The world’s largest meat processing company is getting back online after production around the world was disrupted by a cyberattack just weeks after a similar incident shut down a U.S. oil pipeline.
Brazil’s JBS SA said late Tuesday that it had made “significant progress” in dealing with the cyberattack and expected the “vast majority” of its plants to be operating on Wednesday.
“Our systems are coming back online and we are not sparing any resources to fight this threat,” Andre Nogueira, CEO of JBS USA, said in a statement.
Earlier, the White House said JBS had notified the U.S. of a ransom demand from a criminal organization likely based in Russia. White House principal deputy press secretary Karine Jean-Pierre said the White House and the Department of Agriculture have been in touch with the company several times this week.
JBS is the second-largest producer of beef, pork and chicken in the U.S. If it were to shut down for even one day, the U.S. would lose almost a quarter of its beef-processing capacity, or the equivalent of 20,000 beef cows, according to Trey Malone, an assistant professor of agriculture at Michigan State University.
The closures reflect the reality that modern meat processing plants are heavily automated, for both food- and worker-safety reasons. Computers collect data at multiple stages of the production process, and orders, billing, shipping and other functions are all electronic.
JBS, which has not stated publicly that the attack was ransomware, said the cyberattack affected servers supporting its operations in North America and Australia. Backup servers weren’t affected and it said it was not aware of any customer, supplier or employee data being compromised.
JBS plants in Australia resumed limited operations as of Wednesday in New South Wales and Victoria states, Agriculture Minister David Littleproud said. The company hoped to resume work in Queensland state on Thursday, he said.
JBS is the largest meat and food processing company in Australia, with 47 facilities including abattoirs, feedlots and meat processing sites.
Littleproud said his department and Australian law enforcement officials were due to meet with their counterparts in the U.S. on Wednesday.
Even before the attack, U.S. meat prices were rising due to coronavirus shutdowns, bad weather and high plant absenteeism. Malone said the disruption could further raise meat prices ahead of summer barbecues. The U.S. Department of Agriculture estimates beef prices will climb 1-2 percent this year, poultry as much as 1.5 percent and pork 2-3 percent.
JBS, which is a majority shareholder of Pilgrim’s Pride, didn’t say which of its 84 U.S. facilities were closed Monday and Tuesday because of the attack. It said JBS USA and Pilgrim’s were able to ship meat from nearly all of its facilities Tuesday. The company also said it was making progress toward resuming plant operations in the U.S. and Australia. Several of the company’s pork, poultry and prepared foods plants were operational Tuesday and its Canada beef facility resumed production, it said.
Earlier Tuesday, a union official confirmed that two shifts at the company’s largest U.S. beef plant, in Greeley, Colorado, were canceled. Some plant shifts in Canada were also canceled Monday and Tuesday, according to JBS Facebook posts.
Jean-Pierre said 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.” The FBI is investigating the incident, and the Cybersecurity and Infrastructure Security Agency is offering technical support to JBS.
In addition, USDA has spoken to several major meat processors in the U.S. to alert them to the situation, and the White House is assessing any potential impact on the nation’s meat supply.
JBS has more than 150,000 employees worldwide.
U.S. meat demand generally eases for a few weeks between Memorial Day and the July 4 Independence Day holiday.
But such attacks can wreak havoc. Last month, a gang of hackers shut down operation of the Colonial Pipeline, the largest U.S. fuel pipeline, for nearly a week. The closure sparked long lines and panic buying at gas stations across the Southeast. Colonial Pipeline confirmed it paid $4.4 million to the hackers.
By Rod McGuirk and Dee-Ann Durbin