JBS Plants Operational After Cyberattack
JBS USA said Wednesday the “vast majority” of its processing plants were operational after a Memorial Day weekend cyberattack on its operations in North America and Australia.
JBS notified the Biden Administration Sunday of the ransomware attack and that the demand came from a criminal organization likely based in Russia. The White House said the FBI is investigating the incident.
"The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals," U.S. Deputy Press Secretary Karine Jean-Pierre said in a press briefing.
USDA estimated slaughter on Tuesday at 94,000 head, a 22% decline from the 121,000 on the same day last week. USDA also estimated hog slaughter was down 19.5%. Both percentage declines coincide with JBS’ share of production.
Analysts believe the disruption may impact spot market pricing for much of the week. Major food service and retail buyers are scrambling to find fill in supply in order to run production.
The Daily Livestock Report offered analysis on the situation and if there would be a long-term impact on the supply chain and markets.
“Much is unknown at this time and it makes no sense to speculate on the material impact this will have on cattle,” the report said. “But even one day of disruption will significantly impact the beef market and wholesale beef prices. Retailers and beef processors are coming from a long weekend and need to catch up with orders and make sure to fill the meat case. If they suddenly get a call saying that product may not deliver tomorrow or this week, it will create very significant challenges in keeping plants in operation and the retail case stocked up.”
JBS said there is no evidence of customer, supplier or employee data being compromised.
Ransomware expert Allan Liska of the cybersecurity firm Recorded Future told the Associated Press the attack on JBS was the largest yet on a food manufacturer. But he said at least 40 food companies have been targeted by hackers over the last year, including brewer Molson Coors and E & J Gallo Winery.
Food companies, Liska said, are at “about the same level of security as manufacturing and shipping. Which is to say, not very.”
