Review: The FDA's Awful Labeling Regulations Made the Baby Formula Shortage Worse
Elaborate labeling requirements blocked the importation of direly needed European baby formula.

For months, the U.S. has been in the midst of a baby formula shortage, leaving parents panicked as they confront stores with sparsely stocked shelves and limits on how much they can buy. This is largely driven by a nationwide recall of Similac and other brands of Abbott Labs formula made at a plant in Sturgis, Michigan, and possibly linked to bacterial infections.
Allowing Americans to buy baby formula imported from the European Union could help alleviate the shortage. But many popular E.U.-made formulas can't be sold in the U.S. and will be confiscated at the border if discovered.
The prohibition has far more to do with the Food and Drug Administration's (FDA) nitpicking than with nutritional quality. A 2019 study published in the Journal of Pediatric Gastroenterology and Nutrition examined how 16 popular European baby formula brands measured up to FDA labeling and nutrient requirements. "Listed nutrients fell within FDA requirements in 15 of 16 formulas," found the researchers. Yet "none met all FDA label requirements."
By some measures, the E.U. has more stringent nutritional requirements for formula than the FDA does. Many American parents find European brands preferable for various reasons. But they're still barred from buying these formulas—except on the black market—because their labels aren't quite perfect by U.S. regulatory standards.
The ban seems especially ill-considered given the late spring shortage of baby formula in the U.S., and especially unhelpful in light of the safety concerns with formulas the FDA does regulate.
This article originally appeared in print under the headline "Baby Formula."
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If this was in the print issue, I wouldn't have shared it. It's half-assed. I can't understand why Reason is focusing on less than half of this story. For instance:
This is largely driven by a nationwide recall of Similac and other brands of Abbott Labs formula made at a plant in Sturgis, Michigan, and possibly linked to bacterial infections.
The infants who died of bacterial infections had a bacteria that was never found at the plant, so the recall was unwarranted. Now in the absence of an FDA, the recall might still happen because the company is concerned about lawsuits. But it doesn't absolutely trash all production for months because they're not going to destroy their business, and when they determine the plant is not at fault, business resumes. The plant was shut down for essentially no reason.
And for reasons I can't explain, this publication refuses to point out how subsidies have destroyed domestic competition. Perhaps it's unpopular to say the federal government shouldn't be subsidizing baby formula, but that's why I'm a libertarian-I'm willing to say the federal shouldn't be funding things even when they're popular. The public subsidies negotiated the prices down in exchange for exclusivity in certain markets, giving them a virtual monopoly, and the whole marketplace is an oligopaly of three providers who share production.
Because so much of the supply is negotiated for at federal rates, it's essentially price controlled. This means that in a supply shortage, there's no incentive for a competitor to spring up and rush out production at higher costs to fill the emergency void because they can't sell their product at higher prices. They can't recoup extra costs of dealing with emergencies. There's no incentive to enter the market because the government is controlling it.
And yes, the FDA makes this problem much worse because of regulatory capture. It prevents competitors from entering the marketplace. But it's not just foreign competition, even though Reason is really big on talking about the benefits of free trade. Once again, we had a disruption at one plant and that shut down an entire industry in an extremely large country. It say a LOT that our economy is so fragile that shutting down a single producer briefly destroys the ability to meet demand across the whole nation. Foreign supply is good for dealing with extreme conditions; like a drought or disease that wipes out crops across a large area. You want to be able to rely on foreign supply for that. But you don't want all of your domestic production of a food product passing through one single point of failure. I don't know why this publication fails to analyze how this came about.
The fact that people aren't talking about it means it's not going to get fixed. It's not just a problem of this administration, it predates the Trump administration. It's not just a case of electing new representatives and suddenly the problem goes away. We need to have a hard look at how subsidizing certain industries makes them less resilient to market shocks because there's constantly a push to subsidize healthcare costs and drugs costs. What's happened with baby formula is a glimpse ahead at what happens when an industry is forced to negotiate prices with the government instead of competing in an open marketplace against competitors.
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"The infants who died of bacterial infections had a bacteria that was never found at the plant"
Even worse, from what I've read, the infants who died didn't even all have the same strain. In short there was no reason to suspect that the infections had a common source at all much less that it was from the formula.
My question is what is with these European companies and printing labels? I assume they know all the ingredients in their formulas and what the nutritional values are and I assume all the containers have identical amounts so just print up a bunch of US compliant labels, stick them on the containers and ship them over. Don’t get me wrong, I agree with all you are saying about regulatory capture its just I don’t understand how they can be held up because of labeling.
gotta take any & every opportunity to deflect blame from the plant operators who were more interested in stock buybacks than cleaning out the crud that accumulated in the machines over the decades & blame it on g-g-government r-regulationshz!!
http://www.theguardian.com/environment/2022/may/20/abbott-baby-formula-shareholder-profits
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1 The problem isn't the list of ingredients, it's the nutrition panel. The US FDA and EU regulators require various nutrients listed in a different order. (yes, it's that stupid).
2. It's not as simple as printing and slapping on a new label. As I understand it, the FDA has to pre-approve the label. And that requires testing to verify that the label is accurate (this is not safety testing, that's separate). And the FDA requires that the testing be done in a lab approved and inspected by the FDA.
Thank you.
> subsidizing certain industries
Industries like feeding infants? Not even Healthcare should be left to the Free Market; you are a fucking nutjob
Safety regulations put babies in danger.
Poorly thought out and poorly implemented safety regulations put everyone in danger.
Bureaucrats gotta bureaucrat.