Market monopolists face competition as Operation Fly Formula expands infant formula import

05 Sep 2022 --- Kendamil and Danone are set to export infant formula products to the US which continues to struggle with shortages. Announcing Operation Fly Formula 21 and 22, the Biden administration wants to ease market pressures, with flights from England, Ireland and New Zealand to facilitate the exports.

To date, Operation Fly Formula has imported more than 85 million 8-ounce bottles, the White House underscores.

The US Department of Health and Human Services (HHS) has facilitated air shipment for two flights from New Zealand to Chicago containing five million 8-ounce bottles of Danone Aptamil Gold Plus infant formula, equivalent to 333,338 pounds, to be distributed by retailers.

Danone is planning to export a total of 39 million 8-ounce bottles of its infant formula brands from Ireland and New Zealand to the US. Last month, the Netherlands-based company began shipping specialty formula to the US.

Additionally, four flights have been facilitated from England to New York from September 1 to 5. The distribution contains 1.5 million 8-ounce bottles equivalent to 101,335 pounds of Kendamil baby formula. To date, the Operation Fly Formula has provided the US with 85 million 8-ounce bottles. 

Earlier this year, the FDA enforced a discretion that Kendamil may export additional infant formula.

“Kendamil plans to export approximately 58 million 8-ounce bottle equivalents to the US market under Operation Fly Formula,” the White House underscores. 

Reaching for equilibrium
Triggered by the COVID-19 pandemic, the Ukraine war, the supply chain crisis and the product recall from Abbott Nutrition. The US has struggled with infant formula shortages as inadequate supply has kept the shelves empty.

Abbott Nutrition, one of the four market monopolists in the US, entered a consent agreement with the US Food and Drug Administration (FDA) on the initiative of the Biden Administration to re-open its Sturgis plant in Michigan after bacteria was found in the plant causing sickness for several infants, whereas some cases were fatal. 

The White House stresses issuing FDA guidelines on safe infant formulas, both at the Sturgis plant and for foreign exports.

The Operation Fly Formula was launched to speed up the import process of infant formula during the shortage and to fill stores with products as soon as possible. 

“Under Operation Fly Formula, the HHS, the US Department of Agriculture, the General Services Administration, and the Department of Defense are partnering to pick up overseas infant formula that meets health and safety standards, so it can get to store shelves faster,” the White House notes. 

Edited by Beatrice Wihlander