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Axios Re:Cap

America’s meat supply gets hacked

Axios Re:Cap

Axios

Daily News, News

4.5705 Ratings

🗓️ 2 June 2021

⏱️ 12 minutes

🧾️ Download transcript

Summary

For the second time in as many months, a major part of America’s infrastructure has been held for ransom by cybercriminals. This time is was a hack of JBS, the nation’s largest beef producer, which was forced to take its largest processing facilities offline. Dan speaks with Laura Reiley, The Washington Post’s business of food reporter, about why the country’s meat supply chain is vulnerable, domino effects from the hack and what it all means for consumer prices.

Transcript

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0:00.0

Hi, I'm Dan Fromak and welcome to Axios Recap, where we dig into one big story.

0:08.0

Today is Wednesday, June 2nd.

0:10.1

Dogecoin prices are up.

0:11.8

U.S. COVID cases keep going down.

0:13.8

And we're focused on how America's meat supply was just attacked.

0:25.2

For the second time in as many months, a major part of America's infrastructure has been hit by hackers looking for a ransom.

0:28.1

The first one was Colonial Pipeline, which supplies around half of all gasoline to the

0:31.7

east coast.

0:33.1

Now it's JBS, the country's largest beef producer and its second largest meat producer overall,

0:39.2

wants you include poultry and pork.

0:41.4

Three things to know.

0:42.6

First, JBS responded by pausing processing at its five largest beef plants, although it also

0:47.8

says that a majority of operations should resume by the end of today.

0:51.8

Two, no word yet on if JBS paid the ransom. But for context,

0:56.5

colonial pipeline said it wouldn't pay anything and then shelled out $4.4 million. Three, meat prices

1:02.6

were already rising before the hack, partially due to drought, climbing 5% between March and April.

1:08.6

And given that the pause JBS plants process more than 22,000 cattle

1:12.7

per day, it's pretty likely the hack will lead to even more expensive burgers and steaks,

1:17.7

although we might not know for a while because the hack also prevented the USDA from calculating

1:23.4

wholesale beef and pork prices. The bottom line is that for all the political talk about what

1:28.8

infrastructure is and isn't, the reality is it's pretty broad, food supply included.

1:35.0

Ransomware hackers know this, which means the only real question now is what pressure

...

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