Meat producer JBS USA pays US$11m ransom to cyberattackers

Meatpacker JBS USA paid the equivalent of US$11 million ransom in a cyberattack that disrupted its North American and Australian operations, the company’s CEO said in a statement on Wednesday, Reuters reports.

The subsidiary of Brazilian firm JBS SA halted cattle slaughtering at all of its U.S. plants for a day last week in response to the cyberattack, which threatened to disrupt food supply chains and further inflate already high food prices.

The cyberattack followed one last month on Colonial Pipeline, the largest fuel pipeline in the United States.

It disrupted fuel delivery for several days in the U.S. Southeast.

The JBS meat plants, producing nearly a quarter of America’s beef, recovered faster than some meat buyers and analysts expected.

“This was a very difficult decision to make for our company and for me personally,” said Andre Nogueira, CEO of JBS USA of the ransom payment.

“However, we felt this decision had to be made to prevent any potential risk for our customers.”

The Brazilian meatpacker’s arm in the United States and Pilgrims Pride Corp, a U.S. chicken company mostly owned by JBS, lost less than one day’s worth of food production.

JBS is the world’s largest meat producer. Third parties are carrying out forensic investigations and no final determinations have been made, JBS said. No company, customer or employee data was compromised in the attack, it said.

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