Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JBS meat plants reopen as White House blames Russia-linked group over hack

Stock MarketsJun 02, 2021 09:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A general view of the JBS USA Worthington pork plant in Minnesota, U.S., October 28, 2020. REUTERS/Bing Guan/File Photo/File Photo

By Nandita Bose and Tom Polansek

WASHINGTON/CHICAGO (Reuters) -JBS SA employees started returning to U.S. meat plants on Wednesday, a day after the company's beef operations stopped following a ransomware attack, disrupting meat production in North America and Australia.

A notorious Russia-linked hacking group is behind the cyberattack against JBS, a source familiar with the matter said.

Brazil's JBS controls about 20% of the slaughtering capacity for U.S. cattle and hogs, so the plants' reopening should prevent a severe supply-chain disruption.

JBS, the world's largest meatpacker, said most operations resumed on Wednesday, "including all of our pork, poultry and prepared foods facilities around the world and the majority of our beef facilities in the U.S. and Australia."

"We anticipate operating at close to full capacity across our global operations tomorrow," JBS USA Chief Executive Andre Nogueira said in a statement.

The cyberattack followed one last month by a group with ties to Russia on Colonial Pipeline, the largest fuel pipeline in the United States, which crippled fuel delivery for several days in the U.S. Southeast.

It is the third major attack this year tied to Russia, and White House press secretary Jen Psaki said on Wednesday the JBS hack was expected to be discussed at President Joe Biden's mid-June summit with Russian President Vladimir Putin.

"We're not taking any options off the table in terms of how we may respond, but of course there's an internal policy review process to consider that. We're in direct touch with the Russians, as well, to convey our concerns about these reports," Psaki added.

"President Biden certainly thinks that President Putin and the Russian government has a role to play in stopping and preventing these attacks."

The Russia-linked cyber gang goes by the name REvil and Sodinokibi, the source said.

Cybersecurity investigators have said they believe some members of the REvil ransomware team are based in Russia. The prolific ransomware group, which is perhaps best known for attacking an Apple Inc (NASDAQ:AAPL) supplier named Quanta Computer Inc earlier this year, previously posted in Russian on cyber-crime forums, marketing stolen data.

In the Quanta Computer case, the hackers sent extortion threats and demanded a payment of $50 million for the company to regain access to its systems.

Over the past few years, ransomware has evolved into a pressing national security issue. A number of gangs, many of them Russian speakers, develop the software that encrypts files and then demand payment in cryptocurrency for keys that allow the owners to decipher and use them again.

SCRAMBLING FOR BEEF

With North American operations headquartered in Greeley, Colorado, JBS sells beef and pork under the Swift brand, with retailers like Costco Wholesale Corp (NASDAQ:COST) carrying its pork loins and tenderloins.

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.

"It's probably going to be pretty tight for the next few days because even though they (JBS) are going to start opening ... who knows how they are going to run," said Altin Kalo, economist at Steiner Consulting Group. "There's a fair amount of people that are scrambling (for beef supplies)."

U.S. meatpackers on Wednesday slaughtered 12.5% fewer cattle than a week earlier and 8% less than a year earlier, although slaughtering was up about 12% from Tuesday, according to estimates from the U.S. Department of Agriculture.

Plants are expected to return to full capacity in the next couple days, said officials with the United Food and Commercial Workers (UFCW) International Union, which represents over 25,000 JBS meatpacking workers.

JBS also owns most of chicken processor Pilgrim's Pride (NASDAQ:PPC) Co, which sells organic chicken under the Just Bare brand.

The company's operations in Brazil, Mexico and the UK were not affected by the attack, JBS said.

Chicago Mercantile Exchange (CME) cattle futures rose on Wednesday after tumbling on Tuesday as the JBS plant shutdowns prevented farmers from delivering their cattle to slaughter plants.

The attack drew attention to the concentrated beef sector in the United States, where four companies including JBS slaughter over 80% of fed cattle and shutdowns of slaughtering plants have a severe impact on prices that ranchers are paid for their cattle.

"The Justice Department needs to take a serious look into the meatpacking industry, and if they cannot, Congress needs to pass reforms that protect a fair and open cattle market," U.S. senators led by Republican Mike Rounds of South Dakota and Democrat Tina Smith of Minnesota wrote in a letter to Attorney General Merrick Garland.

JBS meat plants reopen as White House blames Russia-linked group over hack
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Jokers R Us
Jokers R Us Jun 02, 2021 11:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This government blames Russia over everything
Jody Darden
Jody Darden Jun 02, 2021 8:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Someone tell biden govt computers aren't toys
Vlad Lozovskiy
Vlad Lozovskiy Jun 02, 2021 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden will offer another handouts like Nordstream2 to Russian to try to calm down Putin.
Silence Dogood
Silence Dogood Jun 02, 2021 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why is it that America doesn't hack the h#ll out of Russia's indistries?
EU Commissioner
EU Commissioner Jun 02, 2021 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They are attacking russian companies on daily basis, and not only with hacking.
danny Levine
danny Levine Jun 02, 2021 8:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nah NSA and CIA only hack ourselves lol
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email