Antipodean dairy firms eye baby food supply to U.S. after Bubs Australia nod
Reuters
Published May 30, 2022 01:32AM ET
Updated May 30, 2022 03:26AM ET
By Harish Sridharan and Rushil Dutta
(Reuters) -Dairy companies in Australia and New Zealand are queueing to restock empty shelves in the United States with baby food, after the country recently relaxed its import policy to mitigate one of the biggest infant formula shortages in recent history.
New Zealand's dairy giants Fonterra and a2 Milk, and privately-run Australian firm Bellamy's Organic confirmed on Monday they had submitted applications to the U.S. Food and Drug Administration (FDA) for supplying baby food to the country.
This followed fellow Antipodean firm Bubs Australia inking a deal with the FDA to ship at least 1.25 million cans of its formula. Shares in a2 Milk closed more than 10% higher, while Bubs Australia shot up 40%.
"I've got more good news: 27.5 million bottles of safe infant formula manufactured by Bubs Australia are coming to the United States," President Joe Biden said in a Tweet https://twitter.com/POTUS/status/1530253441708314626 on Friday.
"We're doing everything in our power to get more formula on shelves as soon as possible."
The U.S. baby food shortage was triggered when Abbott Laboratories (NYSE:ABT), the biggest U.S. supplier of powder infant formula including Similac, in February recalled dozens of products after reports of serious bacterial infections in four infants.
Abbott was on track to reopen its key baby formula plant in Michigan within one or two weeks, although FDA Commissioner Robert Califf told lawmakers a week later it would take until July before store shelves across the country were filled.
"In light of the current situation and revised FDA guidance, we have submitted an application to the FDA for approval to supply finished infant formula to parents in the U.S.," Fonterra, the world's biggest dairy producer, said in an emailed statement.
Emergency supplies from Europe arrived earlier last week after the Biden administration decided to urgently meet nationwide shortages by relaxing import rules.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.