Irish Examiner view: Baby formula price hikes must be examined
St Vincent De Paul has recorded a threefold rise in the number of families struggling to afford baby formula between 2020 and 2023. Picture: Andrew Matthews/PA
The massive hike in the cost of baby formula in this country, while alarming in its impact on young families here, is something that should have been monitored officially in the first place and can now been easily solved.
With the St Vincent De Paul charity having recorded a threefold rise in the number of families struggling to afford baby formula between 2020 and 2023 — up to 445 — there are concerns that suppliers of the product are hiking their prices more than the increases they had seen in input costs.
A similar issue across the Irish Sea has seen the Competition and Markets Authority stating its concern that manufacturers and suppliers may not have enough incentive to offer formula at competitive prices.
That was prompted by the British consumer watchdog having found that branded suppliers had maintained high profit margins, despite price increases there in the region of 25%. The authority will now use compulsory information-gathering powers to ascertain if there are problems in the market.
Britain’s supply of baby formula is, like Ireland’s, mainly dominated by two companies — Danone (which makes and markets Aptamil and Cow & Gate) and Nestlé (which makes SMA) — but when charities are finding that formula has become one of the most frequently shoplifted items, and is now being sold door-to-door in some areas, surely an investigation is merited.
The Labour party here has called on the Competition and Consumer Protection Commission to look into the situation and take action as necessary.
If Enterprise Minister Simon Coveney were to use his powers and ask the consumer watchdog to investigate, it is probable that a solution would be arrived at in short order.
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