Decades of market consolidation in the U.S. have resulted in problems like the one millions of American families are now facing. Four companies — Abbott, Perrigo, Nestle and Mead Johnson — control 90% of the U.S. supply of formula.
President Biden invoked emergency powers under the Defense Production Act to try and boost production of baby formula, while ordering the use of government planes for imports to alleviate shortages.
Abbott Laboratories reached a pact with U.S. authorities that would allow it to begin making baby formula again at a troubled plant in Michigan, a move that could help ease a supply shortfall that has rattled many parents.
Large corporations face a whole new world of demands affecting their public-facing supply chain strategies, backed by potentially powerful and wide-ranging legislation that takes aim at due diligence.
The U.S. and European Union plan to keep addressing supply chain and other disruptions as they project a unified front against Russia when high-level officials meet starting Sunday to discuss cooperation on trade and technology issues in Paris.