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Wic And The Retail Price Of Infant Formula

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Author Info

  • Oliveira, Victor
  • Prell, Mark A.
  • Smallwood, David M.
  • Frazao, Elizabeth

Abstract

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.

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File URL: http://purl.umn.edu/33873
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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Food Assistance and Nutrition Research Reports with number 33873.

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Date of creation: 2004
Date of revision:
Handle: RePEc:ags:uersfa:33873

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Related research

Keywords: WIC program; infant formula; cost-containment; rebates; food package costs; Special Supplemental Nutrition Program for Women; Infants; and Children; child nutrition; food assistance; Food Security and Poverty;

References

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  1. Ward, Michael B. & Shimshack, Jay P. & Perloff, Jeffrey M. & Harris, J. Michael, 2002. "Effects of the private-label invasion in food industries," MPRA Paper 22186, University Library of Munich, Germany.
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Cited by:
  1. Prell, Mark A., 2004. "An Economic Model Of Wic, The Infant Formula Rebate Program, And The Retail Price Of Infant Formula," Food Assistance and Nutrition Research Reports 33879, United States Department of Agriculture, Economic Research Service.
  2. David E. Davis, 2012. "Bidding for WIC Infant Formula Contracts: Do Non-WIC Customers Subsidize WIC Customers?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 80-96.
  3. Huang, Rui & Perloff, Jeffrey M., 2009. "WIC Contract Spillover Effects," Research Reports 153344, University of Connecticut, Food Marketing Policy Center.
  4. Saitone, Tina L. & Sexton, Richard J. & Volpe, Richard J., III, 2012. "Markups and Promotional Patterns of California WIC-Authorized Foods," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124927, Agricultural and Applied Economics Association.
  5. Oliveira, Victor & Davis, David E., 2006. "Recent Trends and Economic Issues in the WIC Infant Formula Rebate Program," MPRA Paper 6657, University Library of Munich, Germany.
  6. Oliveira, Victor & Frazao, Elizabeth & Smallwood, David M., 2011. "The Infant Formula Market: Consequences of a Change in the WIC Contract Brand," Economic Research Report 118020, United States Department of Agriculture, Economic Research Service.
  7. Tiffany Green, 2011. "Infant feeding and asthma: is breast milk best?," Review of Economics of the Household, Springer, vol. 9(4), pages 487-504, December.

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