Meatpacker JBS says it paid equivalent of $11 million in ransomware attack

(Reuters) -Meatpacker JBS USA paid a ransom equivalent to $11 million following a cyberattack that disrupted its North American and Australian operations, the company's CEO said in a statement on Wednesday.  

 Reuters/Bing Guan FILE PHOTO: FILE PHOTO: JBS USA Worthington pork plant in Minnesota

The subsidiary of Brazilian firm JBS SA halted cattle slaughtering at all of its U.S. plants for a day last week in response to the cyberattack, which threatened to disrupt food supply chains and further inflate already high food prices.

The cyberattack followed one last month on Colonial Pipeline, the largest fuel pipeline in the United States. It disrupted fuel delivery for several days in the U.S. Southeast.

Ransom software works by encrypting victims' data. Typically hackers will offer the victim a key in return for cryptocurrency payments that can run into hundreds of thousands or even millions of dollars. The FBI said earlier this month that the agency was investigating about 100 different types of ransomware.

The JBS meat plants, producing nearly a quarter of America's beef, recovered faster than some meat buyers and analysts expected.

Video: U.S. says ransomware attack on meatpacker JBS likely from Russia (Reuters)

"This was a very difficult decision to make for our company and for me personally," said Andre Nogueira, CEO of JBS USA on the ransom payment. "However, we felt this decision had to be made to prevent any potential risk for our customers."

The Brazilian meatpacker's arm in the United States and Pilgrims Pride Corp, a U.S. chicken company mostly owned by JBS, lost less than one day's worth of food production. JBS is the world's largest meat producer.

Third parties are carrying out forensic investigations and no final determinations have been made, JBS said. Preliminary probe results show no company, customer or employee data was compromised in the attack, it said.

A Russia-linked hacking group is behind the cyberattack against JBS, a source familiar with the matter said last week. The Russia-linked cyber gang goes by the name REvil and Sodinokibi, the source said.

The Wall Street journal reported on Wednesday that the JBS ransom payment was made in bitcoin.

The Justice Department on Monday recovered some $2.3 million in cryptocurrency ransom paid by Colonial Pipeline Co, cracking down on hackers who launched the attack.

(Reporting by Aishwarya Nair and Kanishka Singh in Bengaluru; Editing by Grant McCool and Christopher Cushing)

 

After enduring ‘complete hell’ during pandemic, food workers face obstacles getting COVID-19 vaccinations

“Vaccinating our essential farmworkers will ensure the safety of their workplaces, their homes, their families, our food supply, and the vital services that they perform.”

By

 Leah Douglas

 -

February 1, 2021Common Dreams

The thousands of workers who pick, pack, and process our food have become eligible to receive the Covid-19 vaccine in many states. But they still face obstacles to actually getting the vaccine, as companies sort out their vaccination policies and advocates struggle to secure enough doses for a workforce that ranks among the most vulnerable to the coronavirus.

Labor organizations and the food industry spent months pushing for agricultural and food processing workers to be in early distribution phases of the Covid-19 vaccine. In December, the Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices recommended that agricultural workers be vaccinated in Phase 1b, and many states have followed suit.

Yet with the vaccine rollout moving slowly because of continued shortages and with some states shuffling around their priority populations, there are still unanswered questions about how and whether the vaccines will actually get to workers and about what role food manufacturers will play in getting shots into arms.

Florida is now requiring vaccine recipients to show state driver’s licenses or proof of residence, potentially excluding the state’s 200,000 migrant and seasonal farmworkers

Meanwhile, food system workers are still contracting the virus at workplaces across the country. More than 85,500 food and farmworkers have contracted Covid-19 and at least 368 have died as of Jan. 27, according to FERN’s tracker. Nearly 7,000 cases have been added to the database since the beginning of January, even with just a few states regularly reporting data.

Kristy Tijerina, a worker at a JBS meatpacking plant in Plainwell, Michigan, says it’s essential that the vaccine be allocated to the industry’s workers as quickly as possible. At her plant, at least 88 workers have contracted the virus and one has died. Tijerina herself contracted Covid-19 in the spring, and her father died of the virus in August.

“It’s just getting really bad right now,” she says of the case rates in her community. “The more everybody gets vaccinated, it’s a lot better for everybody working here together.”

One obstacle to expediently vaccinating food workers is the still-changing prioritization of essential workers in states’ vaccination phases. Amy Liebman, director of environmental and occupational health at the Migrant Clinicians Network (MCN), which has been supporting local health systems in vaccinating farmworkers, says it’s “been a disappointment” seeing food and farmworkers still unable to access vaccines in many states, given their high risk of contracting Covid-19.

“First and foremost, we need the doses,” Liebman says.

In California, home to as many as 800,000 farmworkers, Gov. Gavin Newsom recently shifted the state’s vaccine distribution structure to be age-based, leading to concerns that many essential workers would need to wait longer for their shots. Florida, another major agricultural producer, is now requiring vaccine recipients to show state driver’s licenses or proof of residence, potentially excluding the state’s 200,000 migrant and seasonal farmworkers from being vaccinated at all.

“Farmworkers are among the most vulnerable populations, because they work in close proximity to each other [and] they go home, often to multigenerational households,” said Fresno County supervisor Brian Pacheco at a vaccination site on Wednesday. Fresno County became one of the first counties in the country to begin vaccinating farmworkers this week and plans to vaccinate more than 3,000 agricultural workers in the coming days at vaccination sites around the county.

“Vaccinating our essential farmworkers will ensure the safety of their workplaces, their homes, their families, our food supply, and the vital services that they perform,” Pacheco said.

One of the logistical questions facing employers and health departments is where, exactly, workers should get inoculated. Particularly for migrant farmworkers, who may relocate between shots, vaccine distribution must happen at easily accessible locations, says Leibman. MCN is aiding in that effort with a virtual case management program that can help workers figure out how to get a second vaccine dose if they move after their first shot.

“We need to make sure that the vaccine is available to workers rather than the workers being available to the vaccine,” she says.

For meatpacking workers, the best option is to get vaccinated at work, says Mark Lauritsen, vice president of meatpacking at the United Food and Commercial Workers union. Many large meatpacking plants have their own health clinics, where workers already receive medical care. Workers may be less nervous getting vaccinated in a familiar setting, he says.

“We’re going to work to make sure that it’s an efficient process and a safe process, and that there’s no barriers to accessing [the vaccine],” he says. “The power of having it right there at the plant means we get to these people with very few obstacles.”

Yet there’s also an essential role for public health departments, especially in cases where workers may not trust their employer or report to work on a regular schedule. Advocates who represent subcontracted workers in food processing recommended recently that local health departments be “heavily involved” in vaccine distribution to ensure that temporary workers are reached.

In some states, meatpacking and other agricultural workers can already receive the vaccine or will qualify imminently. Iowa’s meatpacking workers are expected to be able to set up vaccine appointments by Feb. 1, and in Kansas, they began to qualify for vaccine appointments on Jan. 26.

Meatpackers are still figuring out some of the details of how they will vaccinate workers. Nikki Richardson, director of communications for JBS, says vaccination logistics are still being determined at each plant, and that in some cases, public health departments, pharmacies, or local health clinics will carry out worker vaccinations. But the company is “prepared for our phase of vaccine allocation whenever it may occur,” Richardson says.

Tyson Foods plans to “offer vaccinations on-site at our facilities, at no cost, while our team members are on the job,” said the company’s public relations manager, Derek Burleson. Tyson has contracted with Matrix Medical Network to coordinate its worker testing and vaccination, so the timing of vaccinations will depend on when states make vaccines available to Matrix, Burleson says.

Meatpacker JBS says it will pay workers $100 to get vaccinated. A critic called the incentive program an “attempt to distract from the company’s failure to protect its workers.”

Smithfield did not respond to questions about the specifics of its vaccination program.

Employers are also still sorting out whether to incentivize or compensate workers for getting vaccinated. In the grocery sector, where at least 109 union workers have died of Covid-19 and more than 17,000 have contracted the virus, some retailers are introducing incentives to encourage workers to get the vaccine, though they’re not requiring it. For instance, Instacart will pay $25 to employees who take time off to the get vaccinated. Trader Joe’s will give its workers two hours of pay per vaccine dose.

So far, JBS is the only meatpacker that has said it will pay workers to get the vaccine—$100 for employees of the Brazilian-owned meatpacker and its subsidiary Pilgrim’s Pride. But that approach isn’t uniformly popular.

Kim Cordova, the president of UFCW Local 7, said in a statement that JBS’s incentive program is an “attempt to distract from the company’s failure to protect its workers.” Local 7 represents workers at a JBS plant in Greeley, Colorado, where six workers have died of Covid-19 and nearly 450 have been sickened by the virus. The company should quickly restore hazard pay for its workers and implement daily testing, among other precautions, Cordova said.

Meatpackers are also mixed on whether the vaccine should be mandatory for their workers. JBS is “currently focused on achieving the highest voluntary participation rate possible,” says Richardson. Tyson is “strongly encouraging team members to take the vaccine but are not mandating it,” says Burleson.

Lauritsen says the UFCW is opposed to making the vaccine mandatory and that receiving the vaccine should not be a condition of employment. Besides, he says, workers are ready to get the vaccine without it being made compulsory.

“Given the work that’s been done, the complete hell that these folks have went through during this pandemic,” he says, “our members are ready to get the vaccination, and the sooner the better.”

Leah Douglas  is an associate editor and staff writer at FERN. Prior to joining the team, she worked for three years as a reporter and policy analyst with the Open Markets Institute, where she researched economic consolidation and monopolization in the food and agriculture industry. She founded and wrote Food & Power, a first-of-its kind resource on food sector consolidation.

REvil Ransomware Ground Down JBS: Sources

Author:Lisa Vaas
June 2, 2021 

Responsible nations don’t harbor cybercrooks, the Biden administration admonished Russia, home to the gang that reportedly froze the global food distributor’s systems.

The cyberattack that flattened operations at JBS Foods over the weekend was indeed a ransomware strike, the global food distributor has confirmed, with sources pointing to the REvil Group as the responsible gang.

Four people familiar with the matter who weren’t authorized to speak publicly told Bloomberg that the notorious Russia-linked hacking group is behind the attack against JBS SA. The REvil cyber gang also goes by the name Sodinokibi.

REvil is known for both audacious attacks on the world’s biggest organizations and suitably astronomical ransoms. In April, it put the squeeze on Apple just hours before its splashy new product launch, demanding a whopping $50 million extortion fee: a bold move, even for the notorious ransomware-as-a-service (RaaS) gang. The original attack was launched against Quanta, a Global Fortune 500 manufacturer of electronics, which claims Apple among its customers. The Taiwanese-based company was contracted to assemble Apple products, including Apple Watch, Apple Macbook Air and Pro, and ThinkPad, from an Apple-provided set of design schematics.

The JBS attackers targeted several servers supporting North American and Australian IT systems of JBS Foods on Sunday, according to a statement by JBS USA. JBS is a global provider of beef, chicken and pork with 245,000 employees operating on several continents and serving brands such as Country Pride, Swift, Certified Angus Beef, Clear River Farms and Pilgrim’s.

The “vast majority” of JBS Foods’ beef, pork, poultry and prepared foods plants will be operational by today, the company said on Tuesday.

Andre Nogueira, JBS USA CEO, said in a statement that the company’s systems are coming back online and that it’s “not sparing any resources to fight this threat.” JBS has cybersecurity plans in place for these types of incidents and is successfully executing them, he said. In the case of a ransomware attack, that means relying on backups. Fortunately, JBS’ backup servers weren’t affected, and it’s been working with a third-party incident-response firm to restore operations as soon as possible.

It lucked out in that regard: Security experts have noted that attacks are getting more vicious and more destructive, with attackers taking the extra time and effort to remove backups prior to deploying ransomware.

As of Tuesday, JBS USA and Pilgrim’s were able to ship food from nearly all of its U.S. facilities, Nogueira noted, and were still making progress in resuming plant operations in the U.S. and Australia. “Several of the company’s pork, poultry and prepared foods plants were operational today and its Canada beef facility resumed production,” he said.

To date, JBS hasn’t found evidence that any customer, supplier or employee data was compromised.

White House Chides Russia

According to White House Press Secretary Karine Jean-Pierre, JBS told the administration on Sunday that it believes the ransomware attack was launched from a criminal organization, likely based in Russia.

Speaking to reporters Tuesday aboard Air Force One, Jean-Pierre said that the Biden administration told the Russian government that it’s not nice to harbor cybercrooks. “The White House is engaging directly with the Russian government on this matter and delivering the message that responsible states do not harbor ransomware criminals,” she said, according to a transcript of her remarks.

The White House has offered assistance to JBS: Its team and the Department of Agriculture have spoken to the company’s leadership several times since Sunday’s attack, Jean-Pierre said. As well, the FBI is investigating the incident in coordination with the Cybersecurity and Infrastructure Security Agency (CISA) to offer technical support to the company as it pulls itself back into production.

“Combating ransomware is a priority for the administration,” the press secretary went on. “President Biden has already launched a rapid strategic review to address the increased threat of ransomware to include four lines of effort: one, distribution of ransomware infrastructure and actors working closely with the private sector; two, building an international coalition to hold countries who harbor ransom actors accountable; expanding cryptocurrency analysis to find and pursue criminal transaction; and reviewing the USG’s ransomware policies.”

The government’s reaction to the JBS hit is an echo of the reaction to last month’s attack on a major U.S. oil pipeline, when ransomware group DarkSide targeted operator Colonial Pipeline Co., disrupting fuel supply in the Eastern part of the U.S.

That attack prompted President Joe Biden to declare a state of emergency and caused substantial pain at gas pumps in the Southeast. DarkSide made off with a $5 million ransomware payout from Colonial to decrypt its frozen systems but published a mea culpa over the uproar, emphasizing that it was in it for the cash, not to disrupt people’s lives. Somebody or somebodies weren’t convinced: The ransomware-as-a-server (RaaS) gang’s servers were subsequently shuttered. A week later, DarkSide got hauled into the underground’s “Hacker’s Court” for failing to pay its affiliates.

Biden’s executive order asked for “bold and significant changes” to tight deadlines on complex systems — tethered to a significant shift in technology. It does raise question, however, as noted by David Wolpoff, CTO and co-founder of Randori. Writing for Threatpost’s Infosec Insider, he questioned the EO’s “Heavy emphasis on migrating traditionally on-premises systems to the cloud” and call for rapid change in the name of cybersecurity. “It does not address the issue of the interconnectedness of a cloud migration,” Wolpoff noted. “If we move too fast, while attempting to shift to the cloud, we will create more issues.”

The Meat Industry’s Full of Sitting Ducks

Security ratings provider BitSight has been tracking the ransomware risk to the food production industry and says that the industry is setting itself up, with 40 percent of companies at increased risk due to poor patching practices. On Tuesday, the company told Threatpost in an email that food companies “are taking longer to patch vulnerabilities than the recommended industry standard, leaving them at higher risk.”

In fact, BitSight said, more than 70 percent of food companies are at increased risk of ransomware due to “less-than-ideal” security practices. ” Compared to other sectors, food production is in the 60th percentile of security performance, making it markedly more at-risk to ransomware than other sectors like Credit Unions (52 percent), Insurance (62 percent) and Finance (60 percent), which lead all sectors in security performance excellence,” it said.

But all industries are vulnerable, according to cyber threat intelligence firm Cyber Security Cloud Inc. “The recent cyberattacks on the Colonial Pipeline and now JBS USA show us that all infrastructures are vulnerable,” CEO Toshihiro Koike told Threatpost via email on Tuesday. “If organizations don’t start taking cybersecurity seriously, these attacks will continue to happen. Preventing a cyberattack is like preventing a home invasion: You must continuously update your security and educate the persons behind the walls.”

Threatpost has asked JBS Foods to comment on the attribution of the attack to REvil/Sodinokibi.    REvil Ransomware Ground Down JBS: Sources | Threatpost

Russia-linked cybercriminal group REvil behind meatpacker JBS attack

PUBLISHED WED, JUN 2 2021
CNBC
MacKenzie Sigalos@KENZIESIGALOS

KEY POINTS

Well-known hacker collective REvil Group is behind the cyberattack on Brazil’s JBS, according to a source speaking to CNBC on the condition of anonymity.

The assault on the world’s largest meatpacker disrupted meat production in North America and Australia.

In this article
JBSS-BR-0.55 (-1.78%)

VIDEO02:41
JBS to have most of meat plants online soon after suspected Russia cyberattack

Well-known hacker collective REvil Group is behind the cyberattack on JBS, according to a source speaking to CNBC on the condition of anonymity. It caused JBS, the world’s largest meatpacking company to shut down operations.

The assault on the world’s largest meatpacker disrupted meat production in North America and Australia, at one point stoking concerns over the potential for rising prices and inadequate supply during the busy summer grilling season.

REvil — pronounced like the letter “R” followed by the word “evil” — is mostly comprised of native Russian speakers. It is also believed to be based in a former Soviet state.

The organization runs a site on the dark web, anachronistically known as the “Happy Blog.” If victims don’t comply with demands, the group posts stolen documents on its blog.

“We know that they are protected most likely by Russian intelligence or the Russian government, as are most ransomware groups, which has allowed them to flourish over the last 18 months,” Marc Bleicher of Arete Incident Response, a cybersecurity firm that specializes in negotiations with criminal hackers, previously told CNBC.

Packages of beef cuts are displayed at a Costco store on May 24, 2021 in Novato, California.
Justin Sullivan | Getty Images

By Tuesday night, the company said that it had made “significant progress in resolving the cyberattack” and that the “vast majority” of the company’s beef, pork, poultry and prepared food plants will be operational Wednesday.

White House spokeswoman Karine Jean-Pierre said the Biden administration is engaging directly with the Russian government on this matter, “delivering the message that responsible states do not harbor ransomware criminals.”

-- CNBC’s Eamon Javers contributed to this report.

JBS resumes chicken slaughtering at Brazil plant after COVID-19 outbreak: statement  

FILE PHOTO: The logo of Brazilian meatpacker JBS SA is seen in the city of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker
SAO PAULO (Reuters) - Brazilian meatpacker JBS SA (JBSS3.SA) said on Thursday that operations at its plant in Passo Fundo, in the southern state of Rio Grande do Sul, were allowed to resume after the facility was closed by authorities due to an outbreak of the novel coronavirus.

Slaughtering resumed on Wednesday at the plant that has the capacity to process 320,000 birds per day, the company said in a statement sent to Reuters. It had been closed since April 24.

The company said it has “promoted a rigorous screening process to certify that only employees in good health returned to work.”

The company’s protocol does not involve testing of employees for the COVID-19 respiratory illness, a spokeswoman said.

At that facility alone, JBS employs more than 2,600 people, in addition to 600 integrated producers, the statement said. The Passo Fundo unit has operated for more than 35 years in the region, JBS said.

Brazilian union sues JBS over alleged exploitation of chicken workers

Story by By Ana Mano • Yesterday 

 The logo of Brazilian meatpacker JBS SA is seen in the unit in the city of Jundiai

SAO PAULO (Reuters) - A Brazilian labor union has accused JBS SA of submitting dozens of workers to "degrading conditions," according to a class action suit filed against the world's biggest meatpacker and its suppliers this week.

The union filed the claim on behalf of at least 76 people, including members of the Terena Indigenous community, who were employed as third-party chicken catchers for JBS and worked in conditions "analogous to slavery," the suit alleges.

Their shifts lasted up to 14 hours including the journey to and from the hen houses, said union leader Sergio Bolzan in a telephone interview. The work consisted of packing live chickens in boxes for transportation, some of which weighed as much as 24 kilograms (53 pounds), he added.

JBS is a primary defendant and four outsourcing companies are co-defendants in the suit, documents show.

In a statement, the company said it had not yet been notified of the suit and would investigate the allegations.

The suit claims workers did not get enough rest time, were not fully paid upon dismissal and did not get extra pay for performing hazardous work.

JBS says it maintains "strict protocols and controls in its operations to ensure that all its suppliers comply with their legal obligations and the well-being of employees."

These obligations include providing adequate protective gear, safe working conditions and reliable means of transportation.

It also says it regularly conducts technical visits to supervise the work of catchers and to verify that everything is in order with suppliers.

Bolzan said evidence of alleged exploitation surfaced in April when he paid a surprise visit to where some catchers were being housed to document the conditions.

The union submitted that evidence on Tuesday to a court in Sidrolandia, in the state of Mato Grosso do Sul, where Bolzan said JBS employs 5,000 people directly and indirectly.

The union is seeking 400,000 reais ($82,000) in damages per worker and is pushing for prosecutors to formally join the suit as plaintiffs, documents show.

Bolzan shared his concerns with labor prosecutors, who confirmed preliminary investigations into the matter, including whether catchers were employed "off the books."

($1 = 4.8831 reais)

(Reporting by Ana Mano; Editing by Brad Haynes and Mark Potter)

Meatpackers deny workers benefits for COVID-19 deaths, illnesses

© Reuters/Jim Urquhart FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Greeley, Colorado

By Tom Hals and Tom Polansek

(Reuters) - Saul Sanchez died in April, one of six workers with fatal COVID-19 infections at meatpacker JBS USA's slaughterhouse in Greeley, Colorado, the site of one of the earliest and deadliest coronavirus outbreaks at a U.S. meatpacking plant.

Before getting sick, the 78-year-old Sanchez only left home to work on the fabrication line, where cattle carcasses are sliced into cuts of beef, and to go to his church, with its five-person congregation, said his daughter, Betty Rangel. She said no one else got infected in the family or at Bible Missionary Church, which could not be reached for comment.

JBS, the world's largest meatpacker, denied the family's application for workers' compensation benefits, along with those filed by the families of two other Greeley workers who died of COVID-19, said lawyers handling the three claims. Families of the three other Greeley workers who died also sought compensation, a union representative said, but Reuters could not determine the status of their claims.

JBS has said the employees' COVID-19 infections were not work-related in denying the claims, according to responses the company gave to employees, which were reviewed by Reuters.

As more Americans return to workplaces, the experience of JBS employees shows the difficulty of linking infections to employment and getting compensation for medical care and lost wages.

"That is the ultimate question: How can you prove it?" said Nick Fogel, an attorney specializing in workers' compensation at the firm Burg Simpson in Colorado.The meatpacking industry has suffered severe coronavirus outbreaks, in part because production-line workers often work side-by-side for long shifts. Companies including JBS, Tyson Foods Inc and WH Group Ltd's <0288.HK> Smithfield Foods closed about 20 plants this spring after outbreaks, prompting President Donald Trump in April to order the plants to stay open to ensure the nation's meat supply. The White House declined to comment on the industry's rejections of workers' claims. The U.S. Department of Labor did not respond to a request for comment.

Tyson has also denied workers' compensation claims stemming from a big outbreak in Iowa, workers' attorneys told Reuters. Smithfield workers at a plant in Sioux Falls, South Dakota, also hit by a major outbreak, have generally not filed claims, a union official said, in part because the company has paid infected workers' wages and medical bills.

Smithfield declined to comment on workers’ compensation. Tyson said it reviews claims on a case-by-case basis, but declined to disclose how often it rejects them. JBS acknowledged rejecting claims but declined to say how often. It called the denials consistent with the law, without elaborating.

Workers can challenge companies' denials in an administrative process that varies by state but typically resembles a court hearing. The burden of proof, however, usually falls on the worker to prove a claim was wrongfully denied.

The full picture of how the meatpacking industry has handled COVID-related workers' compensation remains murky because of a lack of national claims data. Reuters requested data from seven states where JBS or its affiliates have plants that had coronavirus outbreaks. Only three states provided data in any detail; all show a pattern of rejections.

In Minnesota, where JBS had a major outbreak, meatpacking employees filed 930 workers' compensation claims involving COVID-19 as of Sept. 11, according to the Minnesota Department of Labor and Industry. None were accepted, 717 were rejected and 213 were under review. The agency did not identify the employers.The Minnesota Department of Health said only two meatpacking plants there had significant coronavirus outbreaks: a JBS pork processing plant in Worthington, and a poultry plant in Cold Spring run by Pilgrim's Pride Corp , which is majority-owned by JBS.

Tom Atkinson, a Minnesota workers' compensation attorney who has represented meatpacking workers, estimates up to 100 COVID-19 claims were filed by employees at the Worthington plant.

In Utah, seven JBS workers filed claims related to COVID-19 by Aug. 1 and all were denied, according to the state's Labor Commission. At least 385 workers at a JBS beef plant in Hyrum, Utah, tested positive for COVID-19.

In Colorado, 69% of the 2,294 worker compensation claims for COVID-19 had been denied as of Sept. 12. Although the state does not break down the denials by industry, a JBS spokesman told Reuters the company is rejecting claims in Colorado and that it uses the same claim-review procedures nationwide.

JBS spokesman Cameron Bruett did not answer the question of whether JBS employees were infected on the job and declined comment on individual workers’ claims. He said the company has outsourced claim reviews to a third-party administrator.

"Given the widespread nature of viral spread, our third-party claims administrator reviews each case thoroughly and independently," said Bruett.

The administrator, Sedgwick, did not respond to a request for comment. Bruett, also a spokesman for Pilgrim's Pride, did not respond to questions about infections and claims at its Minnesota plant.

At the JBS plant in Greeley, where Sanchez worked before he died, at least 291 of about 6,000 workers were infected, according to state data. The company, in its written response to the family’s claim, said that his infection was “not work-related,” without spelling out its reasoning. The two sides are now litigating the matter in Colorado's workers' compensation system.

Under Colorado law, a workers' compensation death benefit provides about two-thirds of the deceased worker's salary to the surviving spouse and pays medical expenses not covered by insurance. If JBS had not denied the Sanchez family’s claim, that would have provided his widow a steady income and paid uncovered medical bills totaling about $10,000, according to his daughter.

"They don't care," Rangel said of JBS. "They are all about the big profits, and they are not going to give any money out."

MASS INFECTIONS, LITTLE COMPENSATION

The United Food and Commercial Workers (UFCW) International Union, which represents 250,000 U.S. meatpacking and food-processing workers, said last week at least 122 meatpacking workers have died of COVID-19 and more than 18,000 had missed work because they were infected or potentially exposed.

The U.S. Occupational Safety and Health Administration (OSHA) said on Sept. 11 that it had cited JBS for failing to protect workers at the Greeley plant from the virus. OSHA cited Smithfield this month for failing to protect workers at its Sioux Falls, South Dakota, plant, where the agency said nearly 1,300 workers contracted the coronavirus and four died.

Smithfield and JBS said the citations had no merit because they concerned conditions in plants before OSHA issued COVID-19 guidance for the industry. OSHA said it stands by the citations.

Workers' compensation is generally the only way to recoup medical expenses and lost wages for work-related injuries and deaths. The system protects employers from lawsuits, with few exceptions, and allows workers to collect benefits without having to prove fault or negligence. But the system was designed for factory accidents, not airborne illnesses.

In response to the coronavirus, governors and lawmakers in at least 14 states have made it easier for some employees to collect workers compensation for COVID-19 by putting the burden on companies and insurers to prove an infection did not occur at work. But most of the changes, which vary by state, only apply to workers in healthcare or emergency services. A similar proposal failed to gain support in Colorado.

Mark Dopp, general counsel for the North American Meat Institute, a trade association that represents meatpackers, said it is difficult to determine where workers get infections given extensive sanitation efforts taken by meat plants and workers' daily travel to and from the plants.

Tyson in April closed its Waterloo, Iowa, pork processing plant due to a COVID-19 outbreak. Ben Roth, a local workers’ compensation attorney, said five families of employees who died filed workers compensation claims for death benefits, and all were denied.

He said meat-processing companies have an incentive to deny every claim because admitting they caused even one infection can expose the firms to liability for all workers contracting COVID-19.

"That undercuts the argument that they want to make across the board: that you can’t prove you got it here and not at a grocery store," Roth said.

Tyson said it follows state laws for workers’ compensation. The company noted that Iowa law states that disease with an equal likelihood of being contracted outside the workplace are "not compensable as an occupational disease.”

In Colorado, Sylvia Martinez runs a group called Latinos Unidos of Greeley and said she knows of more than 20 JBS workers who applied for workers compensation and were denied. Many plant workers are not native English speakers and sought out her group for guidance, she said, adding that many don't understand their rights and fear being fired. The company's rejections have discouraged more claims, Martinez said.

"If you deny five or 10, those workers will tell their co-workers," she said.

'WHO IS GOING TO HIRE HIM?'

JBS also contested the claim of Alfredo Hernandez, 55, a custodian who worked at the Greeley plant for 31 years. He became infected and was hospitalized in March. He still relies on supplemental oxygen and hasn't returned to work, said his wife, Rosario Hernandez.

Generall y, companies approve claims if it looks probable that an employee was injured or sickened at work, said Erika Alverson, the attorney representing Hernandez. But JBS, she said, is arguing workers could have contracted COVID-19 anywhere.

"They're getting into, where did our clients go, what were they doing during that time, who was coming into their house, what did their spouse do, was there any other form of exposure?" said Alverson, of the Denver firm Alverson and O’Brien.

A judge will decide the Hernandez case in an administrative hearing. In the meantime, the Hernandez family has only his disability benefits – a portion of his salary – to cover his medical and insurance costs, Rosario Hernandez said.

"We're getting bunches of bills," she said.

(Reporting by Tom Hals in Wilmington, Delaware, and Tom Polansek in Chicago; Editing by Noeleen Walder, Caroline Stauffer and Brian Thevenot)

Tyson Foods sets net-zero emissions goal, but falls short on farming project
By Tom Polansek 

© Reuters/Mike Blake FILE PHOTO: Tyson food meat products are shown in this photo illustration in Encinitas

CHICAGO (Reuters) - Tyson Foods set a goal on Wednesday to reach net-zero greenhouse gas emissions globally by 2050, after missing a deadline to improve U.S. farming practices as part of an earlier effort to cut emissions.


The new target by the biggest U.S. meatpacker by sales expands a previous goal of reducing emissions by 30% by 2030.

To achieve net-zero emissions, Tyson said it will plan for U.S. operations to use 50% renewable energy by 2030 and extend a program to verify sustainable production practices for cattle, among other steps.

"We believe progress requires accountability and transparency," said John Tyson, chief sustainability officer.

Three years ago, Tyson Foods pledged to improve environmental practices on two million acres (809,370 hectares)of U.S. farmland by 2020. So far, though, it has enrolled just 408,000 acres, according to the company.

Tyson said it now plans to meet its two-million-acre target by 2025.

The company does not own grain farms but has influence over farming as the U.S. meat industry's largest buyer of feed corn. Two million acres is enough land to grow corn to feed all Tyson chickens for a year.

The 408,000 acres represent land enrolled in a 2019 pilot program by Farmers Business Network, which sells agricultural supplies online, according to Tyson.

A pilot program run by another company, MyFarms, enrolled 11,000 acres in 2019, Tyson said. However, Tyson removed these acres last year due to a lack of data and discontinued MyFarms' pilot in 2021, according to the meatpacker.

For Tyson Foods, it was a big learning experience to determine how to obtain "high-quality information about what's going on at the farm in a way that is as frictionless as possible for all parties," John Tyson said.

Interruptions related to the COVID-19 pandemic also hindered land stewardship work last year, Tyson said in a sustainability report.

Meatpackers including Tyson came under fire in 2020 as COVID-19 infections tore through slaughterhouses.

(Reporting by Tom Polansek; editing by Richard Pullin)

JBS Foods cited after worker dies in Colorado chemical vat

 In this Oct. 12, 2020 file photo, a worker heads into the JBS meatpacking plant in Greeley, Colo. Meatpacker JBS Foods Inc. faces about $59,000 in fines after a worker fell into vat of chemicals used to process animal hides and died at one of the company's meat processing facilities in northern Colorado, officials said. (AP Photo/David Zalubowski, File)


GREELEY, Colo. (AP) — Meatpacker JBS Foods Inc. faces about $59,000 in fines after a worker fell into vat of chemicals used to process animal hides and died at one of the company’s meat processing facilities in northern Colorado, officials said.

The employee at the plant in Greeley fell into the vat March 27 while trying to install a paddlewheel used to churn the chemicals, according to the Occupational Safety and Health Administration. Investigators determined that JBS failed to adequately secure a trolley and hoist that were being used to lift the paddlewheel.

JBS and its Swift Beef Co. operations were cited for eight safety violations related to the accident, The Greeley Tribune reported on Wednesday.

“The employees at this facility deserve better than to fear for their lives and their safety when they come to work,” OSHA Area Director Amanda Kupper in Denver said in a news release.

JBS said in a statement that employee “health and safety is at the core of all our decisions,” and that the company is committed to providing a safe environment at its facilities.

The company has 15 business days from receipt of the citations, sent Monday, to comply with or contest them, or to ask to meet with Kupper.

OSHA fined JBS $15,615 in September 2020 for failing to protect its employees in Greeley from COVID-19. Six workers there died and nearly 300 were infected.

Laid-off: Former Tyson Foods chicken farmers face high costs switching to eggs

By Tom Polansek

April 30, 2024

REUTERS

 A worker sorts cage-free chicken eggs at Hilliker's Ranch Fresh Eggs in Lakeside, California, U.S., April 19, 2022. Picture taken April 19, 2022. 

REUTERS/Mike Blake/File Photo

CHICAGO, April 30 (Reuters) - Some U.S. farmers who once raised chickens for Tyson Foods to slaughter are shifting to sell eggs instead after the meatpacker closed six plants, a move that left local suppliers with limited options for work.

In one example, former Tyson suppliers in central Virginia formed a cooperative that will produce cage-free eggs for Indiana-based Dutch Country Organics on a dozen farms, after Tyson closed its nearby Glen Allen plant last year.

In Dexter, Missouri, the world's biggest egg company, Cal-Maine Foods (CALM.O), opens new tab, in March finalized a deal to buy another chicken meat plant Tyson shuttered. Cal-Maine recruited local farmers to produce eggs.

The switch to eggs, which carries high costs, reflects the tough choices former Tyson suppliers around the country must make following the company's 2023 decision to shut plants in an effort to return to profitability in its chicken business after misjudging consumer demand.

Egg farming also comes with risk as lethal bird flu infections have hit laying hens harder than broiler chickens raised for meat. The virus flared up for a third year this spring, resulting in the culling of nearly 10 million hens involved in commercial egg production so far this year. Cal-Maine culled about 1.9 million, opens new tab birds this month after an outbreak in Texas.

MILLIONS TO UPGRADE
Former broiler growers must spend millions of dollars on barn and equipment upgrades to produce eggs, a notoriously volatile market, 18 poultry producers, government officials and industry experts told Reuters. Last year, egg prices tanked after reaching record highs due to the worst-ever outbreak of bird flu in poultry.

"It's a very expensive investment from the grower," said John Bapties, who is president of the Central Virginia Poultry Cooperative and raised chickens for Tyson for 20 years before the Glen Allen plant closed.

His cooperative is placing hens in barns that formerly housed broiler chickens, and expects to sell cage-free eggs produced by about one million birds to Dutch County Organics within a year, he said.

Farmers needed to replace dirt floors in barns with concrete and install nesting systems for hens, among other costly renovations.

Taylor Lee, a former Tyson grower in DeWitt, Virginia, said he decided against the switch. He will focus on raising crops while keeping his poultry barns empty for now.
"They're painting a pretty picture with that co-op but it's $2.8 million roughly to upgrade my farm to egg production," Lee said.

Roger Reynolds, another Virginia farmer who supplied broiler chickens to Tyson, said he is considering producing eggs for Braswell Family Farms. His daughter found work there after Tyson's plant closure eliminated her job.

Producing eggs means a different way of life, Reynolds said. For one thing, hens lay most of their eggs in the morning, meaning farmers cannot go to church on a Sunday without checking their barns first, he said.

CAGE-FREE EGGS

The United States has about 125 million cage-free laying hens, about 40% of total layers, U.S. government data show. More are needed after some states banned sales of eggs from caged hens and restaurants committed to cage-free supplies, Dutch Country Organics CEO Lamar Bontrager said.

"I've been getting calls like crazy," Bontrager said. "Those guys are all concerned of where to procure their eggs."

Dutch Country sells eggs to retailers including Walmart (WMT.N), opens new tab, Kroger (KR.N), opens new tab and Target (TGT.N), opens new tab, according to Virginia officials.
Former broiler growers offer egg companies an opportunity to expand production because the farmers are already familiar with poultry.

"It's one of the ways that these companies are converting: by grabbing old barns," said Brian Moscogiuri, global trade strategist for Eggs Unlimited.

Tyson declined to comment. The company said last year that 55 broiler growers supplied the Glen Allen plant and that it offered them buyout packages. The plant had about 700 employees.

Tyson has laid off corporate employees and said it will close an Iowa pork plant, in addition to shutting chicken plants. Farmers depended on the plants as markets for their livestock.

The meatpacker is slated to report quarterly results on Monday.

In Arkansas, the third biggest broiler-producing state, Tyson closed two chicken plants. Some of its former growers found work supplying other chicken companies, said Jared Garrett, Arkansas Farm Bureau's director of commodity activities and economics.
"They lucked out," he said.

JOBS WANTED

Tyson closed chicken plants in Dexter and Noel, Missouri, with about 700 workers and 1,500 workers, respectively. Cal-Maine said it plans to initially employ about 100 people at the Dexter plant.

"While I welcome Cal-Maine's investment in Dexter, it does not right the wrongs of Tyson or guarantee new jobs for the more than 2,000 Missourians now out of one," U.S. Senator Josh Hawley of Missouri said in a statement to Reuters.

David Wyman, Dexter's city administrator, also welcomed Cal-Maine, though it is expected to work with a fraction of the farmers who supplied Tyson. Cal-Maine said it expects to expand over time and that revenue opportunities will be as good or better than farmers had under previous contracts.

But some former Tyson suppliers are left with empty barns, Wyman said: "They're really in bad shape."

Egg farming is generally harder to get into operationally than raising chickens for meat; requires more capital and labor expertise; and carries higher disease risks, said Wendong Zhang, an assistant professor and agricultural economist at Cornell University.
"Due to the closure of the plants and termination of contracts, the switch is in a way a move of necessity," he said.

Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here.


Reporting by Tom Polansek; Editing by Caroline Stauffer and Anna Driver

Biden Launches Plan to Fight Meatpacker Giants on Inflation

Mike Dorning
Mon, January 3, 2022

Biden Launches Plan to Fight Meatpacker Giants on Inflation

(Bloomberg) -- President Joe Biden promised to “fight for fairer prices” for farmers and consumers Monday as he announced plans to combat the market power of the giant conglomerates that dominate meat and poultry processing.

“Capitalism without competition isn’t capitalism, it’s exploitation,” 

Biden said. “That’s what we’re seeing in meat and poultry.”

Biden joined Agriculture Secretary Tom Vilsack and Attorney General Merrick Garland to meet virtually with ranchers and farmers to hear complaints about consolidation in the industry, ratcheting up a White House campaign blaming anti-competitive practices in the industry for contributing to surging food inflation.

Biden launched a portal that will allow producers to report unfair trade practices by meatpackers. He also highlighted initiatives the administration is taking to counter meatpackers’ economic power, including $1 billion in federal aid to assist expansion of independent processors and new competition regulations under consideration.

The announcement focuses fresh attention on Biden’s fight with the meat-processing industry and helps cast him as a president willing to take on powerful business interests over consumer prices. Many Democrats are concerned that months of negotiations over Biden’s economic plan have distanced him too much from the most pressing kitchen-table problems facing Americans.

Inflation has swiftly moved to the top of public concerns as the annual rise in consumer prices hit its highest level in almost 40 years. Meat prices, which in November were up 16% from a year earlier, have been the biggest contributor to grocery inflation. Meatpacking industry representatives blame soaring prices on labor shortages, rising fuel prices and supply-chain constraints.

Shares for meat companies were mixed. Tyson Foods Inc., the biggest U.S. meat company by sales, climbed 0.7%, reversing earlier losses. JBS SA, the world’s biggest meat supplier, fell 4%.

Scott Blubaugh, president of the Oklahoma Farmers Union, praised the initiative. “Not since Teddy Roosevelt have we had a president that’s willing to take on this big issue,” he said.

But others were skeptical it would do enough. “The Administration has not announced that it will take decisive enforcement action to protect America’s cattle producers from the harms they’ve been experiencing for the past seven years, and we remain disappointed with that omission,” Bill Bullard, chief executive officer of R-CALF USA, a group that represents independent cattle producers.

Biden didn’t answer a question on whether he would seek to break up large meat-processing companies. His efforts to inject more competition in the industry run counter to decades of consolidation since the late 1970s as the industry shifted to larger plants to cut costs and courts adopted a more permissive interpretation of antitrust law.

Companies including JBS have said that a shortage of workers is affecting operations in every developed nation, limiting production increases and raising costs.

“Labor remains the biggest challenge,” Sarah Little, a spokeswoman for the North American Meat Institute, a trade group, said in a statement. “Our members of all sizes cannot operate at capacity because they struggle to employ a long-term stable workforce. New capacity and expanded capacity created by the government will have the same problem.”

Mike Brown, president of the National Chicken Council, a poultry trade group, said levels of concentration in the sector haven’t changed much over the past 20 years.

“It’s time for the White House to stop playing chicken with our food system and stop using the meat industry as a scapegoat for the significant challenges facing our economy,” Brown said in an emailed statement.

Biden singled out the meat and poultry processing industries for scrutiny in a July executive order on promoting competition across the economy. His top economic adviser later criticized meatpackers for “pandemic profiteering.” The U.S. Agriculture Department also announced plans in June to consider three new sets of regulations on unfair trade practices in livestock and poultry markets, with officials anticipating the proposal of new rules early this year.

The president has placed critics of corporate consolidation in key positions across his administration, including Lina Khan as chair of the Federal Trade Commission and Jonathan Kanter as assistant attorney general for antitrust.

Four large meatpacking companies control 85% of U.S. beef processing capacity, according to data released by the White House. Other meat sectors are also highly concentrated, with four companies controlling 70% of the pork market and 54% of the poultry market, according to the White House.

A fact sheet the White House distributed to reporters asserts that as a result of that concentration, most livestock producers “now have little or no choice of buyer for their product and little leverage to negotiate.” Tyson Foods Inc. reported record profits on its beef processing in quarterly earnings released in November.

In November, ranchers received 36.7 cents for every dollar consumers spent on beef at the grocery store, down from 51.5 cents in 2015, according to the Agriculture Department. Fifty years ago, their share was more than 60 cents, according to the White House.

“This is a decades-long trend that we are seeing,” said Bharat Ramamurti, Deputy Director of the National Economic Council, in an interview with Bloomberg Television. “The result, based on the economic literature, is higher prices for folks, fewer options for workers, which means that there’s downward pressure on wages. It also means that there’s less innovation and productivity.”

The aid for independent meat and poultry processors, which will come from Covid relief funds, includes $375 million for gap financing grants and $100 million for guarantees of loans made through private banks, according to the fact sheet.

Ted Schroeder, a Kansas State University agricultural economics professor who specializes in livestock markets, said it’s difficult to forecast the overall impact of Biden’s efforts, but expressed doubt the federal aid for independent processors will alter the market much.

Meatpacking is a cyclical business and processors may soon be squeezed again as droughts and higher feed grain prices drive up cattle prices, he said.

“How can smaller, higher cost, highly leveraged new plants hope to survive through such a market environment in the next few years? I am concerned many will not,” Schroeder said.

Biden to meet with farmers as he seeks to cut meat prices

President Joe Biden waves as he leaves St. Ann Roman Catholic Church after attending Mass in Wilmington, Del., Saturday, Jan. 1, 2022. (AP Photo/Carolyn Kaster)

By JOSH BOAK

AP

President Joe Biden will meet virtually with independent farmers and ranchers to discuss initiatives to reduce food prices by increasing competition within the meat industry, part of a broader effort to show the administration is trying to combat inflation.

The White House event occurs Monday afternoon as higher-than-expected inflation has thwarted Biden’s agenda. Consumer prices in November rose 6.8% over the prior 12 months — a 39-year high. Inflation has hurt Biden’s public approval, become fodder for Republican attacks and prompted Sen. Joe Manchin, D-W.Va., to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs.

Biden is building off a July executive order that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.

The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a fact sheet saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms

Biden plans to stress the plans to distribute $1 billion from the coronavirus relief package to help independent meat processors expand. He also plans to highlight funding to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”

The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market.

The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated waves of coronavirus outbreak have dampened people’s opinions about the economy despite strong growth over the past year.

Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.

Biden Unveils Plan to Boost Competition in US Meat Industry
January 03, 2022
Reuters

U.S. President Joe Biden, U.S. Secretary of Agriculture Tom Vilsack and U.S. Attorney General Merrick Garland attend a video conference with farmers, ranchers and meat processors to discuss meat and poultry supply chain issues, on the White House campus, Jan. 3, 2022.

The United States will issue new rules and $1 billion in funding this year to support independent meat processors and ranchers as part of a plan to address a lack of "meaningful competition" in the meat sector, President Joe Biden said on Monday.

The initiative comes amid rising concerns that a handful of big beef, pork and poultry companies have too much control over the American meat market, allowing them to dictate wholesale and retail pricing to profit at the expense of their suppliers and customers.

"Capitalism without competition isn't capitalism. It's exploitation," Biden said. "That's what we're seeing in meat and poultry industries now."

A recent White House analysis found that the top four meatpacker companies – Cargill, Tyson Foods Inc., JBS SA and National Beef Packing Co. – control between 55% and 85% of the market in the hog, cattle and chicken sectors.

U.S. Secretary of Agriculture Tom Vilsack speaks during a video conference on the White House campus in Washington, Jan. 3, 2022.

The Department of Agriculture (USDA) will spend the $1 billion from the American Rescue Plan to expand the independent meat processing sector, including funds for financing grants, guaranteed loans and worker training, said Agriculture Secretary Tom Vilsack, who was speaking at an event with Biden.

USDA will also propose rules this year to strengthen enforcement of the Packers and Stockyards Act and to clarify the meaning of "Product of USA" meat labels, which domestic ranchers have said unfairly advantage multinational companies that raise cattle abroad and only slaughter in the United States.

Attorney General Merrick Garland speaks during a virtual meeting on the White House Campus in Washington, Jan. 3, 2022.

Attorney General Merrick Garland, also speaking at the event, said "too many industries have become too consolidated over time," and that the antitrust division of the Department of Justice has been chronically underfunded.

The Biden administration issued an executive order last year that advocated a whole of government approach to antitrust issues.

A central concern in agriculture has been meat prices, which have risen at a time when the White House is fighting inflation. An analysis in December by the White House economic council found a 120% jump in the gross profits of four top meatpackers since the pandemic began.

Reaction to plan

The meat industry has said the White House analysis was inaccurate and criticized the new plan.

National Chicken Council President Mike Brown called the plan "a solution in search of a problem."

North American Meat Institute spokesperson Sarah Little said staffing plants remains the biggest issue for meatpackers and that the White House plan would not address it.

"Our members of all sizes cannot operate at capacity because they struggle to employ a long-term stable workforce," she said. "New capacity and expanded capacity created by the government will have the same problem."

Eric Deeble, policy director at the National Sustainable Agriculture Coalition, cheered the plan, calling it a "very positive step to ensure farmers and ranchers receive fair prices."

The anticipated rulemaking under the Packers and Stockyards Act "could have a significant impact," said Peter Carstensen, emeritus professor of law at University of Wisconsin-Madison and former antitrust attorney at the Department of Justice. But he noted that investment in independent processing itself would not address market concentration.

Austin Frerick, deputy director of the Thurman Arnold Project at Yale University, an antitrust research center, said the plan does not go far enough to tackle the power of the top meatpackers.

"I do not believe this (plan) will meaningfully change the concentration numbers," he said.

PROFITEERING = INFLATION

Steak Prices Will Keep Rising, Major U.S. Meatpacker Says

Tatiana Freitas
Wed, May 4, 2022,


(Bloomberg) -- Beef will be getting even more expensive at U.S.

 grocery stores in the months ahead, according to one of the country’s biggest meatpackers.

National Beef Co., controlled by the Brazilian giant Marfrig Global Foods, sees relatively stable margins in the next two quarters, according to Tim Klein, who heads Marfrig’s U.S. operations. That means even though their costs to buy cattle are increasing, the company will ultimately be able to pass that on to consumers in the form of pricier steaks and burgers.

“Cattle prices will go up, and beef prices will go up with them,” Klein said during an earnings interview.

The cost of meat has been a focus as consumers grapple with the fastest inflation in four decades. The average price for ground beef in America grocery stores has jumped 18% from a year ago, according to the government data. American shoppers may adapt to inflation by switching to less expensive cuts, according to Klein.

Marfrig beat analysts’ estimates for earnings before items and revenue, posting a record for a first quarter. U.S. operations drove the gains, while South America’s unit started a recovery amid booming Chinese demand and improving cattle supply in Brazil, according to Miguel Gularte, who heads operations in the region. Marfrig’s slaughterings in Brazil rose 20% in the quarter, the double compared with the industry average, Gularte said.

Net income fell 61% from a year ago due to a non-cash loss on the mark-to-market of its stake in the food giant BRF SA. Starting next quarter, Marfrig will add BRF earnings to its balance sheet, according to Chief Financial Officer Tang David. Last month, Marfrig’s founder, Marcos Molina dos Santos, was elected BRF chairman.

REST IN POWER

Mike Davis’s Many Contributions to Building a Better World Will Live On

No leftist writer can compare to Mike Davis — not in clarity, breadth, generosity, or ironclad commitment to the working class. Davis has died, but his ideas will continue to find life in generations of leftist activists and thinkers to come.

Madison Square Garden's interior filled with thousands of striking garment workers in 1958. A banner reads "On with the strike — on to victory!" Mike Davis remained resolute in his belief in labor's collective power. (Bettmann Archive / Getty Images)

BY  BARRY EIDLIN
10.29.2022

 Jacobin 

Our mentors are dying.

At one level, this is a banal statement — an inevitable consequence of the forward march of time. But for those of us on the Left, there are historical and political factors that give it additional weight.

One consequence of the past several decades of defeat and demoralization for the Left has been a lack of generational replacement of leftist leadership and mentorship. Not only have there been fewer people available to serve as potential new leaders and mentors, but those of us who came of age politically between the 1980s and 2000s have had fewer and smaller movements upon which we could cut our teeth and develop as leaders and mentors ourselves.

As a result, it has fallen to veterans of the movements of the 1960s and ’70s to carry much of the weight of keeping the Left alive through difficult decades. That means that, as these veterans inevitably pass from the stage, the loss is that much more painful, their absence that much more deeply felt.

While we can appreciate this sociological observation about generational replacement at an intellectual level, it doesn’t change the fact that each individual death still feels like a gut punch. Knowing the history and sociology does little to soften the blow.

That is certainly the case when speaking of a figure of the caliber of Mike Davis, who died on October 25 at age seventy-six. We all knew this moment was coming after learning that he shifted to palliative care for his cancer a few months ago. But that didn’t prepare us for living in a world deprived of his prolific and penetrating insights.

Reading the tributes and remembrances that have flowed in over the past few days, it is hard not to be awed by the scale and scope of his reach. There is of course his immense body of writing, in which he managed to speak with authority, clarity, and insight on a dizzyingly vast array of matters without slipping into dilettantism.

From droughts and pandemics to urban development and resistance to labor history and politics, socialist strategy, and so much more, few others combined his careful research, clear-eyed analysis, political commitment, and eerie clairvoyance, all wrapped in dense yet riveting prose.

It won him a devoted readership across wide swaths of the US and global left, while also commanding respect in some of the halls of academia and the more mainstream public sphere. Few other thinkers occupy such a central place in graduate seminar syllabi and socialist reading groups while also being influential enough to attract the attention of the MacArthur Foundation and the ire of real-estate developers, along with attempts at exposés from the Los Angeles Times, Salon, and the Economist, among others. (The Los Angeles Times, for its part, shifted to more appreciative profiles of Davis later on).

On its own, Davis’s writing would be more than enough to be remembered as a giant of the Left. But he combined this with a lifetime of activism, organizing, and engagement, from his early years organizing with Students for a Democratic Society to participating in wildcat strikes as a truck driver and meatpacker to mentoring new generations of socialists in recent years. He was also generous as an academic mentor, taking the time to read, comment, and inquire about the work of graduate students and junior scholars just finding their way. Again, I am hard pressed to think of others who combined these qualities to the degree that Davis did.

Unfortunately, I cannot add any personal remembrances of Davis to this piece, as I never had the good fortune of meeting him myself, though I have long been in his orbit. I was first exposed to him as an undergraduate at Oberlin College, where politics professor Chris Howell kept a copy of Prisoners of the American Dream on reserve at the library for his students. Later, when I went to work for Teamsters for a Democratic Union (TDU), Davis’s writings on labor and the Left became a critical part of my political education, which I read alongside those of Kim Moody, Mike Parker, Jane Slaughter, Bob Brenner, and others.

When I made the transition from labor organizer to labor scholar, Davis stayed with me. I assigned his work in my social movements class and my seminar on “Capitalism, Socialism, and Democracy.” This ensured that I would have the privilege of revisiting and reengaging with his writing year after year. I never ceased to be amazed at the new insights I gleaned from each additional rereading and new ideas that would come to me after sitting with his work.

It reinforced for me not just how insightful Davis was as a thinker but how generative he was. He provided a jumping-off point for countless other scholars to take our own deep dives — even if we might never get as deep as he did.

Indeed, as I posted on social media back in 2018, as I was preparing to teach “Why the US Working Class is Different” in my seminar, “I’m amazed at how [Davis] can casually toss off ideas for about five dissertations in a single paragraph.”



Many of my students had similar reactions to his work, consistently mentioning it as a highlight of the course. Likewise, for me, teaching his work has been a highlight of my life as a professor.

I did come very close to meeting Davis this past September. I had wanted to interview him about his time doing rank-and-file organizing as a Teamster and meatpacker in the 1970s for a book I’m working on with Jacobin editor Micah Uetricht about the Left’s “turn to industry” in that period, when members of socialist organizations took jobs in factories for organizing purposes. It’s a part of Davis’s life that was often mentioned in various profiles but rarely explored.

After I learned of his shift to palliative care, I figured that I had missed my opportunity, but seeing several profiles of him based on lengthy interviews published in the following months made me think that I might still have a chance. So I emailed him and was surprised to receive a reply almost immediately. He was happy to talk but could likely only handle an hour-long interview. We made plans for me to travel down to San Diego the following week, with the caveat that I should check with him the day before.

As scheduled, I wrote him the day before and received a reply: “I had a visit from my end-of-life physician this morning and she bluntly told me cancel all interviews or visits from friends. Apologies.”

While we had to cancel the visit, I was at least able to share with him how much his work influenced my own, how much my students get from reading him, and to thank him for his contributions toward building a better world.

Those contributions may now have come to an end, but they will live on in every student and organizer whose world will make a little more sense, and whose path to changing it will be a little clearer, thanks to Mike Davis.

Barry Eidlin is an associate professor of sociology at McGill University and the author of Labor and the Class Idea in the United States and Canada.

SEE LA REVUE GAUCHE - Left Comment: Search results for MIKE DAVIS 

https://plawiuk.blogspot.com/2022/10/mike-davis-1946-2022-enemy-of-state.html

https://plawiuk.blogspot.com/2022/10/what-they-learned-from-dresden-searing.html