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AN ECONOMIC MODEL OF WIC, THE INFANT FORMULA REBATE PROGRAM, AND THE RETAIL PRICE OF INFANT FORMULA AgEcon
Prell, Mark A..
This report develops an economic model that provides the theoretical framework for the econometric analyses presented in the report's companion volume, WIC and the Retail Price of Infant Formula (FANRR-39). The model examines supermarket retail prices for infant formula in a local market area, and identifies the theoretical effects of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and its infant formula rebate program. Special attention is given to the rebate program's sole-source procurement system by which a single manufacturer becomes a State's "contract brand"-the State's one supplier of formula to WIC infants-in exchange for paying rebates to WIC. When a manufacturer's brand is designated a State's contract brand,...
Tipo: Report Palavras-chave: WIC program; Infant formula; Cost containment; Rebates; Food package costs; Special Supplemental Nutrition Program for Women; Infants; Children; Child nutrition; Food assistance; Food Security and Poverty.
Ano: 2004 URL: http://purl.umn.edu/33879
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WIC AND THE RETAIL PRICE OF INFANT FORMULA AgEcon
Oliveira, Victor; Prell, Mark A.; Smallwood, David M.; Frazao, Elizabeth.
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...
Tipo: Report Palavras-chave: 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.
Ano: 2004 URL: http://purl.umn.edu/33873
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Recent Trends and Economic Issues in the WIC Infant Formula Rebate Program AgEcon
Oliveira, Victor; Davis, David E..
Over half of all infant formula sold in the United States is purchased through the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Typically, WIC State agencies obtain substantial discounts in the form of rebates from infant formula manufacturers for each can of formula purchased through the program. The cost to WIC for each can of formula provided through the program has two components: (1) net wholesale price, which is equal to the wholesale price of formula minus the amount of the rebate; and (2)retail markup, which is equal to the retail price minus the wholesale price. This analysis suggests that retail markup accounts for most of the cost to WIC of infant formula in most States. However, both cost components have...
Tipo: Report Palavras-chave: WIC; Special Supplemental Nutrition Program for Women; Infants; And Children; Infant formula; Rebates; Net wholesale price; Retail markup; Wholesale price; Food Assistance and Nutrition Research Program; FANRP; Food Consumption/Nutrition/Food Safety.
Ano: 2006 URL: http://purl.umn.edu/7228
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