In this file:
· JBS Plants Limp Back From Hack With Old-School Manual Labor
· JBS begins reopening meat plants impacted by weekend cyber attack
JBS Plants Limp Back From Hack With Old-School Manual Labor
Kim Chipman, Michael Hirtzer and Elizabeth Elkin, Bloomberg
via Yahoo Finance - June 3, 2021
(Bloomberg) -- JBS SA workers returning to a meat-processing plant in Texas on Wednesday afternoon were told to be ready to do things a bit differently than normal: Work by hand.
With everything from knife sharpening to production-line speed controls relying on automation, coming back from a cyberattack that forced the world’s largest meat producer to halt operations across the globe is set to be a bumpy ride. Because the plants are coming back online without some of their systems in service, there will be a lot more manual work than usual.
“There’s a lot of automation, there’s a lot of reliance on technology,” said Wendell Young, head of the United Food and Commercial Workers’ local union representing 1,500 members at JBS’s beef slaughterhouse in Souderton, Pennsylvania. “You can disconnect some of those wires and switches and run things old-school, but before you do, you want to make sure that everything’s running smoothly.”
Sunday’s cyberattack forced the Brazilian food giant to shut down all of its beef plants in the U.S. -- accounting for almost a quarter of American supplies -- and slow pork and poultry production. Slaughtering operations across Australia were halted and at least one Canadian plant was idled. JBS, which has facilities in 20 countries, also owns Pilgrim’s Pride Corp., the second-biggest U.S. chicken producer. The extent of the outages may never be known as JBS didn’t detail the impact...
JBS begins reopening meat plants impacted by weekend cyber attack
Jon Condon, BEEF Central (AU)
AUSTRALIAN beef and lamb processing plants controlled by JBS are likely to resume normal operations either Friday or early next week, Beef Central understands.
In the United States, the company’s factories are also getting back to work from today, as JBS’s response to the major weekend security breach takes effect.
Some JBS Australia plants did in fact complete a boning shift yesterday, but that was simply to clear carcases held in cold storage from kills performed last Friday, before the cyber-attack occurred...
US market impact
Beef Central’s US-based columnist Steve Kay yesterday said USDA’s daily US kill figures for Tuesday showed a national US beef kill of about 94,000 head – down 27,000 head on this time last week, suggesting JBS may have had a ‘minimal’ beef kill, at best, at one or more plants. JBS’s total US beef slaughter capacity (red and unfed) was about 29,000 head, he said.
The company’s five largest US plants in Nebraska, Texas, Utah and Wisconsin which all stopped processing on Tuesday, accounted for about 22,000 head per day on their own, a Bloomberg report said.
The impact from Tuesday’s closures and cyber ransom news alone had been ‘significant,’ and had attracted widespread mainstream media coverage across the US.
Mr Kay said the US boxed beef cutout (wholesale prices, reported daily) went up by US$3/cwt for Choice, and US$5.55c for Select grade on Tuesday compared with Friday (Monday was a Memorial Day holiday).
That was directly attributed to other US packers pushing up their prices, because of the reduced supply in the absence of JBS.
“The key factor now is how quickly JBS can get its operations in North America and Australia up and running again. If it’s a matter of only two or three days, it will not produce much market impact. But if it drifts into next week, it is going to be more significant,” Mr Kay said.
“The lesson out of this episode for the worldwide meat industry is that they have suddenly realised – if they had not done so before – that they are vulnerable to cyber attack. They are going to have to redouble their efforts and spend a whole lot more to get the best cyber-protection mechanisms money can afford.
“Unfortunately it’s just a part of doing business in today’s world – and for red meat processors, computer systems and connectivity are just absolutely crucial to the day to day running of all parts of their business.”
US plants resume ...
IT issues the New Normal? ...
Domestic meat supply remains unaffected ...