Formula shortage stings US as Australian company ships millions of cans to US
An Australian company will ship more than 1.25 million boxes of infant formula to the United States to alleviate a nationwide shortage in the states.
Key points:
- US grapples with formula shortages
- These shortages were caused by the pandemic and exacerbated by a recall by a leading supplier
- Australian company sends 1.25 million cans to US to help make up shortfall
Some of the formula is currently in storage for transport and more will be produced by Sydney-based manufacturer Bubs Australia in the weeks and months to come.
US President Joe Biden tweeted that the Australian supplier would help alleviate some of the growing demand in his country, supplying 22.5 million bottles of formula (there are 22 bottles of formula per box).
The supply of infant formula began to tighten in the United States at the start of the pandemic, due to panic buying and supply chain problems.
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However, the problems were exacerbated in February when major manufacturer Abbott recalled several types of products and closed its Michigan factory in response to rare bacterial infections in four babies, two of whom died.
This left a huge supply gap in the market, which other producers were unable to fill quickly.
Bubs Australia has assured Australian consumers that it has supply to meet demand in Australia and the United States.
The company released a statement on its website, saying: “We have taken precautions to ensure that our Australian infant formula supply will remain unchanged.
“Thanks to our strict control of our supply chain security and our wholly-owned production facility, we have already manufactured what is needed and have been able to take steps to immediately increase the level of our future production, according to needs.”
Abbott, the U.S. manufacturer, said on Tuesday it plans to restart production at the factory on June 4, adding that its products will then hit the market around June 20.
ABC/Son