All of JBS’s U.S. Beef Plants Were Forced Shut by Cyberattack

Yahoo News

(Bloomberg) — A cyberattack on JBS SA, the largest meat producer globally, forced the shutdown of all its U.S. beef plants, wiping out output from facilities that supply almost a quarter of American supplies.

All of the company’s fed-beef and regional beef plants were forced to shutter, and all other JBS meatpacking facilities in the country experienced some level of disruption to operations, according to an official with the United Food and Commercial Workers International Union. 

JBS didn’t immediately respond to a request for comment. The union represents workers at the company’s plants in the U.S.

Slaughter operations across Australia were also down, according to a trade group, and one of Canada’s largest beef plants was idled. That comes after a weekend attack on the Brazilian company’s computer networks, according to JBS posts on Facebook, labor unions and employees.

It’s unclear exactly how many plants globally have been affected by the ransomware attack as Sao Paulo-based JBS has yet to release those details. The prospect of more extensive shutdowns worldwide is already upending agricultural markets and raising concerns about food security as hackers increasingly target critical infrastructure. Livestock futures slumped, while pork prices rose.

Hackers now have the commodities industry in their crosshairs with the JBS attack coming just three weeks after Colonial Pipeline Co., operator of the biggest U.S. gasoline pipeline, was targeted in a ransomware attack. It also happened as the global meat industry battles lingering Covid-19 absenteeism after recovering from outbreaks last year that saw plants shut and supplies disrupted.

The White House offered assistance to JBS after the company notified the Biden administration on Sunday of a cyberattack from a criminal organization likely based in Russia, White House Deputy Press Secretary Karine Jean-Pierre told reporters Tuesday.

There have been more than 40 publicly reported ransomware attacks against food companies since May 2020, said Allan Liska, senior security architect at cybersecurity analytics firm Recorded Future.

JBS suspended its North American and Australian computer systems on Sunday after an organized assault on some of its servers, the company said in a Monday statement. Without commenting on plant operations, JBS said the incident may delay certain transactions with customers and suppliers.

“Retailers and beef processors are coming from a long weekend and need to catch up with orders,” Steiner Consulting Group said in its Daily Livestock Report. “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.”

Grocery Stores

The impact on meat prices at the grocery store may not be immediately apparent. Retailers don’t always like hiking prices on consumers and may try to resist, according to Michael Nepveux, an economist with the American Farm Bureau Federation.

“How long it goes on will impact to what level consumers start to see something at the grocery stores,” he said in a phone interview.

President Joe Biden directed his administration to do whatever it can to mitigate the impact on the meat supply.

“Attacks like this one highlight the vulnerabilities in our nation’s food supply chain security, and they underscore the importance of diversifying the nation’s meat processing capacity,” said U.S. Senator John Thune of South Dakota, the Senate’s No. 2 ranking Republican leader.

Any substantial disruption in meat processing would further stoke mounting political concerns about the concentration of the meat industry and complaints of the four giant companies that control more than 80% of U.S. beef processing unfairly leverage their power over farmers and consumers.

JBS is the No. 1 beef producer in the U.S., accounting for 23% of the nation’s maximum capacity compared to rival Tyson Foods Inc.’s 22% share, according to an investor report by Tyson. JBS accounts for roughly a fifth of pork capacity.

JBS closed beef processing facilities in Utah, Texas, Wisconsin and Nebraska and canceled shifts at plants in Iowa and Colorado on Tuesday, according to union officials and employees. In Canada, an Alberta processing plant was expected to resume operations this afternoon after being idled since Monday, a union spokesman said.

Pork and chicken facilities including one in Minnesota were also closed by the owner of Pilgrim’s Pride Corp., the second-biggest U.S. chicken producer, said union officials and employees. At least five of the six U.S. pork facilities were cutting back operations Tuesday, according to Facebook posts from those plants.

William Callicott, president of the Mid-Atlantic Council of Food Inspection Locals, AFGE, said at least two Pilgrim’s Pride poultry plants in Chattanooga, Tennessee, were closed due to the cyberattack.

Meat Markets Go Without Key U.S. Prices After Cyberattack on JBS

“There are at least 10 plants I have knowledge of that have had operations suspended because of the cyberattack,” said Paula Schelling-Soldner, acting chairperson for the national council of locals representing food inspectors for the American Federation of Government Employees. She declined to identify the locations.

UFCW Internatioanl President Marc Perrone, whose union represents more than 25,000 JBS meatpacking employees, called on the company to “to ensure that all of its meatpacking workers receive their contractually guaranteed pay as these plant shutdowns continue.”

There were some initial signs of restarts. The JBS beef-processing facility in Brooks, Alberta, was resuming operations on Tuesday afternoon, according to Scott Payne, spokesman for United Food and Commercial Workers Canada Union Local 401.

Chicago cattle futures slumped as much as 3.4% Tuesday, before trimming losses. Slaughterhouse closures exacerbated an existing supply glut of animals. The U.S. Department of Agriculture’s midday reports for beef and pork didn’t disclose prices due to “packer submission issues.” However, the CME Group’s pork futures contract jumped by more than 3.5%.

The number of cattle slaughtered in the U.S. fell 22% from a week ago, while hogs were down 20%, according to USDA estimates.

JBS owns facilities in 20 countries. The U.S. accounts for half of the company’s revenue, while Australia and New Zealand represent 4% and Canada accounts for 3%, according to corporate fillings. Brazilian plants are operating normally, a JBS spokesperson said Tuesday by phone.

Backup Servers Fine

Backup servers were not affected, and the company is working to restore systems as soon as possible, according to a Monday statement from JBS USA. JBS’s shares rose 2.3% Tuesday in Sao Paulo, outpacing the 1.6% gain for Brazil’s Ibovespa benchmark index.

JBS is the largest Australian meat and food processor with a portfolio of beef, lamb, pork, and value-added branded products, according to its website. It exports to more than 50 countries and its Dinmore facility is the biggest beef plant in the southern hemisphere.

Still, the shutdown is a big concern for exports if it drags on, said Matt Dalgleish, manager of commodity markets insights at Thomas Elder Markets, noting Australia ships overseas about 70% to 75% of red meat products from sheep and cattle.

“Given the size of JBS globally, if they were offline for any more than a week, then we’re going to see disruption to supply chains for sure,” he said.


9 thoughts on “All of JBS’s U.S. Beef Plants Were Forced Shut by Cyberattack

  1. Cyberattack shuts down the beef industry?
    This is f-king war and this is a tactic of war being applied, just like draining the reservoirs in the middle of a f-king drought.
    Either we are going to take this shit or we are not. These f-kers have no jurisdictional authority over shit.
    Get your goddamn guns, go to the damns, they try to drain the water to starve you and your children to death, shoot their corporate dog asses down.
    They shut down the meat processing, get out your butcher knives, go buy the cows from the ranchers yourselves, and butcher them yourselves.
    This is f-king deliberate and it is aimed to starve your children and the mother f-kers doing it are criminals in violation of our people’s law, ratified December 15, 1791.
    Grow a spine and get your f-king balls out and shove this shit right down their throats.
    The talking parts over.

  2. First the pipelines and now this. Are they going to pay a ransom to the hackers again like they did the last time?

    This is what happens when you negotiate with terrorists and why we never did before. If people pay, then they will know we are weak and will attack us more.

    This is just the start. Expect more attacks to come unless we stop it.

    Like Henry said, “this is f-ing war!”


  3. So they attacked our gas supply, then our food supply. I guess our banks will be next. This is why cryptocurrency and any form of digital currency is the dumbest idea since push button starters on vehicles.

  4. From IWB:

    “On Sunday, Joe Biden’s Secretary of Commerce went on TV and said cyber-attacks are here to stay (just like covid, amirite?)“

    Oh great. So instead of destroying and putting an end to the terrorism, we’re suppose to embrace it.

    He’s truly the weakest president in the history of the world. What a f-ing laughing stock. And no one is talking about impeachment or unfit to lead. Total censorship and complicit media, as well.

    I can’t believe how bad this country has become. Total Communism. I don’t even think Hitlery Clinton could’ve gotten away with so much if she was selected. This guy and the media’s complicity in elder abusing him is the perfection selection for the elites to get away with everything.

    Seriously, with a senile and demented puppet like Teleprompter Joe, who needs enemies?

  5. Well
    It’s not like the fckin cows disappeared

    Just because a bunch of zeros and ones can’t get it together shouldn’t be treated like there isn’t the commodity
    The fckin cows still exist people

    1. Just put the process back like it was before the technology existed. Sharpen that pencil and get out a piece of paper. Or have people been so dumbed down that they need technology to do something as simple as butcher a f-king cow?

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