New Record High Price For Infant Formula in Canada
New data from Stats Canada’s ‘Monthly Retail Sales Price Series’ has revealed a startling trend when it comes to infant formula prices in Canada– they’ve gone up 40% in just over two years.
They’ve increased from an average $30 for a 900 gram container in Jan 2022 to $43 for the same container today, a fresh new record high.
Research Shows That Almost All Canadian Mothers Rely on Infant Formula at Some Point
These price increases dont just affect some mothers– they affect almost all mothers.
Research from the Center for Policy Alternatives highlights that 95%+ of Canadians mother feed their children infant formula at some point during their infant years.
The author of the report, Lesley Frank, who is the Canada Research Chair in Food, Health, and Social Justice at Acadia University, points out that “people are especially quick to judge mothers who have trouble affording formula; after all, they “chose” not to breastfeed, forgoing “free”.
He goes on to add that choices are usually a consequence of circumstance, and that it is unlikely anyone would choose to pay up to $400 per month for infant formula.
Prior to 2022, Prices Were Flat for 5 Years
These price increases are a new phenomenon; prior to 2022, infant formula prices in Canada had only seen small year-over-year increases. In fact, a 900 gram container cost $27 in January 2017 and was only $30 per container 5 years later, in January 2022.
What is Causing These Price Increases?
According to Health Canada, these price increases (and related shortages) can be attributed to a number of factors:
Factory Shut-downs:
In February 2022, the Abbot Nutrition formula manufacturing plant in Michigan was shut down by the FDA after formula products a recall due to bacterial contamination. This factory provided the majority of infant formula to Canada.
An Emerging Domestic Infant Formula Industry in Canada:
Priort to late 2023, Canada had no domestic producer of infant formula and relied entirely on imports.
In 2022, A Chinese dairy giant, Feihe International applied to produce infant formula out of a factory in Kingston Ontario, trading as Canada Royal Milk.
As of April 2024, their website states that they are now fully certified to sell dairy products in Canada.
The hope is that as this supply comes online, price pressures will diminish.
“Price Pressures Expected to Ease” – Health Canada
According to the latest updates from Health Canada “as of September 2023, the Canadian supply of regular formula is stabilizing” and “a steady supply of powdered regular formula from other countries continues to be imported under the interim policy”
Looking for More Information or Infant Feeding Safety Tips?
Health Canada Infant Care: https://www.canada.ca/en/health-canada/services/infant-care/infant-formula/shortage.html
Canadian Pediatric Society Infant Formula Information: https://caringforkids.cps.ca/handouts/healthy-living/shortage-of-infant-formulas-for-babies-with-food-allergies
