WIC and the Retail Price of Infant Formula
by Victor Oliveira
, Mark Prell
, David Smallwood
, and Elizabeth Frazão
Food Assistance and Nutrition Research Report No. (FANRR-39-1) 106 pp, June 2004
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.
Keywords: WIC program, cost-containment, food-item restrictions, vendor restrictions, manufacturers rebates, food package costs, Special Supplemental Nutrition Program for Women, Infants, and Children, child nutrition, FANRP, food assistance
In this publication...
- Research brief, 59 kb | HTML
- Abstract, Acknowledgments, Contents, Summary, Definitions, 501 kb
- Introduction, 70 kb
- Overview of the WIC Program, 75 kb
- The WIC Infant Formula Rebate Program, 556 kb
- The Domestic Infant Formula Market, 85 kb
- Source of Infant Formula Data, 162 kb
- Infant Formula Trends, 87 kb
- Infant Formula Prices and Availability by Market Area, 473 kb
- Event Study Analysis of Retail Infant Formula Prices, 72 kb
- Multivariate Analysis of the Determinants of Retail Infant Formula Prices , 114 kb
- Discussion, 70 kb
- Conclusions, 52 kb
- References, 46 kb
- Appendix A, 62 kb
- Appendix B, 79 kb
- Appendix C, 89 kb
- Appendix D, 89 kb
- Appendix E, 51 kb
- Entire document, 1,950 kb
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See also: An Economic Model of WIC, the Infant Formula Rebate Program, and the Retail Price of Infant Formula.