Reuters' Jarrett Renshaw and Stephanie Kelly reported Tuesday that "the White House will approve a request from a group of Midwest governors to allow year-round sales of gasoline with higher…
Jacob Bunge reported on the front page of Wednesday’s Wall Street Journal that, “Meatpacker JBS SA 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.
“The attack ratcheted up pressure on a food-supply chain already under strain from labor shortages, production constraints and high transportation costs. Late Tuesday, a company executive said JBS was making progress toward restoring its systems, and that the majority of its meat plants would be operational Wednesday.
“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 cyberattack on meat producer JBS likely came from a criminal organization based in Russia, the White House said.— Bloomberg Quicktake (@Quicktake) June 1, 2021
The hack, reported Sunday, forced the shutdown of some of the largest slaughterhouses, wiping out about a fifth of America's production https://t.co/LkVCCIn6pt pic.twitter.com/3koiPVDD35
Mr. Bunge noted that, “At JBS, the attack halted operations at meat plants that are among the largest in the U.S., according to worker representatives and notices shared with JBS employees. JBS facilities in Colorado, Iowa, Minnesota, Pennsylvania, Nebraska and Texas were among those affected.
Karine Jean-Pierre on whether the JBS ransomware attack (by criminals based in Russia) changes anything about Biden's Putin meeting: "We do not regard the meeting with Russia's Putin as a reward. Biden is meeting with Putin because of our differences, not in spite of them."— Christina Wilkie (@christinawilkie) June 1, 2021
The Journal article added that, “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 because of 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.”
Just spoke w CEO of JBS abt this wkends cyberattack which is direct attack on those that work hard 2provide food for our families / US must find these criminals & hold them accountable Food security = national security I told JBS they need to keep me updated on impact on Iowa too— ChuckGrassley (@ChuckGrassley) June 1, 2021
Bloomberg writers Mike Dorning, Fabiana Batista, and Sybilla Gross reported on Wednesday that, “JBS SA, the world’s largest meat producer, has made ‘significant progress‘ to resolve the cyberattack that hit its global operations and will have the ‘vast majority’ of its plants operational on Wednesday.
Cyber security is synonymous with national security, and so is food security. Soon, a bipartisan effort to further secure our food and #cybersecurity must take shape. It’s of the upmost importance for our nation and for the world. https://t.co/3LN0lElhQQ— Rep Rick Crawford (@RepRickCrawford) June 1, 2021
“‘Our systems are coming back online and we are not sparing any resources to fight this threat,’ JBS USA Chief Executive Officer Andre Nogueira said in a statement late Tuesday. A union Facebook post said a shift at Greeley in Colorado was set for a regular production day on Wednesday.
My staff and I are closely following the JBS cyberattack.— Joni Ernst (@SenJoniErnst) June 1, 2021
As details emerge, let’s get our facilities back online as soon as possible and work to ensure those responsible are held accountable. https://t.co/kF7OPdmGoF
“The cyberattack forced the shutdown of all of JBS’s U.S. beef plants, which account for almost a quarter of American supplies, according to an official with the United Food and Commercial Workers International Union, which represents workers at the company’s plants in the U.S. All other JBS meatpacking facilities in the country experienced some level of disruption, according to the official.”
I am continuing to monitor the JBS cyberattack. Our team has been in contact with JBS & stands ready to support them in any way we can. It is important to the company, its employees, and the entire ag industry that JBS’s system is fully restored as soon as possible. #IA01— Ashley Hinson (@RepAshleyHinson) June 1, 2021
The Bloomberg writers explained that, “So far, it’s unclear what the impact on meat prices will be from this latest attack. Retailers don’t always like hiking prices on consumers and may try to resist, according to Michael Nepveux, an economist with the American Farm Bureau Federation. ‘How long it goes on will impact to what level consumers start to see something at the grocery stores,’ he said in a phone interview.
“Livestock producers could see some of the more immediate blow. Chicago cattle futures slumped as much as 3.4% Tuesday, before trimming losses. The slaughterhouse closures are exacerbating an existing supply glut of animals.”
“In Asia, the country most at risk from any prolonged shutdown is China, the world’s biggest beef importer. Beef prices are already near a record, and any lengthy supply disruption could push up prices even more and stoke food inflation fears. About 30% of JBS’s export revenue comes from Greater China.
It’s alarming to see another cyberattack against a crucial supply chain. JBS is taking action to resolve this issue. However, the fact that nearly 20% of US meat processing capacity can go offline due to a single event could be a hit to NE, the cattle market, & consumers.— Senator Deb Fischer (@SenatorFischer) June 1, 2021
And Washington Post writers Hamza Shaban, Ellen Nakashima and Rachel Lerman reported on Tuesday that, “Experts say it’s too soon to determine how the JBS cyberattack will affect meat supply chains — a significant concern for an industry that has been battered by a wave of disruptions that predate the coronavirus pandemic.”
On Wednesday, Reuters News reported that, “JBS SA employees were scheduled to return to U.S. meat plants on Wednesday, a day after the company’s beef operations stopped following a ransomware attack.”
“U.S. beef and pork prices are already rising as China increases imports, animal feed costs rise and slaughterhouses have confronted a labor shortage since COVID-19 outbreaks shut down many U.S. meat plants,” the Reuters article said.