JBS begins to reopen meat factory closed due to cyber attack | Cybercrime News

JBS begins to reopen meat factory closed due to cyber attack | Cybercrime News

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After cyberattacks forced the world’s largest meat producer to cease operations, JBS SA began at least partially reopening most of its idle beef factories in North America and Australia.

The Brazilian food giant said late Tuesday that it had made “significant progress” in resolving the attack and would put “the vast majority” of its factories into operation by Wednesday. Facebook’s post stated that its Greeley, Colorado plant is one of the largest beef plants in the United States, and its second shift is scheduled for normal production days, while the plants in Texas, Nebraska, and Wisconsin Some operations are being resumed.

Union leaders said that by Thursday, a factory in Omaha will resume work, and a factory in Pennsylvania will return to normal. JBS said its Canadian beef plant in Alberta has resumed production, which is one of the largest in the country. A spokesman for the Australasia Meat Industry Employees Union in Tasmania said that workers at the Longford beef processing plant in Australia were told to resume operations on Friday.

The world’s largest meat processor says it will open “the vast majority” of its factories on Wednesday [File: Bing Guan/Reuters]

Sunday’s cyber attack forced JBS to close all its beef plants in the United States — which accounted for nearly a quarter of US supply — and slowed the production of pork and poultry. Slaughter operations across Australia ceased, and at least one Canadian factory was idle. JBS has factories in 20 countries and also owns Pilgrim’s Pride Corp., the second largest chicken producer in the United States. Since JBS did not specify the impact, the extent of the disruption may never be known.

As hackers increasingly targeted critical infrastructure, the attack and subsequent shutdowns disrupted the agricultural market and raised concerns about food security.

Chicago’s live cattle futures fell 3.4% from Friday’s closing price, hit a nearly five-month low on Tuesday, and rebounded as much as 2.5% on Wednesday. Chicago’s pork cut volume fell 0.6%, and the increase since last Friday narrowed to 2.9%.

JBS USA CEO Andre Nogueira (Andre Nogueira) said in a statement on Tuesday: “Our system is back online, and we will not waste any resources to counter this threat.”

Fitch Ratings said on Wednesday that it does not expect the cyberattack to have any direct impact on JBS’s credit rating, and believes that the impact of this attack on future negative ratings is “extremely unlikely, provided that the company can resume normal operations in the short term.” “

JBS shares fell 1.1% in Sao Paulo trading, lagging behind the 1% gain of Brazil’s Ibovespa benchmark index.

It is not clear what impact the recent attacks will have on meat prices. According to Michael Nepveux, an economist with the U.S. Agricultural Bureau Federation, retailers do not always like to raise prices for consumers and may try to resist. He said in a telephone interview: “How long it lasts will affect the extent to which consumers start to see things in the grocery store.”

Food buyers worry that the interference of JBS has posed a challenge to the meat industry when prices are already high.

“This will only add fuel to the fire,” said Anne Hurtado, a Chicago buyer at Amigos Meat & Poultry, who is worried that her JBS orders this week will not be shipped on time. “In the past month, we have seen a lot of inflation in the meat industry. Demand has been high and exports have been high.”

Kevin Lindgren, head of sales at Baldor Specialty Foods, said wholesale beef prices in the New York meat market were up 2% from Friday.

“There is nothing crazy yet,” Lindgren said, but he expects prices to rise by 10% within a week. “As austerity comes, it will get higher and higher.”

The JBS attack brought the American system of cheap meat production back into the focus of attention.

The industry is dominated by a handful of giants—Tyson Foods, JBS, and Cargill—which control about two-thirds of American beef. Even closing a few factories can disrupt supply, as seen when the Covid-19 outbreak last year left factories idle and triggered a national meat shortage. The industry is so concentrated that the idleness of the JBS plant meant that the US government on Tuesday was unable to release some key meat pricing data that the agricultural product market relies on every day.

“Attacks like this highlight the vulnerability of our country’s food supply chain. They emphasize the importance of diversifying the nation’s meat processing capabilities,” said US Senator John Thun from South Dakota, who is the second largest in the Senate. The most powerful Republican.

The JBS attack occurred three weeks after Colonial Pipeline Co., the largest gasoline pipeline operator in the United States, became the target of a ransomware attack launched by an organization called DarkSide. Experts said that there is some evidence that the organization is related to Russia. Prior to this, U.S. government agencies, businesses, and medical institutions had been subjected to a series of devastating hacking attacks. These hackers were usually blamed on Russia or Russian hackers when relations between the two countries were tense.

According to four people familiar with the matter who were not authorized to speak publicly on the matter, behind the JBS attack was a notorious Russian hacker organization. The name of the network gang is REvil or Sodinokibi.

Kremlin spokesman Dmitry Peskov said that Russia has no information about cyber attacks, but is making diplomatic contacts with the US government. He said that at the June 16 summit between President Joe Biden and Vladimir Putin, the issue of cybercrime will be on the agenda.

Allan Liska, senior security architect at network security analysis company Recorded Future, said that since May 2020, more than 40 ransomware attacks against food companies have been publicly reported.

Rep. Kevin Brady, Republican of Texas, told David Westin in an interview with Bloomberg TV: “Seeing serious hackers entering the United States and critical infrastructure And the number of cyber attacks is frightening,” he added, adding that companies and governments need to work together to resist such attacks. “We must carefully consider the entire supply chain of each key part of our economy and determine where these network weaknesses may be.”



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