Meat producer ransomware attack disrupts Iowa, global production

JBS SA’s five biggest beef plants in the United States — which altogether handle 22,500 cattle a day — halted processing following a weekend ransomware attack on the Brazilian company’s computer networks, according to JBS posts on Facebook, labor unions and employees.

Those outages wiped out nearly a fifth of America’s production.

JBS has extensive facilities in the United States, including three plants in Iowa — in Marshalltown, Ottumwa and Council Bluffs. The Ottumwa facility’s Facebook page said its “1&2 harvest and no 1&2 bacon slicing“ departments were closed for Tuesday.

Slaughter operations across Australia were also down, according to a trade group, and one of Canada’s largest beef plants was idled.

JBS notified the United States of a ransom demand from a criminal organization likely based in Russia, White House principal deputy press secretary Karine Jean-Pierre confirmed Tuesday. Jean-Pierre said the White House and the Department of Agriculture have been in touch with the company several times this week.

U.S. stock markets also reacted Tuesday as livestock futures slumped and pork prices rose.

JBS has not stated publicly that the attack was ransomware, citing “an organized cybersecurity attack” on its website Monday. It added that it “is not aware of any evidence at this time that any customer, supplier or employee data has been compromised or misused as a result of the situation.”

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, the USDA has spoken to several major meat processors in the United States to alert them to the situation, and the White House is assessing any potential impact on the nation’s meat supply.

In a statement Sunday, JBS said the cyberattack affected servers supporting its operations in North America and Australia. The company said it notified authorities and engaged third-party experts to resolve the problem as soon as possible.

Backup servers, it said, weren't affected.

JBS employs more than 66,000 people at 84 locations in the United States It has around 11,000 employees in Australia.

“It is important to the company, its employees and the entire agriculture industry that JBS’s system is fully restored as soon as possible,” U.S. Rep. Ashley Hinson, whose 1st District includes Marshalltown, said in a statement.

Rep. Randy Feenstra, an Iowa Republican who represents the northwest corner of the state, including Harrison County, also said he is monitoring the situation.

"This is very concerning, and I'll be keeping a close eye on how this will impact beef prices and the cattle market moving forward," Feenstra tweeted.

U.S. Sen. Chuck Grassley tweeted Tuesday that he had spoken with JBS officials. He labeled the hack as a "direct attack on those that work hard 2 provide food for our families / US must find these criminals & hold them accountable Food security = national security.”

Sen. Joni Ernst tweeted on Tuesday that, "As details emerge, let's get our facilities back online as soon as possible and work to ensure those responsible are held accountable."

The attack on the world's largest meat processing company came just weeks after a similar incident shut down a U.S. oil pipeline.

Ransomware expert Brett Callow, a threat analyst at the security firm Emsisoft, said companies such as JBS make ideal targets.

“They play a critical role in the food supply chain and threat actors likely believe this increases their chances of getting a speedy payout,” Callow said.

Associated Press and Bloomberg News contributed to this report.

Nonpareil News Editor Mike Brownlee contributed to this report.