U.S. meat supply hit by suspected Russian ransomware attack on JBS, world's top meat processor
Brazil's JBS, the world's largest meat processor, shut down plants in the U.S., Canada, and Australia on Sunday after being hit with a ransomware attack perpetrated by suspected Russian cybercriminals, JBS and the White House said Tuesday. The suspension of operations significantly disrupted supplies of beef, pork, and chicken in the Australia and North America, but JBS USA chief executive Andre Nogueira said late Tuesday that the company had made "significant progress" in restoring its servers, and "the vast majority of our beef, pork, poultry, and prepared foods plants will be operational" on Wednesday.
JBS is the majority shareholder of Pilgrim's Pride and the No. 2 meat producer in the U.S., and one day of JBS plant closures would take about a quarter of the U.S. beef supply offline, said Trey Malone at Michigan State University.
The U.S. is already seeing high meat prices due to rising demand and sporadic supply tied to the COVID-19 pandemic, Alton Kalo, chief economist at Steiner Consulting Group, told NPR News. How big an impact this ransomware attack has on consumer prices will "depend on whether the JBS issue is a one day or two day problem," or "if it goes on for a week or more." If it's a brief shortage, he said, meat wholesalers and retailers "may just absorb the hit or smooth it out over time" rather than raise prices.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The meat processing industry is heavily automated, and companies like JBS make ideal ransomware targets, Emsisoft cybersecurity threat analyst Brett Callow tells The Associated Press. "They play a critical role in the food supply chain and threat actors likely believe this increases their chances of getting a speedy payout." On the other hand, the meat industry is used to managing short disruptions, industry analyst Mark Jordan told AP, and U.S. consumers typically buy less meat between Memorial Day and the July 4 holiday.
After a ransomware attack on Colonial Pipeline led to panic buying and gas shortages in the Southeast earlier in May, the White House is taking this attack seriously, principal deputy press secretary Karine Jean-Pierre said Tuesday. The FBI is investigating the attack, she said, and the White House "is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
3 tips to lower your household bills
The Explainer Prices on everything from eggs to auto insurance to rent have increased — but there are ways to make your bills more manageable
By Becca Stanek, The Week US Published
-
Crossword: November 11, 2024
The Week's daily crossword
By The Week Staff Published
-
Sudoku hard: November 11, 2024
The Week's daily hard sudoku puzzle
By The Week Staff Published
-
Boeing machinists approve contract, end strike
Speed Read The company's largest union approved the new contract offer, ending a seven-week strike
By Peter Weber, The Week US Published
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
By Peter Weber, The Week US Published
-
Boeing machinists reject deal, continue strike
Speed Read The rejection came the same day Boeing reported a $6.2 billion quarterly loss
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published