Who is Responsible? I certainly do not think it is the President of the US.
Though of course the Conservatives do seem to believe that our President makes formula in his off hours. :-)
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22 comments:
Not one of capitalism's finer moments.
--Hiram
I am pretty sure government regulations, bureaucracy, etc also contributed to this mess.
Otherwise more companies would probably make formula.
For example
"I am pretty sure government regulations, bureaucracy, etc also contributed to this mess."
Yes, we should be more cautious about allowing rampant industry consolidation.
The question I have is why are more start ups not entering this lucrative market?
I can buy beer from dozens of micro breweries... But I assume it is the regulations that keep companies out of the formula market?
I mean the idea that a medical device company is a primary provider seems to say it all.
Something is a HUGE barrier to entry...
"The question I have is why are more start ups not entering this lucrative market?"
Most baby formula is sold by large (or at least regional) chain stores (and Amazon as well). Target, Walmart, Costco, grocery stores, etc. Large manufacturers have the advantage there, in terms of being able to buy shelf space and deliver the price points and other requirements those stores want to hit.
Oh come now. There has to be more to it than that... Niche products can get shelf space if they market their product well.
Here is some more info
Of course, given the very specific requirements... It is hard to say your product is better or different.
I assume the market isn't that lucrative. There are lots of businesses that don't exist, not because the products they would have produced aren't possible or aren't needed but because producing them isn't sufficiently profitable.
Growing up, I used to see these displays of video phones. The person on the other side could actually see who they were talking to. The technology existed, and indeed, some people had access to it. Why wasn't it widely available? Because it was too expensive to make it widely available.
Not so long ago, commercial airline travel at speeds faster than sound was offered between the United State and Europe. Why doesn't it exist today? Did we somehow forget how to make the planes?
--Hiram
Hiram,
Those are examples of luxury goods that are not highly regulated.
Baby Formula is a basic required good that is highly regulated with trade barriers in place.
Of course it is highly profitable or a huge medical device company would not be a primary supplier. :-O
It's highly profitable because there are only four primary suppliers who control the market and the barriers to entry are high. The only niches in baby formula are the special versions designed to deal with kids with allergies or sensitivities and the barriers for entry there are even higher than in regular baby formula.
Beer is effectively mild poison. There's far less regulation in terms of risk mitigation in brewing than is present for making food for infants, which is exactly how it should be. I'll tell you that when I had infants, I wasn't gonna buy "Uncle Bills Baby Juice Powder" over a major market brand when it came to the only food my baby ate. Hell, I wouldn't even buy a Target branded diaper.
I never you were such government regulation advocate... :-O :-)
Isn't this a sad state of affairs... Tax payers buy most of the formula...
"The federal government not only regulates formula makers. It's also their biggest customer. About half of all formula sold in the U.S. is paid for by the Department of Agriculture, through its Special Supplemental Nutrition Program for Women, Infants and Children (WIC).
Each state signs an exclusive contract with one of the formula manufacturers to supply subsidized product for low-income families. The government gets a big price break. In exchange, the formula maker gets a large, captive market."
How about we go back to basic responsibility... If you can not afford to feed your baby... DO NOT MAKE IT or KEEP IT... :-O
I'm an advocate when I don't feel I can trust the good nature of a company over their profit motive. I mean, aren't we in this shortage because one of the big manufacturers refused to invest in their own company to upgrade equipment that was causing bacteria to develop in their product which resulted in death? Instead they just shut it down and there wasn't sufficient capacity to keep up. Now we've got the government bending over backwards and likely going to pay to do their upgrade for them so we can have safe product. If that happens, they should have to pay back ever nickel.
I don't know why we are in this mess, that is what we are discussing.
I assume the courts will have to decide.
I sure am happy I do not mass produce a product for such a sensitive customers.
Did you know that parents are supposed to keep the crib surface clear of blankets, toys, etc now? :-O
More Info
What sources do you have that the corporation is the villain here?
There was a whistleblower who filed a report in October on lax practices at the Abbott plant.
Abbott whistleblower report
Yes it is a factory in the USA...
Lax is how we operate for better or worse...
I am not sure how to get workers to take safety, paperwork, etc seriously.
It is an interesting report though...
Any idea about this CDC investigation?
CDC Findings
It gets complex, but the FDA points out here that the product testing referred to by Abbott tests less than a pound of formula out of batches that can be hundreds of thousands of pounds. The fact that we're finding other similar bacteria in the plant is a pretty good indication that this the source of the outbreak.
Arstechnica: FDA obliterates formula maker’s defense of contamination linked to baby deaths
I linked to that one earlier.
I guess I trust the CDC more...
It will be interesting to see if they solve this mystery
"As a result of a death attributed to formula believed to be contaminated with C. sakazakii, the CDC9 recommended the following practices to reduce the risk of further illness:
Choose alternatives to powdered forms when possible since powder is not commercially sterile. Liquid, ready-to-feed formula is commercially sterile.
Prepare powdered formula under aseptic technique in a designated preparation room.
Follow manufacturer's instructions. Product should be refrigerated immediately and discarded if not used within 24 hours of preparation.
Limit the administration or "hang-time" for continuous enteral feeding to 4 hours or less.
Since it has been shown that one contaminating cell has the potential to grow and cause illness, it would be prudent to implement a combination of risk-reduction measures to effectively manage the hazard. A joint meeting of the FAO and WHO developed similar recommendations after conducting a quantitative risk assessment for E. sakazakii (Cronobacter spp.) in powdered infant formula."
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