Meat Plant Shutdowns Spreading After Cyberattack on JBS
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A cyberattack on JBS SA, the world’s largest meat producer, has forced the shutdown of some of the largest slaughterhouses globally, and there are signs that the closures are spreading.
JBS’ beef plant in Canada, one of the nation’s largest, was shut down on May 31 following the May 30 attack. The company’s slaughter operations in Australia had been halted, a trade group said. A number of plants in the U.S. have been shut and shifts have been canceled, according to labor union representatives.
The prospect of more extensive shutdowns around the world is already upending agricultural markets and raising concerns about food security as hackers increasingly target critical infrastructure. Livestock futures slumped. In the U.S. alone, JBS accounts for almost a quarter of all beef capacity.
The world’s largest meat producer shut its North American and Australian computer networks after an organized assault on May 30 on some of its servers, the company said by email. Without commenting on operations at its plants, JBS said the incident may delay certain transactions with customers and suppliers.
The owner of Pilgrim’s Pride has closed meat processing facilities in Utah, Texas and Wisconsin and canceled shifts at plants in Iowa and Colorado on June 1, according to union officials and employees. Union Facebook posts said some kill and fabrication shifts in the U.S. have also been canceled. JBS didn’t provide comment on U.S. plant closures, though the company said its Brazilian plants are operating normally.
The JBS attack had sidelined two shifts and halted processing at one of Canada’s largest meatpacking plants on May 31, and the company had canceled all beef and lamb kills across Australia, according to industry website Beef Central.
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 USA’s beef and pork units and Pilgrim’s Pride had net revenue of about $40 billion in 2020, according to company filings. The division includes operations in U.S., Canada, Australia, New Zealand, Mexico, Puerto Rico and Europe.
Hackers now have the commodities industry in their crosshairs with the JBS attack coming just three weeks after the operator of the biggest U.S. gasoline pipeline was targeted. It’s also happened as the global meat industry battles lingering COVID-19 absenteeism after recovering from mass outbreaks last year that saw plants shut and supplies disrupted.
The cyberassault affected a Canadian beef plant in Brooks, Alberta, about 118 miles east of Calgary, on May 31, according to Scott Payne, spokesman for United Food and Commercial Workers Canada Union Local 401. The facility accounts for more than a quarter of the nation’s capacity, and according to a job ad, processes about 4,200 head of cattle a day.
A JBS packaging facility in Belleville, Ontario, where beef, pork and salmon are prepared for grocery stores, was operating normally, said Tim Deelstra, a spokesman for UFCW Canada Local 175. In the U.S., the UFCW Local 7 posted on Facebook that kill and fabrication shifts A and B had been canceled for June 1. The Local 7 membership includes 3,000 workers at JBS in Greeley, Colo.
Sao Paulo-based JBS owns facilities in 20 countries. Australia and New Zealand account for 4% of the company’s revenue, while the U.S. represents 50% and Canada 3%, according to company fillings. The company also has operations in South America and Europe.
Backup servers were not affected, and the company is actively working to restore systems as soon as possible, according to a statement from JBS USA May 31. The processor said it’s not aware of any customer, supplier or employee data being compromised or misused.
JBS USA Holdings ranks No. 57 on the Transport Topics Top 100 list of the largest private carriers in North America, and JBS Carriers ranks No. 6 on the list of top agriculture and food processing carriers.
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