The detection of New World screwworm in Mexico has significantly impacted the U.S. cattle industry, prompting the USDA to pause live cattle imports from Mexico. Efforts are underway to establish a pre-clearance program to safely resume trade.
The proposed program involves holding and inspecting cattle in designated pens before they are transported to the United States. Both U.S. and Mexican authorities are working to implement this system quickly to minimize disruption while ensuring safety.
Economic Impact on U.S. Beef Production
The ongoing import restrictions are projected to have a substantial effect on U.S. beef production. Forecasts for 2025 have been revised downward by 20 million pounds, marking a decrease of nearly 1.4 billion pounds year-over-year.
Rising Prices Reflect Tight Supplies
With reduced cattle imports and tighter supplies, steer prices are expected to rise. The USDA anticipates a $3 increase in prices compared to last month’s forecast, highlighting the broader economic implications of the trade disruption.
