Wiley Handbook of Science and Technology for Homeland Security, 4 Volume Set

OPTIMAL INVESTMENTS IN MITIGATING AGROTERRORISM RISKS

WILLIAM E. NGANJE

Arizona State University, Mesa, Arizona

ANDREW LEWIS

Risk Management Agency, Kansas State University, Manhattan, Kansas

WILLIAM WILSON

North Dakota State University, Fargo, North Dakota

1 INTRODUCTION

Agroterrorism, or a terrorist attack on the food supply, has become a major concern since the September 11, 2001 attacks. Terrorism directed toward the food system could have extremely large human health, economic, and psychological consequences, such as loss of human life, economic disruption, and negative impacts on consumer confidence [1]. Consequently, if there is any intentional tampering by terrorists on the US food system, it could cost the country billions of dollars in order to control or stabilize the situation [2].

This study provides a framework to value investment strategies to mitigate possible agroterrorism occurrences in the food supply chain and to determine where these investments would reduce the most risk. Such a framework could be applied to any food sector at risk from agroterrorism. This study applies the framework to the milk industry. Previous health scares related to milk illustrate the potential for human harm and economic damage. The discovery of the pesticide heptachlor in over 80% of the milk produced in Oahu, Hawaii in 1982 and the resulting drop in milk consumption showed how contamination can financially handicap the milk industry. It could also result in a number of casualties. ...