Pelosi Is Frustrated Over Baby Formula Shortage

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   Sharlee01posted 3 years ago

   
   Pelosi warns baby formula shortage could trigger indictments
   "When all of this is done ... I think there might be a need for indictment,” the House speaker said. Several committees have launched probes into the nationwide shortage.
   
   "WASHINGTON — House Speaker Nancy Pelosi suggested in frustration Tuesday that indictments could be handed down in the nationwide baby formula shortage after the dust settles.
   
   “I think that when all of this is done — I’m not associating my colleagues with what I’m going to say right now; I’m just saying it myself — I think there might be a need for indictment,” Pelosi, D-Calif., told reporters at a news conference about legislative plans to address the shortage and prevent future ones.
   
   Pelosi did not specify who might be indicted, and a spokesman did not clarify her remarks."
   
   All words or would she dare?
   
   So, what's the deal, where could this all end up?

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      Fayetteville Fayeposted 3 years agoin reply to this

      So we all know that formula produced at Abbott’s Sturgis, Michigan plant was recalled in February after unsafe bacteria was found in batches of the product, which led to infections that killed two babies. Abbott responded by shutting down the factory to fix the problem with the drying process that led to the bacteria contaminating the formula.
      
      But also, a whistleblower sent FDA officials documents in October 2021 showing Abbott was aware of production problems at its Sturgis plant, according to an April article from Food Safety News. Some problems outlined by the whistleblower include falsification of documents and releasing untested formula.
      
      According to the whistleblower, Abbott employees also celebrated after the company was able to hide its production problems that led to the bacteria from FDA officials in an audit.
      
      Additionally, it looks as if Abbott was aware of production problems long before the February recall. Moe Tkacik, a former Wall Street Journal reported, pointed out on Twitter that Abbott has bought more than $5 billion of its own stock since 2019.
      
      So, the origin of the baby formula pocalypse was Abbott management's refusal to repair dilapidated and failure-prone drying machines turning the plant into proverbial petri dishes for cronobacter, because...
      
      They needed that $5.73 billion for stock buybacks.
      
      I'm thinking this probably has something to do with it.
      
      A shared monopoly by just four companies is a big part of the problem.

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         Sharlee01posted 3 years agoin reply to this

         This is all well known, the question is who's responsibility was it to avoid this shortage. It is clear that Abbott needed to be shut down. But someone should have realized this shortage would come about.  Abbott is responsible for I think 30% of the baby formula purchased in the US.
         
         It is a problem to have so few companies producing baby formula.
         My grandson is eight now, when he was born my daughter-in-law did research on the formulas that were being produced in the US and found lots of problems with them. They shipped his formula from Germany. So, I think we do need some other options from the four companies that we have thus far.

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            Fayetteville Fayeposted 3 years agoin reply to this

            Oh my goodness. I'm guessing that the formula she procured in Germany was higher quality all the way around.  European formula also has to meet some standards that are tougher than those seen in the U.S., according to the New York Times. European Union standards ban the use of added sugars like corn syrup, and mandate that at least 30% of the formula’s carbohydrates come from lactose. Which is wonderful, I bet it was a premium price also.
            I'm seeing that the The FDA is easing its requirements on foreign baby formula, but high import tariffs bar global suppliers from plugging the shortfall in U.S. supply.
            
            Some see the problem is that decades of bad policy have led to an unduly concentrated market. Excessive tariffs and other trade barriers have all but shut out imported infant formula. Even if consumers were willing to pay higher prices, the red tape that the government imposes on foreign products, and retailers wishing to distribute them, can be prohibitive. Among other distortions, such measures have effectively blacklisted imports from the European Union, the world’s biggest producer of formula. imports of infant formula are subject to tariff-rate quotas of 17.5 percent after certain thresholds are met. As the name suggests, tariff-rate quotas are meant to be set high enough that they effectively block additional imports by making it unprofitable to pay the tariff. It seems that President Biden would do well to suspend these tariffs which were part of Mr Trump's renegotiation of NAFTA.
            
            As part of the United States-Mexico-Canada Agreement (USMCA), negotiated by President Donald Trump to replace the North America Free Trade Agreement in July 2020, Canada agreed to impose an additional surcharge of $3/kg if the total volume of its global formula exports, not just exports to the U.S.broke a certain threshold. That threshold is currently set at 40,480 metric tons for the current “dairy year” of August 1 2021 to July 31 2022.
            
            Our protectionist policies of these four companies have led to the crisis where currently in. 
            
            https://fortune.com/2022/05/17/us-infan … ffs-usmca/
            
            The new duties seemingly closed off Canada as a source of infant formula. The U.S. imported a grand total of zero tons of baby formula from its nothern neighbor in 2021, yet has shipped tons of domestic formula into Canada. According to the U.S. Department of Agriculture, U.S.-manufactured infant formula made up the largest component of U.S. dairy exports to Canada in 2021, accounting for 22% of all northbound dairy trade.
            
            https://www.freightwaves.com/news/prote … alysts-say
            
            https://www.theatlantic.com/ideas/archi … ll/629828/

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      wildernessposted 3 years agoin reply to this

      Presumably Pelosi will blame the people responsible for not having the foresight to see that something this could (and therefore will happen at some time.
      
      That would be Congress; as Speaker of the House Pelosi should be the first one in the jailhouse march.
      
      But would bet she will only pick Republicans for indictment.

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         Sharlee01posted 3 years agoin reply to this

         I would be interested in who in the administration is responsible for not intervening and noting the growing problem of the shortage. If the FDA closed the plant, I would think they should have put up a red flag that the shortage would occur. This company is the biggest company that produces formulas. It would be very much logical that we would see this shortage. I also wonder if FEMA has a stockpile of baby formula?  MY gosh, this would seem a simple solution to take from the FEMA stockpile for such an emergency. This White House is a mess.
         
         Perhaps we should have put out a plea to other nations to prevent the problem we see now.
         
         Or this ---- For $.42 cents a month, you can help the babies in the US to have the formula, and not be forced to consume watermelon as a supplement. I mean when did the US become a country where we can't make sure our babies have the formula they need?
         
         
         
         CAN YOU AFFORD $. 42 cents a month?
         
         Rep. Cammack torches FEMA, Biden admin for prioritizing funding for migrant travel amid baby formula shortage
         https://www.foxnews.com/media/baby-form … at-cammack

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            wildernessposted 3 years agoin reply to this

            This isn't as simple as it sounds.  The FDA, for example, is not tasked with predicting the economic results of it's actions in protecting the public from unscrupulous businesses.  Can FEMA keep a hundred tons (or whatever amount is necessary) of infant formula indefinitely without it spoiling?  Even the management of the company in question being held responsible is questionable - can we reasonably demand that every company producing anything we need never shut down?  In addition, I've worked for a company where upper management decreed that maintenance be deferred (to their sorrow) - management does not understand (or care) about the nuts and bolts of a factory.  It's too easy to sit at their desk and demand that someone else make it work without the resources or knowledge to do so.
            
            I take some exception to your 42 cents per month as well.  Yes, we could deliver formula to every house in the country every week.  We already pay to have that done for some 60% of them, though (the news reports 61% of formula is paid for by WIC).  And your meme - any child that can eat watermelon does not need formula as baby food (or mashed carrots) will do better.

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               Sharlee01posted 3 years agoin reply to this

               I can agree the Government is not responsible for a company that has to close down. Not sure anyone is responsible in the end. 
               
               My meme was a joke purely. Sorry, it offended you. Just never thought something like this could happen in America. Seems more thrid world country.

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                  wildernessposted 3 years agoin reply to this

                  I apologize for not catching the joke.  In my defense I've seen so many obnoxious, stupid memes lately I missed it.  Should have known better, coming from you.
                  
                  If the government is not responsible for watching our necessary products then no one is.

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                     Sharlee01posted 3 years agoin reply to this

                     No need for an apology.    I have been trying to find out not why it happened, It's clear that Abbott was shut down by the FDA due to serious problems. But, who would be responsible for fixing this problem? I ran across this article where  Mitt Romney claims it's up to the FDA and USDA  to address the current shortage of baby formula and work to prevent future threats to infant health. He claims that the FDA and USDA have a dual responsibility to ensure safe formula and prevent supply shortages when a crisis arises.
                     
                     May 10,2022   "Romney Calls Out Feds for Lack of Action on Baby Formula Shortage"
                     
                     WASHINGTON—U.S. Senator Mitt Romney (R-UT) today urged U.S. Food and Drug Administration (FDA) Commissioner Califf and U.S. Department of Agriculture (USDA) Secretary Vilsack to address the current shortage of baby formula and work to prevent future threats to infant health. In the letter, he stressed that FDA and USDA have a dual responsibility to ensure safe formula and prevent supply shortages when a crisis arises, and he underscored his concern regarding the lack of action to mitigate the ongoing shortage. Romney also highlighted how the recall has caused prices of formulas to skyrocket for many American families who are already facing hardships due to high levels of inflation.
                     
                     “I write to ensure the federal government is taking every available step to get to the bottom of an increasingly urgent, nationwide shortage of infant formula, including the possible connection to several infant deaths,” Senator Romney said. “The responsibility falls on the Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA) to protect infant health by ensuring they have access to safe formula, and when crises arise, to initiate contingency plans to mitigate shortages that risk the lives of infants across the nation. Given the serious implications of the current shortage on infant health, I am deeply concerned about the apparent lack of an effective mitigation strategy and urge both agencies to move as fast as possible to safely resolve this situation.
                     
                     “In addition to the pressing urgency of investigating the cause of death and applying lessons learned to future Food and Drug Administration (FDA) inspections of infant formula manufacturers, we are extremely concerned about the formula product shortages affecting American families from the essential shutdown of the Sturgis facility,” Romney continued. “The recall and shutdown impacts affordability and availability of infant formula—several chain retailers are limiting the number of products per purchase to manage inventory and desperate families face skyrocketing costs through third-party sellers. Infant formulas are also not easily interchangeable: some infants develop allergies or sensitivities, and some infants require specific formulas based on other medical conditions. It is essential FDA build in redundancies and robust supply chain analysis to prevent future life-threatening shortages.”
                     
                     The full text of the letter can be found below"
                     https://www.romney.senate.gov/romney-ca … -shortage/

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                        wildernessposted 3 years agoin reply to this

                        Either the FDA has a lot more power, and a lot more money, than I think they do or the good Senator is spouting nonsense. 
                        
                        I don't think the FDA has the funding (or authority) to stockpile tons of baby formula just in case.  I don't think the FDA has authority to commandeer military aircraft to transport goods internationally.  I don't think the FDA has the funding to feed the infant population of the country if the could import it quickly somehow.  Finally I do not believe the FDA is tasked with ensuring sufficient baby formula to feed the country in any case.  They are tasked with ensuring that plants in our country produce a safe, effective baby formula and likely to give approval to any imports; that they are safe and effective.  Certainly the FDA does not have the authority to set consumer prices.
                        
                        So, in my ignorance, I think Romney is looking for a goat...as all politicians will.  That Congress has not tasked the FDA (or the USDA) with these things is their fault, not that of those agencies.

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   GA Andersonposted 3 years ago

   Here is a bunch of leading questions:
   
   Why is this baby formula shortage the government's fault, and why is it the government's responsibility to fix it? Why is it their responsibility to forecast future needs and possible disruptions?
   
   Should we have a National Stockpile of baby formula? Should we have mandated that there be an amount of 'reserve' production, (more manufacturers, more capacity)?
   
   As a kicker, and based on currently known information, why should there be criminal charges, (relative to the shortage, not bad or possibly illegal business practices)?
   
   GA

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   IslandBitesposted 3 years ago

   House passes bills to address baby formula shortage
   
   The main piece of legislation, sponsored by Rep. Rosa DeLauro (D-Conn.), would provide $28 million in emergency funding to the Food and Drug Administration (FDA) to beef up inspections of formula made at foreign plants and to guard against any future shortages by ensuring the agency is prepared for supply chain disruptions.
   
   DeLauro’s bill was passed 231-192 in a mainly party-line vote, with 12 Republicans going against the recommendation of party leadership and supporting the legislation.
   
   The legislation also includes funding for supply chain monitoring and money to prevent fraudulent products from reaching U.S. stores.
   
   The other piece of legislation would permanently loosen the restrictions on the types of formula that can be purchased by people in the federal low-income assistance program for women, children and infants. That bill passed with bipartisan support in a 414-9 vote, with all nays coming from the GOP.
   
   About half of all formula in the U.S. is purchased by people in the WIC program, which relies on exclusive contracts with formula manufacturers. Abbott Nutrition products serve 89 percent of all infants participating in WIC. The legislation would let states substitute other brands or types of formula in the event of a recall or other type of disruption. 
   
   https://thehill.com/policy/healthcare/3 … -shortage/

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