Canada sits on a potential treasure trove of baby formula raw ingredients, but the country lacks processing capacity. According to the Dairy Processors Association of Canada, there is a surplus of solids non-fat, the main ingredient in infant formula. Solids non-fat is what remains from cows’ milk once it has been processed and the fat removed for use in other products, such as butter. With no domestic processing capacity, much of it is either going to waste or being sold as animal feed.
Canada’s reliance on imports to feed babies that are not breastfed is becoming a concern. A product recall in a US manufacturing plant that produced a significant portion of Canada’s baby formula supply led to a shortage of infant formula in Canada for more than a year. Even though the manufacturing plant has since reopened, it still isn’t up to full capacity. Lower-cost formula brands are particularly short, and not all brands are available in Canada, according to Health Canada.
To turn the extra solids non-fat into baby formula, it needs to be specially processed to make it easy for tiny stomachs to digest. Manufacturers are interested in making baby formula in Canada again. However, the rules in Canada are so strict that it makes it difficult to justify the investment, said Michi Furuya Chang, vice-president of public policy and regulatory affairs for the Food, Health and Consumer Products of Canada.
To incentivize investment in manufacturing again and bring it back domestically, the industry group is calling for an efficient, but risk-based, modernized regulatory system. The Canadian government has set aside $333 million in the 2023 federal budget to research what else could be made with the leftover dairy materials over the next 10 years, help develop processing capacity, and market the products. Although processing infant formula is an important goal for Canada, Health Minister Jean-Yves Duclos said it won’t happen soon because setting up a factory that is safe and sound takes a lot of time.