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Danone ramps up US baby formula shipments to address shortage

Danone is the world's second biggest baby milk formula maker but a relatively small player in the US
Danone is the world's second biggest baby milk formula maker but a relatively small player in the US

Aptamil maker Danone has stepped up shipments of infant formula from Europe to address a shortage in the US, according to US customs data and an analysis of ocean cargo data by shipping consultancy Ocean Audit for Reuters.

Danone is the world's second biggest baby milk formula maker but a relatively small player in the US.

It shipped much of the product from Britain and the Netherlands by ocean freight through its Nutricia North America arm.

This followed a February 17 recall by top manufacturer Abbott Laboratories which recalled dozens of types of its Similac, Alimentum and EleCare formulas, creating one of the most urgent food shortages in recent history for US families.

Abbott said in a statement today that millions of parents rely on its formula to feed their babies and the company is doing everything it can to address the shortage in the US.

The company said it has increased the volume of infant formula powder produced at its FDA-registered facility in Cootehill, in Co Cavan and have air shipped millions of cans into the US.

"We are grateful for the dedication of our colleagues in our facilities around the world, including Cootehill, for doing everything possible to help mums, dads and caregivers get the high-quality nutrition they need for their babies," it added.

Between January and May, Danone's Nutricia division more than tripled its ocean imports to North America, and more than 90% was delivered to the US, said Steve Ferreira, CEO of Ocean Audit, which analysed the data exclusively for Reuters.

"We understand how important it is for families to access these specialised formulas which is why our absolute priority has been to increase production and supply of these medical formulas to serve the most vulnerable babies since the shortages arose in February," a Danone spokesperson told Reuters.

On May 10, three days before US President Joe Biden took to the airwaves with his plan for addressing the baby formula shortage, the Independent Quest sailed into the Port of Philadelphia to deliver 42,000 cans of Danone formula.

It was rapidly dispatched to Jeffersonville, Indiana to be distributed to retailers that for weeks had to limit how much infant formula mothers could buy.

"If it comes into the port on a Monday, I'm almost certain that they would have it out by Tuesday or Wednesday because the product's so hot," Ferreira said.

Ferreira said his data showed that from January 1 to May 1 2021 Danone Nutricia sent nearly 770,000 cans of infant formula, filling roughly 100 cargo containers, to the North America. During the comparable period this year, the number skyrocketed to more than 2.4 million cans, he said.

Of that product, 93% went to East Coast US ports, while 7% went to ocean gateways in Mexico, Ferreira said.

Separate US customs data analysed by Reuters shows that on February 22, five days after the Abbott recall, nearly 38,000 kilograms of Danone Nutricia cargo arrived in the US from Britain and the Netherlands.

The customs data did not specify the exact nature of the cargo, but described some of it as "clinical nutrition powder" and "medical nutrition". On March 9, roughly 34,000 kilograms more arrived, followed by nearly 30,000 kilograms on March 30.

Reuters could not obtain records confirming Danone's airborne baby formula imports.