Brazilian beef producer, JBS, was forced to close many of its slaughterhouses following a cyber attack on its servers. Cattle farms globally have also been affected, with countries ranging from Australia to Canada also “paralyzed” from the attack. The suspension of facilities means that “a full 23 percent of the American beef-producing industry is on pause.”
So what?
This follows the ransomware attack earlier this year on the East Coast’s gasoline supply, which was also immobilized. Whilst the attackers responsible for the beef farm have yet to be identified, the series of events highlights a serious weakness in global supply chains. Are they as resilient as they need to be? And will this spur a much needed improvement in cyber security across supply chains?
Just posting a quick update on this one – it looks like the supply crunches for meat are translating into higher prices for meat worldwide – which are hitting demand. This has the potential to boost a long term transition towards plant-based diets. See https://www.bloomberg.com/news/newsletters/2021-07-02/supply-chains-latest-meat-is-getting-so-expensive-people-are-cutting-back