Cyberattack Disrupts Operations of South Africa’s Largest Chicken Producer

Astral Foods, South Africa’s largest chicken producer, experienced a cyberattack on March 16 that resulted in over $1 million in losses due to operational delays. The company confirmed there was no compromise of sensitive data and stated that business units are now functioning normally. However, the attack is expected to impact earnings negatively for the current financial period.

South Africa’s leading chicken producer, Astral Foods, recently suffered a cyberattack that resulted in the loss of over $1 million. On March 16, the company activated its disaster recovery protocols after the attack caused significant delays in deliveries and processing operations. Astral Foods encompasses various chicken enterprises and is involved in the production of chickens, eggs, and animal feed.

The cyber incident led to a downtime impacting deliveries, contributing to a backlog and lost revenue. Overall, Astral Foods reported approximately 20 million rand in lost profits, equivalent to about $1 million. The company stated, “At the date of this announcement, all business units are operating normally following the recovery of our systems” and reassured stakeholders that no sensitive data was compromised during the breach.

It was noted that the disruptions caused by the cyberattack would likely lead to substantial decreases in earnings per share for the ongoing six-month financial period. Earlier, in September, Astral Foods announced over $1 billion in annual revenue for the fiscal year 2024. Despite the severity of the attack, the company did not disclose specific details regarding the nature of the intrusion or the perpetrator involved.

The agricultural sector has increasingly become a target for ransomware groups, as many organizations are willing to pay ransoms to prevent disruption in food distribution. According to the Food and Agriculture-Information Sharing and Analysis Center (Food and Ag-ISAC), there were at least 167 ransomware attacks targeting the sector in 2023. Major food producers, such as JBS and Dole, have also been victims of ransomware attacks in recent years, highlighting the vulnerability of this sector.

In summary, South Africa’s largest chicken producer, Astral Foods, faced significant financial losses due to a cyberattack that disrupted operations. Despite the swift recovery of business functions and assurance that no sensitive data was compromised, the company anticipates adverse effects on its earnings. This incident underscores the ongoing threat of cyberattacks in the agricultural sector, where disruptions can have far-reaching implications for food distribution.

Original Source: therecord.media