Consumer Response to a New Food Safety Issue

Consumers generally consider their food supply to be safe, something they take for granted in most countries. If their food were to be contaminated deliberately, it would be considered a great loss. Being harmed by eating food deliberately contaminated is an involuntary risk and therefore more fearsome than a risk taken voluntarily. Consumers in the United States in 2005 would allocate 13% more total dollars to defending the food system than the airline system against terrorist attacks. Based on current spending by the U.S. federal government to protect airline travel, this implies that $5.65 billion should be spent to protect the food system compared to the $93 million allocated to protect the food supply chain in the federal budget year 2007. Private companies are increasing their expenditures and vigilance related to food defense as well. In deciding how to defend the food system and to recover after a potential attack, understanding the preferences and behavior of consumers is important.