Baby formula shortages continue to worsen as major manufacturers to testify before Congress

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Baby formula shortages continue to worsen as major manufacturers to testify before Congress

The national out-of-stock rate of baby formula continues to worsen as major U.S. baby formula makers prepare to testify before Congress about what they are doing to combat the industry-wide crisis.

Retail data firm, Datasembly, said that baby formula's out-of- stock percentage was at 45% nationwide for the week ending on May 15, which was the lowest level of stock for the week ending on May 15.

In April, baby formula shortages hit 30% before falling to 40% at the end of the month, according to Datasembly. By early May, the out-of-stock rate rose to 43%.

Inflation, supply chain shortages, and product recalls have brought an unprecedented amount of volatility to the category and we expect to see baby formula as one of the most affected categories in the market, according to Datasembly CEO Ben Reich in a statement to FOX Business.

Parents and caregivers have been scrambling for months as shelves become more barren. Retailers were forced to put purchasing limits on the product to try and curtail stockpiling.

In February, the formula shortage worsened after Abbott Nutrition's Michigan formula plant, the largest in the U.S. closed due to contamination problems.

Abbott is one of four companies that produce an estimated 90% of the U.S. formula, including Gerber, Perrigo and Reckitt.

Three of the companies Abbott, Gerber and Reckitt are expected to testify at a congressional hearing next week about what is causing the industry-wide formula shortage and what needs to be done to fix it.

Colorado Democratic Rep. Diana DeGette said in a statement that there was no excuse for what is happening in this country right now. One of our committee's top priorities is to make sure every parent and infant has access to the formula they need. DeGette wanted to know from the witnesses we hear from next week exactly what happened and how it happened, but more importantly, we want to know what needs to be done to get more infant formula on the shelves as quickly as possible. President Biden authorized flights to import supplies from overseas as part of Operation Fly Formula and invoked the Defense Production Act to speed up the production of infant formula. On Sunday, the first of several expected flights from Europe landed in Indianapolis with 78,000 pounds of formula. More shipments are expected to arrive this week, according to the White House.

Brian Deese, the White House National Economic Council spokesman, told CNN's State of the Union that people should see more formula in stores starting as early as this week.