Baby-Formula Shortage Was a Government Failure

I find Fred Hochberg’s solution to our current inflation woes (“Imports Would Give America a Boost,” op-ed, July 8) to be off target. He cites the baby-formula shortage as an example of how imports would relieve the problem. But that is only part of the story of the government-controlled baby-formula industry.

There are four major U.S. manufacturers that supply over 90% of the formula. The government has erected almost insurmountable barriers to entry; only one company, ByHeart, has entered the industry in the past 15 years. The government imposes both tariff and nontariff obstacles to discourage foreign competition.

The Agriculture Department purchases half the formula at a discount, (plus manufacturers’ rebates) from the four preferred suppliers. This formula is then distributed at no cost to the millions of qualified moms through the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) program. Studies have shown that U.S. non-WIC distributors have retailed their formula for up to 50% less.