Astral Foods, South Africa’s largest chicken producer, lost over $1 million due to a cyberattack that caused delivery delays and operational challenges. The company activated its disaster recovery protocols but reported no loss of sensitive customer data. The incident reflects the growing trend of ransomware targeting agricultural organizations and may have significant financial implications.
South Africa’s largest poultry producer, Astral Foods, recently experienced a cyberattack that resulted in losses exceeding $1 million. The incident, occurring on March 16, prompted the company to employ its disaster recovery protocols to address the challenges that arose. Astral Foods, which oversees various businesses related to chicken production, including the manufacturing of animal feed, reported significant financial impacts due to processing and delivery disruptions.
The company experienced operational downtime, resulting in backlogs and lost revenue, with projected losses of around 20 million rand, equivalent to approximately $1 million. Thankfully, Astral Foods confirmed that all its business units are functioning normally post-recovery, ensuring that no customer, supplier, or stakeholder data was compromised during the attack. However, the incident has prompted concerns regarding significant declines in earnings per share for the current financial period.
In September, Astral Foods had reported over $1 billion in annual revenue for 2024, but the ramifications of this attack may affect future earnings. The nature of the cyberattack and its perpetrators remain unclear, as the company did not disclose specific details nor have any ransomware group claimed responsibility yet. This incident reflects a broader trend wherein large agricultural entities are increasingly targeted by ransomware attacks, with many firms willing to pay ransoms to avert food distribution disruptions.
The Food and Agriculture-Information Sharing and Analysis Center (Food and Ag-ISAC) noted that 2023 saw at least 167 ransomware attacks on the agriculture sector. Previously, major corporations such as JBS and Dole have fallen victim to similar attacks, and there are ongoing concerns regarding the safety and cybersecurity of information within the food industry. Reports indicate that at least one farm suffered $9 million in losses due to ransomware in 2021, highlighting the potential consequences for the sector.
Jonathan Greig is a Breaking News Reporter at Recorded Future News, with journalism experience across various countries and expertise in cybersecurity coverage.
In summary, Astral Foods’ cyberattack has caused significant operational and financial disruptions, leading to estimated losses of over $1 million. While recovery efforts have restored normal operations, the incident has raised concerns about the vulnerability of agricultural institutions to cyber threats. The increasing trend of ransomware attacks in the industry necessitates heightened vigilance and proactive security measures to protect sensitive information and maintain food distribution reliability.
Original Source: therecord.media
