect.

    • The Fairmont Jasper Park Lodge announced Friday it is now accepting reservations from guests for accommodations beginning Oct. 1.

    • Two Edmonton Police Service officers have been criminally charged in connection with an assault.

    • There's a friendship in the Edmonton Oilers crease between Stuart Skinner and Calvin Pickard.

    • A 15-year-old boy who was the subject of an emergency alert in New Brunswick has been arrested.

    • Halifax Regional Police warned the public of a series of high-value thefts targeting retail stores Friday.

    • Air travel is back in full swing at the Halifax Stanfield International Airport.

    • The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

    • A plane approaches the grass runway at Harv’s Air School south of Steinbach. Nothing is getting in the way of a clear, smooth landing, but owner Harv Penner worries, that could soon change.

    • The University of Manitoba's College of Dentistry is dealing with some unexpected consequences from the federal government's new Canadian Dental Care Plan

    • Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.

    • Regina police are responding to a collision involving a motorcycle on Friday evening.

    • Five Regina schools were placed into lockdown or secure the building mode following a report of a weapons investigation at Miller High School on Friday.

    • Protests were held in front of Kitchener City Hall on Friday, both for and against LGBTQ2S+ inclusive education and queer rights in schools.

    • The provincial government is considering new rules to restrict a municipality’s ability to install new bike lanes if it means traffic lanes would be removed.

    • A new scam is being reported in communities across the country.

    • Hospital beds in hallways, supply shortages in the neonatal intensive care unit, and operating rooms being put on hold are some of the concerns nurses are voicing, according to the Saskatchewan Union of Nurses (SUN).

    • The Saskatchewan RCMP major crimes unit is investigating after a 29-year-old man died in hospital.

    • A garage fire in Saskatoon’s Willows neighbourhood on Friday narrowly missed igniting an attached home, according to the fire department.

    • Emergency crews in northern Ontario found the bodies of four people inside a home where a fire broke out Thursday night.

    • Police have arrested an 18-year-old woman who allegedly stole a Porsche and then ran over its owner in an incident that was captured on video.

    • A Brampton driver, 27, was charged this week when northern Ontario police stopped the SUV he was driving on Highway 17 after a reported shooting and found more than $100,000 in cash.

    • A man is in hospital with life threatening injuries following a collision between a motorcycle and a vehicle on Friday afternoon.

    • NEW

      NEW

      Under intense cross-examination from Crown Attorney Jennifer Moser, the embattled former Mayor of Woodstock stuck to his story denying that he ever did anything inappropriate to his female accuser.

    • Two men from Barrie have been charged after a deadly shooting at a park in Keswick on Wednesday.

    • Provincial police investigating the death of a cat that was allegedly set on fire in Orillia earlier this week released surveillance video of a person of interest in the case.

    • A jury has found a Barrie man guilty of second-degree murder for the stabbing death of a man at a Banff bar two years ago.

    • The Special Investigations Unit (SIU) is searching for the occupants of a vehicle caught on security cameras during a fatal police-involved shooting on Goyeau Street.

    • Windsor police say a 25-year-old mother has been charged with the drowning death of her 5-year-old child in the family’s backyard pool.

    • The federal government is investing $18.4 million dollars into the region.

    • A home has been transformed for the benefit of a B.C. neighbourhood, by a man who was transformed by the caring of his community.

    • When the federal government announced all open net fish farms on the British Columbia coast need to be out of the water by 2029, it also promised to produce a draft transition plan by the end of July. It missed that target by seven weeks.

    • New Democrat Leader David Eby has launched his British Columbia election campaign a day early, making the key battle ground of Surrey his first stop.

    • A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.

    • The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.

    • Animal protection officers in British Columbia have rescued three pit bulls – including one that gave birth to 10 puppies – from a rat-infested home in Kelowna.

    • After a summer of preparation, the Lethbridge Hurricanes are ready to open the 2024-25 season.

    • As a new semester is underway, Lethbridge Polytechnic and the University of Lethbridge say the number of students on campus is on the rise.

    • A Lethbridge resident is facing charges after police seized drugs and weapons at a traffic stop for bicycle equipment violations.

    • A 26-year-old driver from Surrey, B.C., has been charged with three counts of criminal negligence causing death and bodily harm in a crash that killed two youths in northern Ontario last year.

    • Ontario Provincial Police say three suspects from southern Ontario have been charged and drugs worth $300,000 have been seized following a traffic stop Sept. 16.

    • A Brampton driver, 27, was charged this week when northern Ontario police stopped the SUV he was driving on Highway 17 after a reported shooting and found more than $100,000 in cash.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.

    Stay Connected
    Follow CTV News