From Brazil JBS SA told the U.S. government that a ransomware attack on the company that disrupted meat production in North America and Australia originated in a criminal organization probably based in Russia, White house dit.
JBS, the world’s largest wrapped meat producer, said Tuesday night that it had made “significant progress in resolving the cyberattack.” The “vast majority” of the company’s beef, pork, poultry and prepared food plants will be operational on Wednesday, according to a statement, which will alleviate concerns about rising food prices.
The cyberattack was followed last month by a group linked to Russia to Colonial Pipeline, the largest gas pipeline in the United States, which paralyzed fuel supply for several days in the southeastern United States.
JBS on Tuesday stopped slaughtering cattle at all of its U.S. plants, according to union officials. On Monday, the attack led to the closure of Australian operations.
“Our systems are back online and we don’t save resources to combat this threat,” said Andre Nogueira, executive director of JBS USA.
With U.S. operations based in Greeley, Colorado, JBS controls about 20% of U.S. livestock and pig slaughter capacity.
White House spokeswoman Karine Jean-Pierre said the United States had contacted the Russian government and that the FBI was investigating.
“The White House has a direct relationship with the Russian government on this issue and sends the message that the responsible states do not host ransomware criminals,” Jean-Pierre said.
JBS sells beef and pork under the Swift brand, with retailers like Costco Wholesale Corp carrying their pork loins and fillets. JBS also owns most of Pilgrim’s Pride Co. chicken processors, which sells organic chicken under the Just Bare brand.
Ongoing shutdowns at JBS plants would threaten to raise meat prices for U.S. consumers during the summer grilling season and disrupt meat exports at a time of strong demand from China.
“The supply chains, logistics and transportation that keep our society moving are especially vulnerable to ransomware, where attacks on bottlenecks can have excessive effects and encourage hasty payments,” said the researcher. John Hultquist’s threats to security company FireEye.
The disruption quickly had an impact on Tuesday, industry analysts said. According to estimates by the U.S. Department of Agriculture, U.S. meat packers slaughtered 22% less livestock than a week earlier and 18% compared to a year earlier. Pork processing also fell.
Prices for the selection and selection of US beef cuts sent to wholesale buyers in big boxes jumped more than 1% USDA dit.
According to a statement, the USDA contacted several large meat processors to encourage them to keep the supply moving and slaughter additional livestock when possible. The agency also urged meat packers to make their IT infrastructure and supply chain more durable.
Federal agencies, including the USDA and Department of Homeland Security they are closely monitoring meat and poultry supplies, a White House official said. Agencies are also working with agricultural processors to ensure that no price manipulation occurs as a result of the cyberattack, the official said.
SUSPENDED AFFECTED SYSTEMS
JBS said it suspended all affected systems, authorized notifications, and that backup servers were not affected. A representative in Sao Paulo said there was no impact on Brazilian operations.
The company said Sunday’s cyberattack affected its US and Australian computer systems and “resolving the incident will take time, which could delay certain transactions with customers and suppliers.”
Beef and pork prices in the United States are already rising as China increases imports, feed costs rise, and slaughterhouses face a shortage of workers. Any other impact on consumers will depend on how long JBS plants remain closed, analysts say.
JBS Beef in Cactus, Texas, told Facebook that on Wednesday there would be no production by manufacturing, slaughter or rendering in a single turn. Another shift will have regular initial schedules for employees.
An early change to the JBS beef plant in Greeley was also canceled on Wednesday after the cyberattack, but a subsequent change was scheduled as normal, representatives of Union Local Union 7 said in an email. International Food and Trade Workers.
A pork plant in Ottumwa, Iowa, will have no “harvest production” in its first or second shifts on Wednesday, according to a Facebook post that says the company “continues to work on our IT problems.” According to the message, there are some other aspects of the plant in operation.
JBS Canada said in a Facebook post that it operated a shift at its beef plant in Brooks, Alberta, on Tuesday, after canceling shifts earlier in the day and Monday.
The U.S. Cattlemen’s Association, a beef industry group, said on Twitter that it had reports that JBS was redirecting livestock carriers that arrived at plants with animals prepared for slaughter.
Last year, cattle and pigs made backups on U.S. farms and some animals were euthanized when meat plants were shut down during coronavirus outbreaks among workers.
In recent years, ransomware has become an urgent national security issue. Some bands, many of them Russian-speaking, develop software that encrypts files and then require cryptocurrency payment of keys that allow owners to decrypt and reuse them.