Severe Baby Formula Shortage

Severe Baby Formula Shortage: The United States is now facing a severe baby formula shortage and all the data suggests that things are only going to get worse. 30% of infant formula is… In 2008, China's milk powder production was close to 60 million tons, but in 2009 the figure dropped to 27 million tons. The price of milk powder in China has doubled since the beginning of 2009. In response, the government has been forced to introduce new measures including stockpiling and import controls. The severe baby formula shortage is happening because demand for milk powder is exceeding supply due to a combination of factors such as increased demand from emerging markets, increased demand from China's growing middle class and decreased supply from farms in Europe and New Zealand.