By an edhat reader
Does anyone know if Costco is carrying baby formula again? Specifically the Kirkland brand, but we’ll take another brand if we have to.
Baby Formula at Costco
Anonymous
June 22, 2022, 10:03 am
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Written by Anonymous
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This is literally every aspect of our supply chain problem. Captive regulators allowing mega monopolies which are then protected by special agreements. Baby formula is worse because the government is the largest purchaser of the product, so the manufacturers are given extra leeway in exchange for lower prices. It will take years and aggressive anti-monopoly regulation to unwind our current mess if there is even a will to do so.
“Overregulation” isn’t the crux of the issue. I’m not arguing that red tape is never a problem but it just isn’t the biggest one in this case. Much of the shortage was caused by supply chain issues and labor shortages, like with other shortages. The other major immediate contributing factor was the closure of a large Abbott formula manufacturing plant in Sturgis, Michigan in February. Abbott voluntarily (not forced by regulators) recalled large quantities of formula when several babies that died after consuming their formula were found with the same strain of bacteria found contaminating the plant. This points to the need for better regulation if anything, but I guess that’s a potential battle between the fiscal conservatives and pro-life social conservatives on that one. The long term problem, Concentration in the formula market leading to supply vulnerabilities, can’t be described by one answer. One is, yes, entry cost posed by regulations and difficulty of competing with established players. Another is Trump taxing formula imports from Canada out of the market, reducing competition and supply (free market much?). The other is that formula sales are directly tied to the birth rate, which has been flat or in decline for decades. So there’s little to no profit motive for investors or new companies to enter the market.
805-685-3199 why don’t you call Costco and ask them?
3 DV’s for being helpful ?..
Took me a minute to work out your handle..
Laughed my alpha sierra sierra off.
How did a couple of big producers of baby formula manage to get the government to regulate the industry to the point they have a pseudo-monopoly and also impose massive tariffs on imported formula to further discourage competition?!?! This situation is absolutely ridiculous, and I strongly suspect some sort of kickbacks and a revolving door between the industry and regulatory authority. Excessive regulation has discouraged competition to the point that we no longer have the ability to provide a reliable supply of baby formula. We need a drastic reduction in regulatory red tape right now to allow new competitors to enter the market and increase production capacity. Until that can be accomplished, we should drop tariffs and restrictions on the importation of formula from overseas. Using tariffs to protect our ability to produce formula domestically is a good idea, but not when we don’t have the ability to produce a sufficient amount of formula domestically!
The continued focus on Trump, fiscal conservatives, and pro-life social conservatives is not a winning…..formula. Like a sinking ship at sea having nothing but problems, and the new captain doing nothing but blaming the previous captain. The current regime does not want to fix the ship, and look what is about to happen….crew change (Latest release from SF: “Good By Boudin” soon to be followed in LA with “So Long Gascon”). Oh, and the January 6th folks are extending their inquisition.