Meat plant closures spreading after cyberattack on JBS – Orange County Register

Fabiana Batista, Michael Herzer, Elizabeth Elkin | Bloomberg

Cyber ​​attacks on JBS SA, the world’s largest meat producer, have forced some of the world’s largest slaughterhouses to close, with signs of widespread closure.

According to JBS posts to Facebook, trade unions and employees, JBS’s five largest beef mills in the United States process a total of 22,500 cows a day. One-fifth was lost.

Slaughter operations across Australia have also shrunk, according to industry groups. One of Canada’s largest beef mills was closed for the second day.

It is unknown how many plants around the world were affected by the attack, as JBS has not yet released detailed information. As hackers increasingly target critical infrastructure, prospects for larger closures around the world have already overturned agricultural markets and raised food security concerns. In the United States, JBS accounts for about one-quarter of beef production capacity and about one-fifth of pork production capacity. Livestock futures have fallen while pork prices have risen.

The Brazilian meat giant closed its computer networks in North America and Australia after a systematic attack on several servers on Sunday, the company said in an email. JBS did not comment on plant operations. He said the accident could delay certain transactions with customers and suppliers.

“Retailers and beef processors have long weekends and need to keep up with orders,” the Steiner Consulting Group said in a daily livestock report. “If you suddenly get a call that the goods may not be delivered tomorrow or this week, you will have a very serious problem in getting your factory up and running and keeping your retail inventory in stock.”

The union officials and employees said the JBS had closed meat processing facilities in Utah, Texas, Wisconsin and Nebraska and canceled the shift on Tuesday at its Iowa and Colorado factories. The Union Facebook post also states that the killing and forgery shifts in the United States have also been cancelled. Pork and chicken facilities across the United States have also been closed by owners of Pilgrims Pride Corporation, the second largest chicken producer in the United States, according to union officials and employees.

JBS said the Brazilian plant is operating normally, but has not commented on the closure of the US plant.

JBS’s share price in Sao Paulo rose 1.4%, while Brazil’s Ibovespa Benchmark Index rose 1.5%. Chicago cattle futures contracts fell 3.4% to their lowest level since January 12 before reducing losses to about 1%. The possibility of closing the slaughterhouse at the JBS plant exacerbated the existing oversupply and exceeded the cattle processing capacity.

The USDA noon report on beef and pork did not disclose prices due to “packer submission issues.” However, CME Group’s pork futures contracts jumped by more than 2%.

According to Tyson’s Investor Report, JBS accounts for 23% of the largest beef producers in the United States and 22% of its rival Tyson Foods Inc.

According to company filings, JBS USA’s beef and pork division and Pilgrim’s Pride had net revenues of approximately $ 40 billion in 2020. This division includes operations in the United States, Canada, Australia, New Zealand, Mexico, Puerto Rico, and Europe.

Just three weeks after Colonial Pipeline Co., the largest gasoline pipeline operator in the United States, was targeted by a ransomware attack, the JBS attack targeted hackers, who are now targeting the commodity industry. It also happened when the global meat industry was fighting for a prolonged absence of Covid-19 after recovering from last year’s pandemic, when factories were closed and supplies were cut off.

“JBS has not confirmed that this is a ransomware attack, but it has all of one feature,” said Allan Liska, senior security architect at cybersecurity analytics firm Recorded Future. Food companies since May 2020. “The actual number is probably higher”

The cyberattack affected a Canadian beef factory in Brooks, Alberta, about 190 kilometers (118 miles) east of Calgary, and the shift was canceled on Monday and Tuesday, according to the United Food and Commercial Workers Union Canada Union Local 401. Spokesman Scott Payne said. According to the Canadian Livestock Association, the plant processes 30% of cattle that have been inspected by the Federal Government of Canada.

The JBS packaging facility in Belleville, Ontario, which prepares beef, pork and salmon for grocery stores, was operating normally, said Tim Deelstra of UFCW Canada Local 175 on Monday. In the United States, UFCW Local 7 posted on Facebook and kill-and-fabrication shifts A and B were canceled on June 1. Local 7 members include 3,000 employees at JBS in Greeley, Colorado.

JBS has facilities in 20 countries. According to company information, the United States accounts for half of the company’s revenue, Australia and New Zealand account for 4%, and Canada accounts for 3%. The company also operates in South America and Europe.

Backup server is fine

According to a JBS USA statement on Monday, the backup server has not been affected and the company is working to restore the system as soon as possible. The processor stated that it was unaware that customer, supplier, or employee data had been compromised or misused.

Australia’s Cyber ​​Security Center is providing technical assistance to JBS, and Agriculture Minister David Littleproud has said that the government is working with international partners to track and correct as much as possible the people who carried out the attack. , Said he was about to prosecute.

According to the JBS website, JBS is Australia’s largest meat and food processor with a portfolio of beef, lamb, pork and value-added branded products. Exporting to more than 50 countries, Dinmore’s facility is the largest beef factory in the Southern Hemisphere. The Australian Meat Industry Council said there were no signs in the domestic market that the attack would have a significant impact on the supply of lean and pork products.

Matt Dalglaish, manager of Commodity Market Insights at Thomas Elder Markets, said Australia shipped about 70% to 75% of lean sheep and beef products abroad and was closed. He said that prolongation would be a major concern for exports. There are also risks to global supply.

“If it’s a short-term scenario and you’re offline for a week or something, it’s probably a minimal issue,” says Dalgleish. But “given the size of JBS around the world, supply chain disruption will certainly occur if you’ve been offline for more than a week,” he said.

Meat plant closures spreading after cyberattack on JBS – Orange County Register Source link Meat plant closures spreading after cyberattack on JBS – Orange County Register

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