Report

WIC and the Retail Price of Infant Formula

By Oliveira V, Prell M, Smallwood D, Frazao E

“Rebates from infant formula manufacturers to State agencies that administer the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) support over one-quarter of all WIC participants. However, concerns have been raised that WIC and its infant formula rebate program may significantly affect the infant formula prices faced by non-WIC consumers. This report presents findings from the most comprehensive national study of infant formula prices at the retail level. For a given set of wholesale prices, WIC and its infant formula rebate program resulted in modest increases in the supermarket price of infant formula, especially in States with a high percentage of WIC formula-fed infants. However, lower priced infant formulas are available to non-WIC consumers in most areas of the country, and the number of these lower priced alternatives is increasing over time.”

This research was funded by the USDA Economic Research Service.

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Date Added
March 21, 2018

Citation
Oliveira V, Prell M, Smallwood D, Frazao E (2004) WIC and the Retail Price of Infant Formula, FANRR-39-1. United States Department of Agriculture, Economic Research Service. Available online: https://www.ers.usda.gov/publications/pub-details/?pubid=46808