Another Incoming Disaster Casts Shadow Over Biden’s Presidency

The JBS meat company was attacked by hackers, causing it to stop its operations in both North America and Australia.

JBS’s computer systems were broken into on May 30, it announced during their Monday announcement. The Biden Administration said the hackers wanted a ransom. The company had to temporarily halt plants in Nebraska, Colorado, Texas, Canada and Australia.

JBS produces one-quarter of America’s beef and one-fifth of the nation’s pork, according to The WSJ. The Brazil-based company sold over $50 billion in meat in 2020.

The Biden Administration claims the hackers operate out of Russia, Biden’s deputy press secretary Karine Jean-Pierre stated during a Tuesday conference.

The JBS hack is the second attack in one month to interrupt a major U.S supply chain. The Colonial Pipeline, which gives 45% of the gas consumed on the East Coast, was temporarily halted by the hacker group DarkSide.

That attack caused gas shortages in some states and four governors issued states of emergency following the shortages. Gas prices have spiked after the event, although some experts also blame higher demand and overall inflation.

Meat prices will likely rise as a result of this supply chain disruption, risk management consultant Matthew Wiegand reports.

“If it goes on for multiple days, you will see some shortages,” he said. “The good thing is this was after Memorial Day. We are now lowering in summer demand and bookings.”

Veal and beef increased 1.4%, pork prices increased 2.4%, other meats increased 0.6% and poultry went up 1.1% between March and April 2021, the USDA reported. Those increases were driven solely by demand and possibly inflation.

Author: Steven Sinclaire