Why does formula cost so much?

Community Leader
Registered: 10-01-2010
Why does formula cost so much?
3
Tue, 07-26-2011 - 5:46pm

According to the article I posted in the newsstand below:

"[WIC] Rebates per can of formula also vary across States and ranged from 85 to 98 percent of the manufacturer’s wholesale price in fiscal 2000. As a result, the highest net price a manufacturer received for WIC- provided infant formula was only 15 percent of the wholesale price. Net prices in September 2000 ranged from 6.5 cents (per can of milk-based liquid concentrate) in Florida to 44.7 cents in Nebraska and South Dakota. For the U.S. as a whole, net prices averaged 18 cents per can in fiscal 2000. "

If the formula companies can afford to give formula to half the US population for an average of 18 cents a can (in 2000) - and you pay (how much a can if you are not on WIC?) - who is footing the bill here?

iVillage Member
Registered: 04-13-2008
Wed, 07-27-2011 - 8:38am

This sort of subsidy, by charging the rest of the population soooo much is stunning really.

Community Leader
Registered: 10-01-2010
Wed, 07-27-2011 - 9:27am
teresagem wrote:

And by giving so many of the poorer mothers such a heavily subsidised product, they are not making a decision even based on real economic facts.

What I don't understand is that if half the countries babies are receiving free formula from WIC - does that mean half the country is living under the poverty line? Half the country is poor? That is a sad comment on a country, that considers itself a world leader.

iVillage Member
Registered: 05-20-2008
Thu, 07-28-2011 - 12:12am
witch_power wrote:
What I don't understand is that if half the countries babies are receiving free formula from WIC - does that mean half the country is living under the poverty line? Half the country is poor? That is a sad comment on a country, that considers itself a world leader.

I'm not sure what WIC considers poor in terms of yearly income but it may be that the cap is set much higher then what might typically be considered poor thus there may be some lower middle class moms receiving WIC. Also, the article said half of all formula-fed babies receive formula checks not half of all babies in the U.S. so that would mean that unless currently 50% of all BF'rs are poor, something which was not the case last time I checked, then that means that poor FF'rs on WIC make up less 50% of all babies.

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