Ukraine is the world's largest exporter of sunflower-seed oil, which many manufacturers use in baby formula products as a source of important fats, the report said, citing data from the US Department of Agriculture. The blockade of Ukrainian ports has curbed exports of this oil, the report added.
Businesses are trying to find alternative ways to get sunflower oil or to find new recipes with similar oils instead, industry experts noted.
In April, a metric ton of sunflower oil cost over $2,200, while the February price was about $1,500, the report noted, citing the World Bank.
“It does just add an additional cost, complexity and in some cases delays,” explained Lyman Stone, director of research for Demographic Intelligence, which consults for formula manufacturers.
Earlier in May, the Biden administration invoked the Defence Production Act to boost production of infant formula and to use US military cargo airplanes in order to expedite overseas shipments of the product. Since then, at least 1.5 million eight-ounce bottles of infant formula have been transported from Switzerland to Indiana to help alleviate the shortages.
However, the White House has no plans to use this act for sunflower oil, the Wall Street Journal said, citing a senior administration official.