Astral Foods, South Africa’s largest chicken producer, suffered over $1 million in losses from a cyberattack on March 16 that disrupted delivery and processing operations. The company confirmed the restoration of normal operations without any data compromise but warned of reduced earnings due to the week-long outages. The incident reflects a broader trend of increasing ransomware threats within the agricultural sector.
Astral Foods, South Africa’s largest chicken producer, incurred a loss exceeding $1 million following a cyberattack on March 16. The attack compelled the company to activate its disaster recovery protocols, severely impacting delivery schedules and operations across its chicken and egg production, as well as animal feed manufacturing businesses. As a result, Astral Foods reported a total profit loss of approximately 20 million rand due to processing and delivery disruptions, leading to revenue backlogs.
Following the incident, Astral Foods assured stakeholders that, as of the announcement date, all business units had resumed normal operations. The company emphasized that no sensitive data or confidential information belonging to customers, suppliers, or stakeholders was compromised during the cyber intrusion. However, management warned investors of a significant decrease in earnings per share for the current financial period, which closes next week, owing to the week-long shutdown.
Despite the substantial impact on operations, Astral Foods did not disclose details regarding the nature of the cyberattack or the perpetrators involved. Interestingly, no ransomware group has thus far claimed responsibility for the incident. This highlights a disturbing trend, as large agricultural institutions frequently fall victim to ransomware attacks, often resulting in significant financial losses. For instance, in 2023, the Food and Agriculture-Information Sharing and Analysis Center reported at least 167 ransomware attacks targeting the sector.
Numerous prominent food producers, including JBS, Dole, Sysco, and Mondelez, have encountered similar attacks over recent years. The U.S. Department of Agriculture also reported an incident involving a ransomware group exploiting a well-known file transfer tool, compromising extensive industry data. Previous ransomware incidents have led to severe financial repercussions, with one farm alone suffering a loss of $9 million in 2021, underscoring the risk posed to the agricultural sector.
In summary, Astral Foods faced a significant financial blow from a cyberattack that disrupted its operations and delivery schedule, resulting in a profit loss of approximately $1 million. While the company has restored normal operations and confirmed the security of sensitive data, concerns remain regarding the rising trend of ransomware attacks targeting the agricultural sector. This incident serves as a reminder of the vulnerabilities faced by major food producers and underscores the importance of cybersecurity in safeguarding essential services.
Original Source: therecord.media
