Condom Controversy: Alabama vs. China

Thursday, April 09, 2009

Turns out “Buy American” does not apply to condoms. The US Agency for International Development (USAID) has decided to end its contract with Alabama-based Alatech Healthcare Products for the condoms it distributes overseas, and instead will buy the prophylactics from China. The decision means the loss of more than one hundred jobs for the town of Dothan, as company officials insist they will go out of business without the USAID contract. Government officials said the decision to go with a Chinese supplier was based on quality and reliability issues, while Alatech’s president said it was simply a matter of being underbid by China. Alatech produces its condoms at 5 cents a piece, while the Chinese supplier can do it for 2 cents each. Some observers questioned USAID’s rationale for switching, given China’s recent reputation for poor quality control involving products ranging from dog food to toys.

-Noel Brinkerhoff
 

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