June 1 (Reuters) - U.S. President Joe Biden met with major
infant formula manufacturers on Wednesday, and suggested their
ranks should grow, as his administration presses ahead with
efforts to boost imported supplies to help ease a nationwide
shortage.
"We need more new entrants in the infant formula market,"
Biden said during a virtual meeting with executives from
ByHeart, Bubs Australia, Reckitt Benckiser Group
, Perrigo Company and Nestle SA's
Gerber.
Multiple global suppliers are seeking U.S. approval to ship
critical baby formula as Biden's administration accelerates what
it has dubbed "Operation Fly Formula" to help fill store shelves
and calm frustrated parents.
The approximately $4 billion annual sales U.S. baby formula
market has historically been dominated by domestic producers,
with imports limited and subject to high tariffs.
But U.S. parents have struggled to find baby formula in
recent months after a February recall of some formulas by one of
the nation's main manufacturers, Abbott Laboratories,
coupled with pandemic-related supply chain issues.
The latest administration effort to solve the problem
includes an announcement on Wednesday that United Airlines
has agreed to transport U.K.-made Kendamil formula free
of charge from Heathrow Airport in London to multiple airports
across the United States over a three-week period.
This first shipment, which includes Kendamil Classic and
Kendamil Organic formula, will be available at Target stores
across the country in the coming weeks.
The administration also secured two flights totaling 380,000
pounds of baby formula from Bubs Australia that will be
delivered to California and Pennsylvania on June 9 and June 11,
respectively.
Biden said on Wednesday he only learned of the severity of
the U.S. baby formula shortage in early April. The White House
said it had been working around the clock since February to
address the problem.
U.S. lawmakers have criticized the Food and Drug
Administration (FDA) for not acting promptly to address the
problems that caused the recall at Abbott's Michigan plant,
which is set to reopen June 4.
The Biden administration has relaxed its import policy and
invoked the Defense Production Act to help increase available
U.S. supplies, which is still expected to take weeks. It has
also said it could use federal resources to help transport
supplies to retailers.
Two million cans of formula have been sent from the U.K.,
and Australian manufacturers are also preparing to send in more
product.
Thorben Nilewski of Organic Family GmbH, which makes the
popular Holle infant formulas, said in an email that the German
company applied for the FDAs temporary approval but has not yet
received any feedback.
Many U.S. parents rely on baby formula. Fewer than half the
babies born in the United States were exclusively breast-fed
through their first three months, according to the Centers for
Disease Control and Prevention's 2020 Breastfeeding Report Card.
The agency has said the company, which has the largest U.S.
market share for infant formula, did not have a contingency plan
to produce its specialty formulas that serve as the only source
of nutrition for thousands of babies with metabolic disorders.
(Reporting by Jarrett Renshaw and Trevor Hunnicutt; Additional
writing by Susan Heavey; Editing by Leslie Adler, Chizu Nomiyama
and Aurora Ellis)