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Ransomware Disrupts Meat Vegetation in Newest Assault on Crucial U.S. Enterprise

Ransomware Disrupts Meat Plants in Latest Attack on Critical U.S. Business

A cyberattack on the world’s largest meat processor forced the closure of nine beef factories in the United States and interrupted production in poultry and pork factories, according to union officials on Tuesday. The attack could shake the country’s meat markets and raise new questions about the vulnerability of critical American companies.

JBS said most of its plants would reopen on Wednesday. But even a one-day disruption to JBS could “significantly affect” wholesale beef prices, according to analysts for the Daily Livestock Report.

The attack at JBS was a ransomware attack, the White House said – the second recent attack of its kind to freeze a critical US business. Last month, a ransomware attack on the Colonial Pipeline, which carries gas to nearly half of the east coast, sparked gas and kerosene bottlenecks and panic buying.

JBS, which is based in Brazil and accounts for one-fifth of the US daily cattle harvest, said in a statement late Tuesday that it has made “significant strides in solving the cyberattack.”

“Our systems are coming back online and we are not sparing resources to combat this threat,” said Andre Nogueira, CEO of JBS USA, in the statement.

The Department of Agriculture announced Tuesday that it is working with other producers to minimize bottlenecks.

All nine JBS beef factories in the United States closed on Tuesday, according to the United Food and Commercial Workers International Union, which represents workers at JBS beef and pork factories. The company’s poultry and pork factories in the US posted on Facebook that they had canceled shifts scheduled for Monday or Tuesday or changed production, some citing “IT problems”.

In addition to the company’s U.S. plants, the shutdowns affected 2,500 workers at a beef factory in Brooks, Alberta, according to Scott Payne, a spokesman for United Food and Commercial Workers Local 401 in Canada. “All shifts were canceled yesterday,” he said on Tuesday. “The morning shift was canceled today. But the afternoon shift has been postponed to today. “

When the plants went online, at least one beef factory delayed the start of production on Wednesday and another changed one of its shifts, according to the factories.

With restaurants and retail customers starting to buy beef in the summer, the wholesale market was “extremely tight,” the analysts for the Daily Livestock Report wrote in a report released on Tuesday. They discovered that a small restaurant in southern Utah had started charging an additional $ 4 for dishes that included carne asada.

“Retailers and beef processors are coming back from a long weekend and need to catch up on orders and make sure the meat crate is full,” the analysts wrote. “If you suddenly get a call that the product may not be delivered tomorrow or this week, it will create very big challenges when it comes to keeping the equipment up and running and keeping the retail case in stock.”

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June 1, 2021, 12:59 p.m. ET

A prolonged hiatus, the analysts warned, “could add gasoline to an already large flame”.

JBS said it was the target of an “organized cybersecurity attack” that affected systems in North America and Australia, that its backup servers were unaffected, and that it did not expect customer, supplier or employee information to be leaked.

Karine Jean-Pierre, a White House deputy press secretary, told reporters at Air Force One Tuesday that JBS had told the Biden government that it was a ransomware attack and that the ransom was from “a criminal organization based in Russia “came.”

The Federal Bureau of Investigation investigated the hack, and the Cybersecurity and Infrastructure Security Agency was also involved, Ms. Jean-Pierre said.

“The White House is working directly with the Russian government on this matter, sending the message that responsible states do not harbor ransomware criminals,” she said.

In two weeks’ time, President Biden is due to meet Russian President Vladimir V. Putin in Geneva for a summit that puts a multitude of cyberattacks, many of which originate from Russia, at the top of the American agenda.

A recent security breach used SolarWinds software to infiltrate more than 250 federal agencies and companies. It was considered the worst attack because it raised the question of whether the United States could trust its software supply chain. SolarWinds, according to the United States, is the work of the SVR, one of the leading Russian intelligence agencies.

Last week, the SVR was blamed for a breach that hijacked the company that distributes emails on behalf of the US Agency for International Development and sent links containing malware to organizations criticizing Putin.

But ransomware attacks have become more urgent after hackers hit the Colonial Pipeline last month. The pipeline operator shut down its systems after the attack, which led to price rises, panic buying and a shortage of jet fuel. The company later admitted it paid $ 4.4 million to restore its data.

The attack on the Colonial Pipeline was the work of a ransomware operator called DarkSide, which Biden said was based in Russia.

The perpetrator behind the JBS attack has not been publicly identified. Cybersecurity specialists said Tuesday blogs and online channels frequented by large ransomware groups have gone silent – most likely because the group in charge was waiting to see if JBS would pay.

The US government does not know how to deal with the attacks, as many of the responsible groups operate from Russia, where they largely enjoy a safe haven. Russia has refused to extradite its hackers and frequently attacks them for sensitive intelligence operations.

Mr Biden said after the attack on the Colonial Pipeline that Russia was partly responsible, although there was no evidence that the government was involved.

“We were in direct communication with Moscow to get responsible countries to take decisive action against these ransomware networks,” said Biden. “We will also take action to disrupt their operability.”

He did not rule out the possibility of the US launching a cyber attack against the criminals responsible for the pipeline attack. Following Mr Biden’s remarks, DarkSide criminals said they would close, despite cybersecurity experts warning that they would likely be renamed and reappear.

David E. Sanger and William P. Davis contributed to the coverage.

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Business

Creating Asia’s first whole-plant primarily based various meat model

Creating Asia's first whole-plant based alternative meat brand

The appetite for alternative meat is growing worldwide.

With increasing awareness of the nutritional and environmental effects of meat consumption, producers and consumers are looking for various sources to meet the continuing demand for protein.

One of them is Dan Riegler, whose evolving relationship with meat inspired him to co-found Karana.

“I’ve been a vegan skeptic, a carnivore for much of my life, and I’ve taken a big turn,” Riegler told CNBC Make It.

A meat alternative for Asia

Karana is the food start-up in Singapore that is positioning itself as Asia’s first plant-based meat brand. The flagship – a substitute for pulled pork – is made entirely from jackfruit, oil, and salt, with no processed ingredients or preservatives.

Started in 2018 when the demand for meat alternatives increased, Riegler saw a market niche for meat substitute products that were specially developed for Asian cuisine.

We saw a great need to identify products with more local applications for APAC.

And Riegler

Co-founder Karana

“We saw a great need to identify products with more local applications for APAC,” said Riegler, now 35, who built a career in agricultural supply chains across Southeast Asia.

“Pork is the number one meat consumed in this region and we haven’t seen many products there that are really tailored to a need.”

Asia is responsible for producing and consuming half of the world’s pork.

CNBC

In fact, half of the world’s pork is produced and consumed in Asia, with most of that demand coming from China.

So Riegler and his co-founder Blair Crichton, formerly Impossible Foods, which also produces plant-based meat alternatives, set out to find an environmentally friendly alternative.

Creating Pork from Jack All

It wasn’t long before the couple identified Karana’s first product: a jackfruit pork substitute sourced from smallholders in Sri Lanka.

Jackfruit has a long history in South and Southeast Asian cuisine, especially in vegetarian and vegan dishes. The unripe young jackfruit is known for its tightly packed, fibrous texture and meat-like properties. It is widely used in savory foods, while the sweet ripe jackfruit is consumed raw.

Jackfruit is widely used in many South and Southeast Asian dishes.

CNBC

“Jackfruit as a harvest does not need irrigation, does not need pesticides, does not need herbicides. So it is a very robust tree, and when it bears fruit, it is very, very productive,” said Carsten Carstens, scientific director of Karana and first hire.

In fact, there are so many jackfruit in the region that tons of them are wasted every year. This is due in part to the complexity of the preparation and cooking.

We knew jackfruit was not reaching its potential.

And Riegler

Co-founder Karana

“The formats it was available in … just weren’t exciting to us. They were very difficult to work with, they didn’t give interesting textures and end results, and we knew jackfruit was not reaching its potential.” Said Riegler.

So the founders set about adapting the fruit for a mass market – and soon developed a chemical-free, mechanical process at their Singapore manufacturing facility to convert the fruit into a shredded, meat-like product that is easy for cooks and consumers to use.

“Our intention was really to create something that chefs can use to create fantastic dishes,” said Carstens. “It’s just too labor-intensive for the modern kitchen in a modern establishment (food and beverages).”

Opening up a growing market

Karana’s invention whets the appetite for more ethical and sustainable foods growing across Asia and beyond.

Even before the pandemic, the alternative meat market was estimated at $ 140 billion, or 10% of the world’s meat industry, within a decade.

The alternative meat industry is estimated to be worth $ 140 billion by 2029.

Barclays

Mirte Gosker, acting executive director of the Good Food Institute in Asia Pacific, said the demand for meat substitutes in Asia is increasing as awareness of food safety and nutrition increases.

“Here in Asia we see a real demand for healthy products with high nutritional value,” said Gosker. “And especially in China, one of the reasons people buy plant-based meat, actually the biggest reason, is a desire to lose weight.”

Animal husbandry is currently making the largest two or three contributions to the most pressing environmental challenges on our planet.

Myrtle Gosker

Acting Managing Director of the Good Food Institute Asia Pacific

In addition, the environmental impact of traditional animal husbandry is no longer sustainable.

“Animal husbandry is currently making the largest two or three contributions to the most pressing environmental challenges on our planet. These include air pollution, water pollution, water scarcity and loss of biodiversity,” said Gosker.

“If we didn’t use these fields to grow animal feed, we could actually use these fields for reforestation, to create greater biodiversity or, for example, for renewable energies,” she added.

Whet the appetite of investors

The investment community also sees the benefits of alternative proteins. Global investment in alternative proteins increased 300% in 2020 alone, according to the Asia-Pacific Good Food Institute.

In July 2020, Karana raised $ 1.7 million in seed capital from investors such as Big Idea Ventures, a plant-based food fund backed by Singapore state-owned investment company Temasek and US meat company Tyson Foods.

Karana’s flagship product is a pulled pork substitute made entirely from jackfruit, oil, and salt.

Karana

The investment fueled the company’s 2021 debut in Singapore, where the whole plant’s pork is now available and counted in nine restaurants – from dumplings to “ngoh hiang,” a local pork bun.

Next up is the Hong Kong launch as well as the launch of a range of ready-to-cook retail products. In the meantime, Karana will be able to continue experimenting with jackfruit and other whole plant meat substitutes by investing in a new innovation laboratory.

The more good products there are, the more consumers will increasingly switch to herbal products.

And Riegler

Co-founder Karana

Categories
Health

The plant-based meat trade is on the rise, however challenges stay

The plant-based meat industry is on the rise, but challenges remain

A visitor tries a plant-based meat substitute at the Restaurant & Bar and Gourmet Asia Expo at the Hong Kong Convention and Exhibition Center in Hong Kong on November 11, 2020.

Peter Parks | AFP | Getty Images

SINGAPORE – The demand for meat alternatives has increased and will continue to increase, but the industry still has hurdles to overcome in various parts of the world, analysts said.

According to Google Trends, global search interest for the term “plant-based meat” skyrocketed in early 2019 months before Beyond Meat went public.

The global meat substitute sector is valued at $ 20.7 billion and is expected to grow to $ 23.2 billion by 2024, market research firm Euromonitor told CNBC.

This growth is being fueled by concerns ranging from animal welfare to food security to the Covid-19 pandemic.

“In times of shock and instability, building a low-risk value chain means focusing on opportunities, and the shift towards plant-based meat is showing no signs of slowing,” said Elaine Siu, executive director of The Good Food Institute Asia -Pacific.

However, obstacles remain for the burgeoning market.

Cultural barriers

The plant-based meat market in Asia could be constrained by established perceptual issues, Siu said.

For example, pig meat, or vegetarian meat, used to be mainly eaten by Buddhist practitioners in China, she said.

“The replication of the taste and texture of meat has never been pushed beyond relatively basic levels,” she said, adding that these traditional products serve a specific purpose and “are considered to be of limited appeal to certain groups.”

“In order for plant-based meat to develop its full market potential in Asia, the sector must continue to break away from its association with traditional fake meat, which is expected to be sold at a low price and which carries historical image baggage.” said Siu.

Objections from the traditional meat industry

Ranchers could also stand in the way of the alternative protein sector, particularly in the US, said Simon Powell, global head of thematic research at the American bank Jefferies.

The US Cattlemen’s Association filed a petition in 2018 calling for an official definition of the terms “beef” and “meat” to keep vegetable proteins out of the description.

A herd of cattle gathers in the shade of an old barn in Owings, Maryland on May 4, 2020.

Mark Wilson | Getty Images News | Getty Images

“Incumbent producers will be working hard with their governments to change labeling and play around with consumer advertisements to say it can’t be called meat,” Powell told CNBC of Zoom. “I think that’s possibly one of the biggest obstacles.”

The European Union rejected proposals in October to ban restaurants and shops from using words such as sausage or burger to describe meat alternatives.

Consumer confidence, consumer fatigue

Powell added that if any of the vegetable meat companies had “an accident” or an issue with their recipe that resulted in a “massive recall”, customers could fear consuming these alternatives.

“This is a big ‘if’ … but if they have a big recall of products, it could hurt consumer confidence,” he said. “Eventually you will get these events. It will set the industry back a little.”

Separately, Powell said the “instagrammability” of plant-based foods is one reason the market is growing “all over the world”. The market’s growth could be hampered as the novelty of meat alternatives wears off or wears off, he said.