The infant formula recall of 2022 led to substantial shortages in the marketplace for a product that has no market substitutes and is often the sole source of nutrition for young infants. In this case study, we explore the food safety recall from an economic perspective, explaining the industry structure, discussing consumer choice, and exploring government response. The case invites students to explore the complexities that lead to a desperate market situation, with out-of-stock rates for infant formula exceeding 90 percent in many regions of the country. The accompanying teaching note provides guidance and suggested answers for discussion and analytical questions.

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———. 2021a. “Form 483.” US Department of Health and Human Services. Available online: https://www.fda.gov/media/156747/download 

———. 2021b. “FDA Advises Parents and Caregivers to Not Make or Feed Homemade Infant Formula to Infants.” US Department of Health and Human Services. Available online: https://www.fda.gov/food/alerts-advisories-safety-information/fda-advises-parents-and-caregivers-not-make-or-feed-homemade-infant-formula-infants

———. 2022a. “Form 483.” US Department of Health and Human Services. Available online: https://www.fda.gov/media/157073/download

———. 2022b. “Abbott Voluntarily Recalls Powder Formulas Manufactured at One Plant.” US Department of Health and Human Services. Available online: https://www.fda.gov/safety/recalls-market-withdrawals-safety-alerts/abbott-voluntarily-recalls-powder-formulas-manufactured-one-plant

———. 2022c. “Guidance for Industry: Infant Formula Enforcement Discretion Policy.” US Department of Health and Human Services. Available online: https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-infant-formula-enforcement-discretion-policy

———. 2022d. “Guidance for Industry: Infant Formula Transition Plan for Exercise of Enforcement Discretion.” US Department of Health and Human Services. Available online: https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-infant-formula-transition-plan-exercise-enforcement-discretion

———. 2022e. “Status Update on FDA’s Infant Formula Response Activities.” US Department of Health and Human Services. Available online: https://www.fda.gov/food/infant-formula-guidance-documents-regulatory-information/status-update-fdas-infant-formula-response-activities

———. 2023a. “The U.S. Food and Drug Administration’s Immediate National Strategy to Increase the Resiliency of the U.S. Infant Formula Market.” US Department of Health and Human Services. Available online: https://www.fda.gov/media/166520/download

———. 2023b. “Enforcement Discretion to Manufacturers to Increase Infant Formula Supplies.” US Department of Health and Human Services. Available online: https://www.fda.gov/food/infant-formula-guidance-documents-regulatory-information/enforcement-discretion-manufacturers-increase-infant-formula-supplies

———. 2024. “Regulations and Information on the Manufacture and Distribution of Infant Formula.” US Department of Health and Human Services. Available online: https://www.fda.gov/food/infant-formula-guidance-documents-regulatory-information/regulations-and-information-manufacture-and-distribution-infant-formula

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Keeve, C., A. Fobia, and J. Berkley. 2024. “About 20% of Parents Reported Difficulty Getting Infant Formula in Summer 2023, Down from 35% in Fall 2022.” How Parents Coped with the Infant Formula Shortage. US Census Bureau. Available online: https://www.census.gov/library/stories/2024/04/infant-formula-shortage.html

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Muhammad, A., J.N. Yenerall, K.L. DeLong, and T. Malone. 2023. “Formula for Disaster: Exploring the Links Between Federal Policies and the Infant Formula Crisis.” Choices 38(3):1–7. https://doi.org/10.22004/ag.econ.338600

Naidu, R. 2022, December 2. “Exclusive: Reckitt Expects U.S. Infant Formula Shortage Until Spring.” Reuters.

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Paris, M. 2022, May 27. “The Cities and States Where the U.S. Baby Formula Shortage Is Worst.” Bloomberg. Available online: https://www.bloomberg.com/news/articles/2022-05-27/the-cities-and-states-where-the-baby-formula-shortage-is-worst

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———. 2023b. “Questions and Answers About the WIC AFBA Final Rule with Request for Comments.” Available online: https://www.fns.usda.gov/wic/abfa-qa

———. 2024a. “Federal Actions to Support Access to Infant Formula.” Available online: https://www.fns.usda.gov/fs/support-access-infant-formula

———. 2024b. “WIC Eligibility Requirements to Bid on State Agency Infant Formula Contracts.” Available online: https://www.fns.usda.gov/wic/requirements-infant-formula-contracts

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———. 2024d. “Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): 2024/2025 Income Eligibility Guidelines.” Federal Register 89(30):10022–10024. Available online: https://www.govinfo.gov/content/pkg/FR-2024-02-13/pdf/2024-02922.pdf

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———. 2022b. “11 Operation Fly Formula Flights Completed by September 29.” Available online: https://www.hhs.gov/about/news/2022/10/06/11-operation-fly-formula-flights-completed-by-september-29.html

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