JBS USA shut down all beef plants after cyberattack, workers' union says

(NEXSTAR) – Major meat producer JBS USA shut down all of its beef plants in the wake of a cyberattack Sunday, according to the union that represents more than 25,000 JBS meatpacking workers.

United Food and Commercial Workers Union officials told Nexstar Tuesday that all beef plants in the U.S. are shut down and all U.S. meatpacking facilities have seen disruption to their operations.

The plants that were non-operational as of Tuesday are located in Arizona, Texas, Nebraska, Colorado, Wisconsin, Utah, Michigan and Pennsylvania, officials said. The company's pork plants were still operational as of Tuesday.

JBS USA did not immediately reply to a request for comment about plant closures.

Officials with the U.S. Department of Agricultures said in a statement that they have "reached out to several major meat processors in the United States to ensure they are aware of the situation, encouraging them to accommodate additional capacity where possible, and to stress the importance of keeping supply moving."

It’s not yet clear what, if any, effect the cyber extortion attempt will have on the price of meat on grocery store shelves.

The statement continued:

USDA has also been in contact with several food, agriculture and retail organizations to underscore the importance of maintaining close communication and working together to ensure a stable, plentiful food supply. USDA will continue to encourage food and agriculture companies with operations in the United States to take necessary steps to protect their IT and supply chain infrastructure so that it is more durable, distributed and better able to withstand modern challenges, including cybersecurity threats and disruptions.

JBS USA said in a statement from Greeley, Colorado, on Monday that it was the target on Sunday of an “organized cybersecurity attack” affecting some of its servers supporting its North American and Australian IT systems.

“The company’s backup servers were not affected and it is actively working with an Incident Response firm to restore its systems as soon as possible,” the statement said.

White House spokeswoman Karine Jean-Pierre told the news agency during an Air Force One trip to Oklahoma Tuesday that the FBI is investigating and officials have reached out to the Russian government after JBS said they were attacked by a “criminal organization likely based in Russia.”

Cyberattack disrupts production in Australia

In Australia, the ransomware devastated production as a work stoppage entered a second day Tuesday. A government minister said it might be days before production resumes.

JBS is also Australia’s largest meat and food processing company, with 47 facilities across the country including abattoirs, feedlots and meat processing sites. JBS employs around 11,000 people.

Australian Agriculture Minister David Littleproud said the government and Australian Federal Police were working with JBS to resolve the problems and to pursue those responsible.

“Despite the fact that JBS accounts for around 20% of our processing production here in Australia, we’re not expecting there to be significant impacts on exports so long as this isn’t a protracted shutdown,” Littleproud said on Tuesday.

“We’re also working with JBS right here in Australia to make sure that we can get some limited capacity up and going in the next couple of days. JBS have been very proactive in that,” he said.

Littleproud said it was too early to say whether it was a ransomware attack or who might be responsible.

Australian staff learned of the attack when they were turned away from their workplaces on Monday.

JBS exports about 70% of what it produces in Australia. But Australia and New Zealand account for only 4% of the company’s global revenue.

Several consignments of cattle in Queensland state were cancelled at short notice and cattle trucks were turned around, Australian Broadcasting Corp. reported.

“We had to send them up on Sunday afternoon and then we got the message in the morning that they’d have to cancel the train because the meat works was going to be shutting for an indefinite amount of time,” Queensland cattle rancher Colin Baker told ABC.

“We had a wasted day . . . because mustering the cattle, sorting them out and then trucking them up there and then we had to bring them home today and let them all go again,” Baker added.

The Associated Press contributed to this report.

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