Slaughterhouse closures spread after the cyberattack on meat producer Business and Economic News

JBS SA’s cyberattack on the world’s largest meat producer has forced the closure of a number of slaughterhouses around the world, and there are signs that the closures are spreading.

JBS’s five largest cattle factories, which handle 22,500 cattle a day, have suspended meat processing, Facebook company messages, workers and unions have reported following an attack on the company’s computer networks on Sunday. According to a trade group, killing operations in Australia had already been suspended and one of Canada’s largest beef plants was stopped on the second day on Tuesday.

The possibility of more widespread closures around the world is distorting agricultural markets and raising concerns about food security as hackers increasingly target critical infrastructure. In the U.S. alone, JBS accounts for nearly a quarter of all cow capacity and nearly a fifth of pig capacity. The future of livestock declined.

The Brazilian meat giant shut down computer networks in North America and Australia after an attack on some of its servers on Sunday, the company reported via email. Without commenting on its plant operations, JBS said the incident could delay some transactions with customers and suppliers.

“Vendors and meat processors have been coming for a long weekend and need to meet orders,” Steiner Consulting Group said in its Daily Report. “If they receive a call saying that the product will not be delivered tomorrow or this week, there will be very big challenges in getting the plants up and running and being equipped for retail.”

JBS shut down meat processing facilities in Utah, Texas, Wisconsin and Nebraska and left shifts at factories in Iowa and Colorado on Tuesday, union officials and workers reported. Union Facebook posts also said they had canceled some U.S. killings and manufacturing changes. It also closes the nationwide pig and chicken facility, which is owned by Pilgrim’s Pride Corp., the U.S.’s second-largest chicken producer, according to union officials and employees.

JBS has not commented on the closure of the U.S. plants, but the company said the Brazilian plant is operating normally.

Shares of JBS rose 1.4% in Sao Paulo, compared to a 1.5% gain in Brazil’s Ibovespa benchmark index. Chicago cattle futures fell to 3.4% from January 12 to the lowest levels before losses were reduced to 1%. The potential closure of slaughterhouses at JBS plants increased the existing surplus supply because there were too many cattle more than the capacity to process them.

U.S. Department of Agriculture reports at noon on meat and pork prices did not reveal “problems with shipping shipments.” However, the CME Group’s future pig contract rose by more than 2%.

JBS is the 1st largest cattle producer in the US. It accounts for 23% of the nation’s maximum capacity compared to a 22% stake in Tyson Foods Inc, according to an investor made by Tyson.

JBS, a U.S. cattle and pig unit, and Pilgrim’s Pride had a net income of about $ 40 billion in 2020, according to the company’s presentations. The division includes operations in the US, Canada, Australia, New Zealand, Mexico, Puerto Rico and Europe.

Hackers have now crossed the commodity industry with the attack on JBS, Colonial Pipeline Co., the largest gas pipeline operator in the U.S., three weeks after it was targeted in a ransomware attack. There have also been struggles with the global Covid-19 absenteeism in the meat industry, after recovering from massive outbreaks last year that saw plants shut down and supply disrupted.

“While JBS has not confirmed that it is a ransomware attack, it has all the important features,” said Allan Liska, chief security architect at Recorded Future cybersecurity analytics firm, who said there have been more than 40 publicly reported ransomware attacks. food companies since May 2020. “The actual number is likely to be higher.”

The cyberattack damaged about 190 miles (118 miles) of a cow factory in eastern Calgary, Brooks, Oklahoma, Canada, disrupting rounds on Monday and Tuesday, according to Scott Payne, a spokesman for the United Food and Commercial Workers Canada Union 401 local. the plants process 30% of Canada’s federally inspected livestock, according to the Canadian Cattlemen’s Association.

Tim Deelstra of UFCW Canada Local 175 said Monday that a JBS packaging facility in Belleville, Ontario, where meat, pork and salmon are prepared for grocery stores, would operate normally. In the U.S., UFCW Local 7 canceled its murder and manufacturing rounds A and B posted on Facebook for June 1st. Local 7 membership brings together 3,000 employees in Greeley, Colorado.

JBS has facilities in 20 countries. The US accounts for half of the company’s revenue, with Australia and New Zealand accounting for 4% and Canada 3%, depending on company compliance. The company also has operations in South America and Europe.

Backup servers well

The backup servers were unaffected, and the company is working to restore the systems as soon as possible, according to a statement issued by JBS USA on Monday. The processor said it is unaware that customer, supplier, or employee data is at risk or misused.

The Australian Cybersecurity Center provides technical assistance to JBS, and Agriculture Minister David Littleproud said the government is working with international partners to find, correct and prosecute those who carried out the attack as much as possible.

JBS is Australia’s largest meat and food processor with a portfolio of branded beef, lamb, pork and value-added products, according to its website. It exports to more than 50 countries and its Dinmore facility is the largest beef plant in the southern hemisphere. In the domestic market, the Australian Meat Industry Council has said there is no indication that the attack will have a significant impact on the supply of red meat and pork products.

However, the closure is a major concern for exports if prolonged, said Matt Dalgleish, head of markets at Thomas Elder Markets, and the Australian ship overseas highlighted about 70% to 75% of red sheep and beef products. There is also a risk of supplies from around the world.

“If it’s a short-term scenario, a week or something offline, it’s probably just a minimal problem,” Dalgleish said. But “given the size of JBS around the world, if they were offline for more than a week, we’re sure to see a disruption in supply chains,” he said.

–With the help of Jason Scott, Sybilla Gross, Michael Hirtzer, Marcy Nicholson, Alyza Sebenius and Lydia Mulvany.