U.S. President Biden Invokes Defense Production Act

On Wednesday, U.S. President Biden invoked the Defense Production Act to speed up production of baby formula to ease nationwide shortage.

Biden is requiring ingredient suppliers to prioritize the supply of needed resources to baby formula manufacturers. President also ordered Health and Human Services Department and Department of Agriculture to use Department of Defense aircraft from overseas, to bring in baby formula that meets the U.S. baby formula standard.

98% of baby formula consumed in the US is manufactured domestically. Abbott, Mead Johnson and Nestle are the largest U.S. formula producers. In February this year, Abbott’s baby formula plant in Michigan was shut down after bacteria contamination was found, resulting in a shortage of formula.

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