Beef producers will feel the pain again

[Dusty Britches]

JBS plant in Nebraska had a massive fire yesterday. They are the largest employer in Grand Island, Nebraska, too.

Firefighters Battle Blaze at Grand Island's largest employer


A fire at Grand Island’s biggest employer is under investigation this afternoon even as firefighters continue to monitor it. NTV's Steve White was on the scene overnight as the blaze was reported at JBS.

[Fmjag64]

Crazy

[Dusty Britches]

This is what happens when there is too much consolidation in the food processing industry. Consumers will face shortages and higher prices and producers will face buying shorts and lower prices. And the guys in the middle laugh all of the way to the bank. They never suffer for their mismanagement (not saying that is the cause here.)

[Arrowsmith]

The JBS plant just north of us in Ottumwa is pork only. They run 24/7/365. That plant slaughters 20,000 pigs a day. The Ottumwa plant shut down two shifts on June 1st on their slaughter line because of a company wide cyber attack. It took them several days to get caught up because two 8 hour shifts were cancelled.

https://www.desmoinesregister.com/story/news/2021/06/01/cyberattack-jbs-disrupts-tuesday-shifts-ottumwa-iowa-pork-plant/7493355002/

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[Dusty Britches]

Mike, that is a prime example of mismanagement. They failed to properly manage their IT security. Their systems should have never allowed a shutdown past 4 hours.

[Arrowsmith]

Mike, that is a prime example of mismanagement. They failed to properly manage their IT security. Their systems should have never allowed a shutdown past 4 hours.

You would think the world's largest meat producer would be better prepared for Russian hackers.

The $11 million ransom is a drop in the bucket to JBS USA, but I am sure it was costly lesson learned nonetheless.

"JBS USA, a processor of beef, pork, poultry and prepared foods, paid an $11 million ransom to hackers after suffering a ransomware cyberattack in late May 2021, JBS's CEO told The Wall Street Journal. The company discovered the attack on May 30, 2021.Jun 9, 2021"

https://www.msspalert.com/cybersecurity-breaches-and-attacks/jbs-status-updates/

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[Bayouboy]

Brazilian company doing Brazilian things.

[Dusty Britches]

I wish $11 Million was a drop in my bucket. Heck, I'd be happy with a $1M drop in my bucket.

[denimdeerslayer]

Well this sucks....was thinking of selling some next week.

[909ag2006]

There was a big lawsuit a year or two ago accusing the four major packing houses of collusion/price-fixing/anti-trust violations. It ended up getting dismissed because the plaintiffs (a few big beef producers and producers organizations) couldn't find enough evidence of the packers working together, even though everyone knows it happens and there was all kinds of circumstantial evidence.

[OldRiverRat]

This is what happens when there is too much consolidation in the food processing industry. Consumers will face shortages and higher prices and producers will face buying shorts and lower prices. And the guys in the middle laugh all of the way to the bank. They never suffer for their mismanagement (not saying that is the cause here.)

this is the case with consolidation in any industry

used to be called monopoly

[Arrowsmith]

I wish $11 Million was a drop in my bucket. Heck, I'd be happy with a $1M drop in my bucket.

Yes. Me too.

JBS's revenue in 2020 was 54.8 billion with profits of 891.5 million so to them it's a drop in the bucket.

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[monsterspike]

*spoiler alert**

lower prices for producers will now coincide with massive profits for packers.

i am going to go ahead and assume that the plant was insured as well.

[IowaHunter]

Yes. Me too.

JBS's revenue in 2020 was 54.8 billion with profits of 891.5 million so to them it's a drop in the bucket.

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May be a drop in the bucket but boy that’s not making squat on $58B.

Good thing many of us have venison in the freezer.

[3whunt]

May be a drop in the bucket but boy that’s not making squat on $58B.

Good thing many of us have venison in the freezer.

Wow. Never realized the margins were only 1.65%. That’s pretty terrible. Here I’ve been thinking the middle man was running a racket. Any clue who is make the money? It sure is t the ranchers.