Astral Foods, South Africa’s largest chicken producer, experienced a cyberattack on March 16, resulting in over $1 million in losses due to delivery delays. The company activated disaster recovery protocols, confirmed the protection of sensitive data, and reported that normal operations have resumed. Despite this recovery, significant decreases in earnings per share are anticipated, highlighting cybersecurity risks faced by the agricultural sector.
Astral Foods, South Africa’s largest chicken producer, has reported substantial losses exceeding $1 million due to a cyberattack that occurred on March 16. The incident necessitated the activation of the company’s disaster recovery protocols and preparedness plans, disrupting operations and causing delays in delivery. Astral Foods, which encompasses various chicken and egg production businesses, also manufactures animal feed and related products, all significantly impacted by the attack.
The cyberattack resulted in downtime affecting processing and customer deliveries, leading to a reported profit loss of approximately 20 million rand, equivalent to about $1 million. Fortunately, Astral Foods announced that all business units have resumed normal operations following system recovery, and confirmed that no sensitive customer or stakeholder information was compromised during the incident.
Despite the recovery, the company alerted investors that the outages would lead to a notable decrease in earnings per share for the upcoming financial period. In September, Astral Foods announced over $1 billion in annual revenue for 2024, suggesting a hefty financial impact from the cyber disruptions. The nature of the cyberattack remains undisclosed, and no claims of responsibility have surfaced from any ransomware groups as of now.
Agricultural institutions are increasingly becoming targets for cybercriminals, notably ransomware gangs, which exploit the willingness of companies to pay ransoms to maintain food distribution continuity. The Food and Agriculture-Information Sharing and Analysis Center reported at least 167 ransomware incidents in the agriculture sector throughout 2023. High-profile companies, including JBS and Dole, have similarly suffered attacks in recent years, and even the U.S. Department of Agriculture was affected by a ransomware incident that compromised sensitive data.
The recent cyberattack on Astral Foods highlights the vulnerability of the agricultural sector to cyber threats. The company’s swift recovery and assurance of data security were commendable; however, the financial repercussions are significant, with over $1 million lost in revenue. This incident underscores the necessity for improved cybersecurity measures in food production industries, as they remain lucrative targets for cybercriminals. As the landscape of cyber threats evolves, the industry must adapt to safeguard operations effectively.
Original Source: therecord.media
