The US infant formula shortage explained 

Abbott is shipping supplies from Ireland to the US on a daily basis as its Co Cavan facility plans to double production for the year

Ireland is one of the leading manufacturers of infant formula, with Irish dairy farmers producing about 13% of the world’s supply.

Baby formula manufacturers are doubling down to help the US address the ongoing shortage crippling the country.

Millions of cans of formula made in Ireland have already been shipped across the pond and production is set to significantly increase at the Abbott manufacturing facility in Cootehill, Co Cavan.

But why are US leaders turning to countries like Ireland for help?

Supply issues 

The shortage can be pinned down to a number of issues originally caused by the pandemic, including supply chain disruptions and labour shortages.

However, things really snowballed when Abbott, which produces the popular Similac formula range, had to shut down one of its facilities in Michigan earlier this year due to a contamination issue.

It is estimated that 95% of the US’ baby formula supplies are produced in the country, by relatively few manufacturers. Abbott’s market share is about 42%.

The Michigan factory shut down, compounded by a voluntary product recall by Abbott, supply chain issues, and the war in Ukraine, has led to over 40% of formula products being out of stock in the US.

Panic buying has ensued, with some areas like San Antonio experiencing over a 50% decrease in normal supply levels. Many retailers have also issued quotes on how much formula people can buy.

According to the CDC, over half of babies born in the US are fed formula by the age of three months.

Reports reveal that some parents have resorted to watering down or rationing formula in response to the crisis.

Ireland’s role 

Ireland is one of the leading manufacturers of infant formula, with Irish dairy farmers producing about 13% of the world’s supply.

The value of specialised infant nutrition exports here was €905m in 2019; €896m in 2020; and €682m in 2021.

Six formula manufacturers are based in Ireland including Danone, Wyeth and Abbott. The latter is the only one with an Irish facility currently exporting to the US. 

Abbott operates from nine Irish sites in total, employing almost 3,000 people.

Around 1,000 dairy farms supply ingredients to the Cootehill plant, which is registered by the United States Food and Drug Administration (FDA).

Production has been ramping up at the site since last month. A spokesperson said that there are plans to triple exports of Similac Advance formula from the factory to the US.

“We have a global manufacturing and supply network we’re leveraging to better meet demand, including an FDA-registered plant in Cootehill, where we've increased the volume of Similac Advance powder formula produced for the US,” the company said in a statement.

“We're air-shipping product from this facility into the US on a daily basis. We understand the situation is urgent.” 

Following a review, Abbott said there was no evidence to link their formulas to the reported illnesses. "Abbott conducts microbiological testing on products prior to distribution and no Abbott formula distributed to consumers tested positive for Cronobacter sakazakii or Salmonella," the company said.

Subject to FDA approval, Abbott said that it could restart production at its Michigan site within two weeks. However, it would be six to eight weeks before the products hit shelves.