The world’s largest meat producer has been hacked, forcing shutdowns that imperil the global meat supply.
JBS S.A., a Brazilian multinational company, suspended its North American and Australian computer systems on Sunday after their servers were penetrated by cybercriminals believed to be located in Russia.
According to Bloomberg, “JBS’s five biggest beef plants in the U.S. — which altogether handle 22,500 cattle a day — have halted processing,” a move that “wiped out nearly a fifth of America’s production.” JBS is America’s largest beef producer accounting for 23% of the nation’s maximum capacity. Across all product groups, the company generated $52.4 billion in global sales last year.
Bloomberg reports that the cyberattack also impacts the poulty and pork industries. JBS owns Pilgrim Pride Crop, a chicken processing firm.
Pork and chicken facilities across the nation including one in Minnesota were also closed by the owner of Pilgrim’s Pride Corp., the second-biggest U.S. chicken producer, according to union officials and employees. At least five of the six U.S. pork facilities were cutting back on operations Tuesday, according to Facebook posts from the plants.
At the White House, President Biden has authorized his administration to assist JBS in anyway possible. From CNN:
Principal Deputy Press Secretary Karine Jean-Pierre told reporters JBS was a victim of a ransomware attack “from a criminal organization likely based in Russia.” She added that the White House is directly dealing with the Russian government on the matter.
JBS says its backup servers were unaffected and they hope to reopen processing plants tomorrow. The Wall Street Journal explains that the hack comes at a particularly difficult time for meat producers:
As the pandemic arrived in the U.S., tens of thousands of plant workers were infected, according to labor union estimates, forcing a wave of shutdowns over the spring of 2020 that backed up livestock on farms. Meatpackers spent hundreds of millions of dollars to temporarily boost wages, install automated temperature scanners and place partitions between processing-line stations.
U.S. consumers might eventually be impacted by the hack. “Even one day of disruption will significantly impact the beef market and wholesale beef prices,” according to the Steiner Consulting Group, which researches the meat industry.
The cyberattack on JBS is yet another warning sign that critical infrastructure in the U.S. and around the world is vulnerable to crime. Last month, Colonial Pipeline, the largest fuel pipeline in the United States, had to be shut down after a hack. Gas shortages ensued.
