I am the Vice President of Supply Chain Services at ARC Advisory Group, a leading industry analyst and technology consulting company. I engage in quantitative and qualitative research on supply chain management technologies, best practices, and emerging trends.
will fly in baby formula on commercial planes contracted by the military in an airlift aimed at easing the major shortage plaguing the country, the White House said on May 18, 2022. There is an emerging school of thought that monopolies and oligopolies, which have been allowed to operate through lax antitrust enforcement, are incredibly harmful. Two new books,, make this argument. They harm democracy, lead to lower wages, and stifle job creation.
Schlosser pointed out that four companies control 97- 99% of the market share in the baby formula market. Abbot’s baby formula factory in Sturgis, Michigan, is bigger than 12 football fields. This factory had pretty consistent levels of contamination, with a dangerous pathogen that can kill 40% to 60% of the infants that are infected with it. There were illnesses tied to this factory, and the factory was shut down.
The FDA, which is supposed to ensure food safety, was slow to react to these reports. “Their food safety section has the same number of employees today as it had in 1978, and the United States has about 100 million more people. The FDA has been deliberately underfunded for decades,” Schlosser charged. “Industry groups have fought against any sort of tough enforcement of food safety laws.”
This company was using very equipment that was over 60 years old. “There were water leaks. It had all kinds of incredible food safety lapses. But because of the concentrated power of these companies, they're allowed to keep shipping it,” Schlosser said.
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