Biden announces $2.1 billion in funding to bolster food supply chain system amid shortages, prepares to meet with formula makers to address crisis
- Biden announces $2.1 billion in funding to strengthen food supply chain
- Money for projects like more manufacturing plants and infrastructure
- Biden is also sitting with executives from baby formula makers ByHeart, Bubs Australia, Reckitt, Perrigo Co. and Gerber
- Notably missing from this Abbott Nutrition list
- The meeting will serve as an update on infant formula production and Operation Fly Formula – the administration’s program to airlift infant formula from overseas
President Joe Biden will announce $2.1 billion in funding on Wednesday to strengthen the food supply chain and he will also meet with manufacturers to address the baby formula shortage.
The funds are directed to projects that will increase production and access to food, according to the Ministry of Agriculture.
Specifically, the money includes $900 million for food processing workforce training and supply chain infrastructure, $550 million for small food businesses and reducing the food waste, $375 million for organic and urban agriculture projects and $370 million to improve public access to healthy food, according to Reuters.
Americans are paying 10% more at groceries than a year ago, federal data shows, as the covid pandemic has led to a global supply chain shortage.
The Biden administration has also blamed Russian President Vladimir Putin’s war in Ukraine for the costs. Biden repeatedly called it “Putin’s price hike.”
The announcement comes as the administration focuses on curbing record inflation, an issue that threatens Democrats ahead of November’s midterm elections.
Biden administration directs federal funds to projects like more manufacturing plants and infrastructure to help tackle empty grocery store shelves
President Joe Biden will announce $2.1 billion in funding to strengthen the food supply chain and he will also meet with manufacturers to address formula shortages
Additionally, on Wednesday, Biden speaks with executives from formula makers ByHeart, Bubs Australia, Reckitt, Perrigo Co. and Gerber.
But one company is absent from the meeting: Abbott Nutrition, one of the largest infant formula makers and whose Michigan plant was closed in February for safety reasons, triggering the shortage in the United States. United.
Abbott officials said they plan to restart the plant on June 4 and begin shipping a new formula to stores about three weeks later.
Nearly 98% of infant formula is manufactured domestically. Four companies represent around 90% of the market: Abbott, Reckitt, Nestlé and Perrigo.
Health and Human Services Secretary Xavier Becerra and Surgeon General Vivek Murthy will join Biden in Wednesday’s session.
The meeting will serve as an update on infant formula production and Operation Fly Formula – the administration’s program to airlift infant formula from overseas.
Biden also sits down with executives from baby formula makers ByHeart, Bubs Australia, Reckitt, Perrigo Co. and Gerber for an update on Operation Fly Formula, which is shipping formula from overseas (above, a second shipment arrived in the United States last week)
The Biden administration announced last week that it was bringing in enough infant formula from Australia to fill 27.5 million full-size 8-ounce bottles.
“Bubs Australia expects to supply at least 1.25 million boxes of several varieties of its infant formula,” the FDA said.
Some of the product is already in stock and more is being produced, the agency noted.
But it has not been announced when the product will arrive in the United States.
Already, two formula shipments have arrived from Europe as part of Biden’s Operation Fly Formula. They brought in a total of 1.5 million 8-ounce bottles of formula.