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The biggest meat supplier in the world had to halt operations temporarily due to the attack
JBS, a meat production company based in Brazil, holds the top spot as the world’s largest supplier of meat products. In the US alone, they account for one-fifth of the country’s meat production capacity. It was concerning when this significant portion of meat production suddenly stopped on Tuesday because JBS fell victim to a ransomware cyber attack similar to the one that hit the Colonial Pipeline.
On Tuesday, production came to a standstill at 13 of JBS’ facilities across the US as their networks were paralyzed by an unidentified criminal hacker group suspected to be operating from Russia. JBS is in the process of regaining control over their systems and anticipates most plants to resume operations by the end of the day. Following the attack, JBS sought assistance from the FBI, who are currently investigating the source of the breach.
“We have cybersecurity measures in place to deal with such incidents, and we are effectively implementing those measures,” stated JBS USA CEO Andre Nogueira. “Given the progress made by our IT professionals and plant teams in the last 24 hours, the majority of our beef, pork, poultry, and prepared foods plants will be back in operation by tomorrow.”
JBS, headquartered in Brazil and the global leader in meat sales, fell victim to a ransomware attack, escalating pressures on an already strained food supply chain and potentially leading to increased consumer prices #WSJWhatsNow pic.twitter.com/QTQgSAtCGx
— The Wall Street Journal (@WSJ) June 2, 2021
Since JBS is the largest beef producer in the US and the second-largest in pork and poultry, economists fear that this disruption could have adverse effects on the already stressed food supply chains in the country. Depending on how quickly JBS can regain full control, supermarkets in the US might witness temporary spikes in meat prices.
“Much of it hinges on the duration of this situation. If JBS is unable to process cattle or hogs for a significant period, even just a few days, then yes, there could be a shortage since production would be severely limited,” explained Brad Kooima, co-owner of Kooima Kooima Varilek Trading.
