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Kevin Ketels, Assistant Professor, Teaching, Global Supply Chain Management, Wayne State University

Baby formula industry was primed for disaster long before key factory closed down

Cities are trying to address the baby formula shortage with community drives. AP Photo/David J. Phillip

The conditions that led to a shortage of baby formula were set in motion long before the February 2022 closure of the Similac factory tipped the U.S. into a crisis.

Retailers nationwide reported supplies of baby formula were out of stock at a rate of 43% during the week ended May 8, 2022, compared with less than 5% in the first half of 2021. In some states, such as Texas and Tennessee, shortages were over 50%, which has prompted parents to travel long distances and pay exorbitant sums of money to grab dwindling supplies of formula for their babies.

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