US-Mexico screwworm border closure shifts beef trade toward Mexico as Texas feedlots struggle

AMERICAS – The suspension of cattle imports from Mexico after screwworm concerns has disrupted long-established livestock flows across the US-Mexico border while leaving major Texas feedlots with a sharply reduced supply.

The United States once imported more than one million Mexican cattle annually, accounting for roughly 4% to 5% of animals used in beef production, but the halt has coincided with a US herd that has fallen to a 75-year low amid drought conditions and wildfires.

At Lubbock Feeders in Texas, a facility operating for decades, pen rows that once held tens of thousands of cattle now sit largely empty as headcounts have dropped from a 40,000 capacity to about 4,000, pushing the operation toward closure.

Border closure reshapes North American cattle flows

In northern Mexico, especially Coahuila, producers have responded by investing in local fattening operations and slaughter facilities, keeping cattle within the country longer and shifting from live exports to processed beef shipments.

One Mexican rancher said the change has allowed producers to expand operations and earn higher returns by processing beef domestically rather than shipping animals north.

US beef prices have climbed to record levels, prompting political responses including tariff adjustments on Argentine imports, investigations into meatpackers, and calls for increased domestic supply.

The Texas feedlot reported losing more than US$200 per head after high cattle prices made sourcing unviable, forcing it to stop bringing in animals.

The contraction has affected wider supply chains, including trucking, feed crop production, and meatpacking jobs that previously relied on cross-border cattle movements.

Mexico expands processing capacity and exports

The screwworm, a parasitic fly that can infest warm-blooded animals through wounds, triggered the border closure after authorities warned of containment risks despite decades of eradication efforts in the United States.

Mexican beef exports to the United States rose by 23% in the first four months of 2026 as processors expanded capacity and adapted to the trade shift.

Meanwhile, some Texas ranchers facing drought have been forced to reduce herd sizes significantly or sell cattle if rainfall does not return, raising concerns about long-term supply.

Industry participants in Mexico expect continued investment in processing and feedlots as the country captures more value from beef production previously centered in the United States.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.