Meat Producer JBS Curtails Operations After Cyberattack

Meatpacker JBS SA JBSAY 4.16%▲ was hit by a ransomware attack that took a big chunk of U.S. beef-and-pork processing offline, sending buyers scrambling for alternatives and raising pressure on meat supplies.

Brazil-based JBS, the world’s biggest meat company by sales, told the Biden administration that it was the victim of a ransomware attack, White House principal deputy press secretary Karine Jean-Pierre said on Tuesday. She said JBS reported that the attack originated from a criminal group likely based in Russia.

“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,” Ms. Jean-Pierre said. 

JBS had no immediate comment on the White House’s description of the attack. 

The attack halted operations at JBS plants across the U.S. that are among the country’s largest, according to worker representatives and notices shared with JBS employees. JBS facilities in Colorado, Iowa, Minnesota, Pennsylvania, Nebraska and Texas were among those affected. Representatives for JBS had no immediate comment on plant operations. JBS operations in Australia and Canada were affected as well as operations in the U.S., according to the company and social-media posts. 

For JBS, which processes nearly one-quarter of U.S. beef and about one-fifth of the nation’s pork, the attack illustrates a new threat for an industry that was among the hardest hit by Covid-19. As the pandemic arrived in the U.S., tens of thousands of plant workers were infected, according to labor-union estimates, forcing shutdowns last spring that backed up livestock on farms. Meatpackers spent hundreds of millions of dollars to temporarily boost wages, install temperature scanners and place partitions between work stations.

Meat-market analysts said plant closures resulting from the JBS hack could soon lead to higher consumer prices, which have climbed for many cuts this year due to high demand and a tight labor market. “Even one day of disruption will significantly impact the beef market and wholesale beef prices,” wrote analysts for Steiner Consulting Group, which researches the meat industry.