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Recent trends and economic issues in the WIC infant formula rebate program


Author:
Oliveira, Victor J., Davis, David E., and United States Department of Agriculture. Economic Research Service.
Source:
Recent trends and economic issues in the WIC infant formula rebate program 2006
Year:
2006
Subject:
Special Supplemental Nutrition Program for Women, Infants, and Children (U.S.), Infant formulas -- Prices -- United States, Infant formula industry -- United States -- Costs, Nutrition policy -- Economic aspects -- United States, WIC Program, infant formulas, infant feeding, economic analysis, and United States
Abstract:
Over half of all infant formula sold in the United States is purchased through the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Typically, WIC State agencies obtain substantial discounts in the form of rebates from infant formula manufacturers for each can of formula purchased through the program. This analysis suggests that retail markup accounts for most of the cost to WIC of infant formula in most States. However, both it and net wholesale price have increased over time. The recent increase in these components coincides with the introduction of higher priced supplemented infant formulas. Conditions may change after the market adjusts to these new formulas.
Language:
English
Publisher:
U.S. Dept. of Agriculture, Economic Research Service
Collection:
USDA publications