How important is cybersecurity for the agricultural chain?

How important is cybersecurity for the agricultural chain?

Cybersecurity is no longer a trend in the agricultural chain: it is now considered a prime necessity. After all, technology has become indispensable for optimizing production routines and providing a series of advantages for both large companies and small farmers…

However, there are concerns related to the adoption of technological tools. These include the protection of operational infrastructure. In this sense, issues such as data leaks require alternatives to guarantee cyber security in agribusiness.

At Hedgepoint, we work to ensure that our clients feel protected in relation to their management systems. Do you want to know all the details about this and how we work?

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What is cybersecurity in the agricultural chain?

Cybersecurity involves a set of practices aimed at protecting the information assets of systems, computers and servers. The aim is to ward off threats and malicious intrusions in order to ensure the confidentiality and integrity of data.

It was in the 1970s that digital security was strengthened, with the first protection initiatives implemented by ARPA (Advanced Research Projects Agency). In the context of the Cold War, this concern gained visibility and culminated in the development of the first antivirus in 1987.

In the agricultural chain, cybersecurity protects information systems, networks and data from cyber threats. This need has arisen due to the increasing digitization and adoption of technologies in the agricultural sector.

With the implementation of automation systems, remote sensors, drones and cloud computing, agribusiness has become highly dependent on digital infrastructures. However, interconnectivity has intensified exposure to cyber risks, such as malware attacks, data theft and disruption of operations.

Cybersecurity in agribusiness is also driven by the critical importance of agriculture to global food security and the economy. A successful cyber attack can compromise food production, affect distribution and impact agricultural markets.

Agricultural information systems also contain sensitive and valuable data, such as information on crops, herds, weather conditions and management tools.

To meet these challenges, the agricultural sector is investing in cybersecurity solutions tailored to its specific needs. Below, we explain more about how this happens in practice.

How does cybersecurity work for participants in the agricultural commodities market?

In agribusiness, cybersecurity operates in a dynamic and global environment. Transactions and communications take place on a large scale, between different countries and using a variety of digital platforms.

Participants in this market, which include producers, traders, distributors, investors and financial institutions, are subject to a variety of cyber threats. To protect their digital assets and maintain the integrity of transactions, they must embrace cybersecurity actions.

It’s a process that involves adopting information security practices such as user authentication, data encryption, network monitoring and threat detection solutions. Participants in the commodities market also invest in education and training to make employees aware of cyber risks and the best security strategies.

Collaboration with business partners, regulators and cybersecurity experts strengthens defenses against emerging threats. In this way, the agricultural chain improves its resilience to digital challenges.

Find out more:

• Technology: trends and relevance in the commodities market

Why is cybersecurity important in the agricultural sector?

In 2023 alone, the number of cyber attacks in Brazil grew by 56.4%, according to data from Unit 42. The Global Risk Report 2024 identifies cyber insecurity as one of the top 5 market risk factors over the next 2 years.

According to the report, one of the structural forces that will shape global risk management over the next decade is technological acceleration. Companies will have to face even greater challenges to protect their data.

This is an issue that is particularly acute in the context of the rise of artificial intelligence (AI), which is capable of quickly translating fraud attacks into different languages. In this scenario, cybercrime is a constant and long-term concern.

Therefore, cybersecurity measures are fundamental to providing advantages that reinforce their importance. The main benefits include:

1.    Protection of sensitive data

In the commodities sector, companies deal with a large amount of sensitive data related to:

• Financial transactions, supply chains, contracts and negotiation strategies.

This data is valuable and any compromise can result in significant losses, reputational damage and violation of privacy regulations. Cybersecurity protects this information from unauthorized access, data theft and invasions of privacy.

2.    Continuing and expanding negotiations

Disruption to operations affects not only individual companies and producers, but also the entire agricultural chain and the financial markets. Cyber-attacks can paralyze trading platforms, payment systems and infrastructure.

There is a risk of financial losses and delays in the delivery of essential products, for example. Therefore, the implementation of cybersecurity is essential to guarantee the continuity of operations in the commodities market.

3.    Regulatory compliance

The commodities market is subject to a series of regulations and compliance standards, which include specific requirements relating to data security. Organizations that fail to comply with these regulations are subject to severe fines, litigation and reputational damage.

As such, companies in the commodities sector must invest in cybersecurity to ensure that they comply with applicable laws and regulations. In Brazil, they need to comply with the General Data Protection Law (LGPD).

4.    Protection against attacks

The commodities sector is an attractive target for cybercriminals looking for quick financial profit. Cyber attacks can directly impact financial transactions to manipulate commodity prices or obtain inside information.

Therefore, investing in cybersecurity helps protect against these types of attacks, as it guarantees integrity and confidentiality.

Hedgepoint: risk management combined with cyber security

Hedgepont is present on five continents to connect local and global commodity markets. We offer hedging products that use technology to facilitate continuous transactions, always adopting cybersecurity.

With the recent achievement of the Hacker Rangers White Certified certification, we have further strengthened our commitment to cybersecurity in the agricultural sector. This recognition validates our efforts and motivates us to continue investing in the ongoing awareness of our team.

Our mission is to keep the customer as the focal point of all our efforts and processes. Combining market intelligence, technological tools, and transparency, we provide price risk management.