Hacked JBS "Factory to Resume Normal Operations Starting Tomorrow"

Photo by AP

[Asia Economy Reporter Yujin Cho] Brazilian oil company JBS SA, which was halted by a cyberattack, announced that it will resume normal operations starting from the 3rd (local time).

In a statement on the 2nd, JBS SA said, "We are making significant progress in recovering from the cyberattack damage," adding, "We expect to operate most of the plants starting tomorrow."

JBS SA's U.S. subsidiary, JBS USA, has also restored most of its computer systems. Andre Nogueira, CEO of JBS USA, said in a statement, "We are sparing no resources to return our systems to normal."

According to the company, JBS USA was hit by a cyberattack on the 30th of last month, particularly affecting the computer networks supporting plants in North America and Australia. However, backup servers were not affected.

Earlier, the White House stated that the ransomware attack on JBS USA is likely the work of a Russia-based criminal organization.

Karine Jean-Pierre, White House Principal Deputy Press Secretary, said at a press briefing that JBS was hit by a ransomware attack on the 30th of last month, and there was a ransom demand from a criminal group believed to be based in Russia.

Professor Trey Malone of Michigan State University explained, "JBS is the second-largest meatpacker in the U.S., and if JBS shuts down for a day, it affects a quarter of the beef distributed in the U.S.," adding, "This is equivalent to about 20,000 head of cattle."

Professor Malone predicted that U.S. meat prices, which were already on the rise due to COVID-19 and severe weather, could increase further.

The U.S. Department of Agriculture also forecasted that beef prices will rise by 1-2% this year, pork by 2-3%, and poultry such as chicken by 1.5%.

This attack occurred less than a month after Colonial Pipeline, the largest U.S. pipeline operator, was hit by a ransomware attack from the hacker group "DarkSide" on the 7th of last month, raising concerns about cybersecurity.

According to AP, some point out that because most production processes are automated, they have become vulnerable to cyberattacks.

This is not the first time a food company has been hit by a ransomware attack. Global beer company Molson Coors suffered a cyberattack in March, causing disruptions in alcohol production and delivery, and it took more than a day to recover from the damage.