Re:Bad government policy is fueling the infant formula shortage
by skywal_l on Sunday May 15, 2022 @04:01AM
(#31386042)
I agree it doesn't make sense. Yet, it's what they did...
Re:Bad government policy is fueling the infant formula shortage
by refurb on Sunday May 15, 2022 @04:15AM
(#31386095)
I mean the article covers this?
Re:Bad government policy is fueling the infant formula shortage
by skywal_l on Sunday May 15, 2022 @05:33AM
(#31386398)
No. The article is an opinion piece not an in-depth reporting. You can read this "straight to the point" news source [0] to get some facts on that particular matter.
I am not saying that the current crisis is entirely due to this event. But it made what was probably already a bad but manageable situation into a full blown crisis.
This "newsletter" piece [1] in the NYT mentions several other aspects like business concentration.
[0] https://www.foodsafetynews.com/2022/04/former-employee-blows...
[1] https://www.nytimes.com/2022/05/13/briefing/baby-formula-sho...
Re:Bad government policy is fueling the infant formula shortage
by refurb on Sunday May 15, 2022 @05:55AM
(#31386486)
I'm confused. Your link is about the Abbott plant, but the main article is about the entire market.
And your 2nd link covers the same things as the main article - concentration and too much regulation?
They either had a profitable product line or not. If it was profitable, they had every incentive to fix the problem. Stock buybacks don't change any of that - in fact, they need profit to actually do buybacks.
And not thinking long term? I mean Abbott has been making formula for decades? You're telling me their CFO is like "meh, who care if that multi-billion dollar business goes under in 6 months"?