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The 1080 crisis
Supply chain security
Ecoterrorism vs. business competition
March 10, 2015
Operation Concord
• New Zealand police say suspected environmental activists are threatening to
contaminate infant formula in a backlash against pesticide use. (ThanHnienNews)
• The threat had been under investigation since November 2014
• In March 2015 the police appealed for public assistance to track down the
blackmailer. (Business Insider)
November, 2014
Baby formula threat
• Anonymous letters were sent to dairy producers Fonterra and Federated
Farmers, threatening to poison infant formula and other products if New
Zealand did not cease to use the poison by the end of March (Stuff NZ)
• The threat was only made public in March but manufacturers, suppliers and
distributors were advised to strengthen their supply chain already in November.
1080
(sodium monofluoroacetate)
1080 is a poison used by New Zealand’s Department of Conservation to control
population of possums and non-native species. The pellets are applied to large areas
of land by air.
Controversy
Numerous activists protested against the use of 1080 in aerial drops, pointing out
the risks to non-target species including dogs and to food chain. 1080 is the most
toxic pesticide registered by the WHO. There is no known antidote.
Manufacturer:
Tull Chemicals, Co., AL, USA
Tull Chemicals, Co., is the
only producer of 1080.
In the U.S., 1080 is used
sparingly but more widely
in New Zealand for pest
control.
1972: 1080 use for livestock
protection was banned in the
U.S.
1981: EPA approved 1080
for limited use in poison-
laced collars worn by
sheep.
In 2004, the plant was targeted over environmental
concerns and fear of terrorism.
Regulatory status of 1080
November 2004
Terrorism potential
• Concerns raised about possible exploitation by terrorists to
poison water supplies (Jacksonville)
• The poison is laced with black dye that would show up if 1080
got into floodwaters or a water reservoir
• H.R. 4567 was referred to the Subcommittee on Crime,
Terrorism, and Homeland Security in 2006 (LOC)
The Oregonian (NTI)
Parliamentary debate
Fierce debate over aerial
drops that potentially
threaten New Zealand
waterways occurred in
November 2014
(New Zealand Parliament)
November 2014
Source: Department of Conservation
“Ecoterrorism”
The letters contained
infant formula laced with a
fatal amount of 1080.
Prime Minister John Key
said that written threats to
contaminate infant formula
amount to eco-terrorism
(The Guardian)
PM John Key reassured the public that the scare is most
likely a hoax and that infant formula is safe. (Beehive)
1080 investigation
Activists
• Distanced themselves from
the letters
• Condemned the threats as
'the lowest of the low' (NZ
Herald)
• Very limited number of
people with access to pure
1080 (industry only)
Government
• Criminal blackmail threat
• 1080 drops will not be
affected as that would be
'bowing down to
terrorism' (MassPolicy)
• Adverse consequence to NZ
dairy industry (BI)
• All 1080 activists
extensively questioned
Supply chain security
Increased vigilance and security across the supply chain:
- strengthened security measures in retail stores
- enhanced milk and milk product testing, including a new 1080 testing program
- increased vigilance by all relevant players in the supply chain
- extra physical security at manufacturing premises
- an audit program to confirm dairy processing facilities continue to maintain the
highest level of security and vigilance.
Operation Concord Q&A and Investigation
Manufacturers and global infant formula companies, grocery distribution
companies and retailers, including supermarkets, were advised to put in place
additional measures, including extra security.
October 2015 update
More than 2600 people
considered in relation
to the threats
60 persons of interest
approached for
interviews
Businessman from
Auckland arrested in
October 2015 with
criminal blackmail,
name suppressed for 6
months Arrest announced (NZ Herald)
February 2016 update
The blackmailer was
identified as Jeremy H.
Kerr
The businessman sells
alternative poison –
cyanide-based Feratox
The motivation was to
increase market share
by replacing 1080 in
pest control. Jeremy Kerr (Stuff NZ)

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1080 crisis threatens NZ infant formula supply

  • 1. The 1080 crisis Supply chain security Ecoterrorism vs. business competition
  • 2. March 10, 2015 Operation Concord • New Zealand police say suspected environmental activists are threatening to contaminate infant formula in a backlash against pesticide use. (ThanHnienNews) • The threat had been under investigation since November 2014 • In March 2015 the police appealed for public assistance to track down the blackmailer. (Business Insider)
  • 3. November, 2014 Baby formula threat • Anonymous letters were sent to dairy producers Fonterra and Federated Farmers, threatening to poison infant formula and other products if New Zealand did not cease to use the poison by the end of March (Stuff NZ) • The threat was only made public in March but manufacturers, suppliers and distributors were advised to strengthen their supply chain already in November.
  • 4. 1080 (sodium monofluoroacetate) 1080 is a poison used by New Zealand’s Department of Conservation to control population of possums and non-native species. The pellets are applied to large areas of land by air.
  • 5. Controversy Numerous activists protested against the use of 1080 in aerial drops, pointing out the risks to non-target species including dogs and to food chain. 1080 is the most toxic pesticide registered by the WHO. There is no known antidote.
  • 6. Manufacturer: Tull Chemicals, Co., AL, USA Tull Chemicals, Co., is the only producer of 1080. In the U.S., 1080 is used sparingly but more widely in New Zealand for pest control. 1972: 1080 use for livestock protection was banned in the U.S. 1981: EPA approved 1080 for limited use in poison- laced collars worn by sheep. In 2004, the plant was targeted over environmental concerns and fear of terrorism.
  • 8. November 2004 Terrorism potential • Concerns raised about possible exploitation by terrorists to poison water supplies (Jacksonville) • The poison is laced with black dye that would show up if 1080 got into floodwaters or a water reservoir • H.R. 4567 was referred to the Subcommittee on Crime, Terrorism, and Homeland Security in 2006 (LOC) The Oregonian (NTI)
  • 9. Parliamentary debate Fierce debate over aerial drops that potentially threaten New Zealand waterways occurred in November 2014 (New Zealand Parliament) November 2014 Source: Department of Conservation
  • 10. “Ecoterrorism” The letters contained infant formula laced with a fatal amount of 1080. Prime Minister John Key said that written threats to contaminate infant formula amount to eco-terrorism (The Guardian) PM John Key reassured the public that the scare is most likely a hoax and that infant formula is safe. (Beehive)
  • 11. 1080 investigation Activists • Distanced themselves from the letters • Condemned the threats as 'the lowest of the low' (NZ Herald) • Very limited number of people with access to pure 1080 (industry only) Government • Criminal blackmail threat • 1080 drops will not be affected as that would be 'bowing down to terrorism' (MassPolicy) • Adverse consequence to NZ dairy industry (BI) • All 1080 activists extensively questioned
  • 12. Supply chain security Increased vigilance and security across the supply chain: - strengthened security measures in retail stores - enhanced milk and milk product testing, including a new 1080 testing program - increased vigilance by all relevant players in the supply chain - extra physical security at manufacturing premises - an audit program to confirm dairy processing facilities continue to maintain the highest level of security and vigilance. Operation Concord Q&A and Investigation Manufacturers and global infant formula companies, grocery distribution companies and retailers, including supermarkets, were advised to put in place additional measures, including extra security.
  • 13. October 2015 update More than 2600 people considered in relation to the threats 60 persons of interest approached for interviews Businessman from Auckland arrested in October 2015 with criminal blackmail, name suppressed for 6 months Arrest announced (NZ Herald)
  • 14. February 2016 update The blackmailer was identified as Jeremy H. Kerr The businessman sells alternative poison – cyanide-based Feratox The motivation was to increase market share by replacing 1080 in pest control. Jeremy Kerr (Stuff NZ)