By Zoey
A year after Washington shut the border to Mexican cattle imports in an effort to prevent the spread of the destructive New World screwworm parasite.
The decision is reshaping the North American beef industry in ways that are benefiting Mexican producers while placing increasing strain on ranchers, feedlots and meat processors across the United States.
In the cattle-producing heartland of West Texas, the effects are becoming impossible to ignore. At Lubbock Feeders, a feedlot that has operated for seven decades and survived numerous agricultural downturns, large sections of its sprawling facility now stand nearly empty.
The operation, which once relied heavily on cattle imported from Mexico, has seen its business collapse as the supply of livestock crossing the border disappeared. Managers say the feedlot, capable of housing up to 40,000 cattle, now contains only a fraction of that number and faces an uncertain future.
For decades, Mexican cattle formed an important part of the American beef production system. Young cattle were raised in Mexico, shipped north to U.S. feedlots where they were fattened, and later processed in American slaughterhouses before reaching supermarkets and restaurants. The system supported thousands of jobs across transportation, agriculture, feed production and meat processing.
That supply chain has been disrupted since the U.S. government suspended imports of Mexican livestock over concerns about the spread of the New World screwworm, a flesh-eating parasite capable of infecting cattle and other warm-blooded animals.
The issue gained renewed urgency this week after officials confirmed the first case of screwworm detected in Texas in six decades. The discovery highlighted fears that the pest, despite the border restrictions, has now reached American territory.
The screwworm is considered one of the most damaging livestock parasites in the world. Female flies lay eggs in open wounds, and the emerging larvae feed on living tissue. If not detected and treated quickly, infestations can cause severe injury and death in animals.
American officials argue that restricting livestock movement remains one of the most effective tools available to slow the spread of the parasite. Agriculture Secretary Brooke Rollins has defended the border closure as a necessary measure to protect the nation’s livestock industry while federal and state authorities work to contain the threat.
Yet many within the U.S. cattle sector say the economic consequences have been severe.
American cattle inventories were already shrinking due to years of drought across key ranching states. Dry conditions reduced grazing land, increased feed costs and forced many ranchers to reduce herd sizes. The loss of Mexican cattle imports further tightened supplies, pushing cattle numbers to their lowest levels in decades.
The result has been a dramatic increase in beef prices. Consumers have faced record-high prices at grocery stores and restaurants, while businesses throughout the supply chain struggle with rising costs and reduced production volumes.
At Lubbock Feeders, managers say the economics of buying domestic cattle no longer make sense. High cattle prices have squeezed profit margins to the point where bringing in additional livestock can result in significant losses on every animal.
Employees who once worked in a busy operation now face long periods of inactivity. Routine inspections that previously required hours can now be completed in minutes because there are so few animals remaining on site.
For longtime workers, the slowdown has been emotionally difficult. Many employees have spent their entire careers in the cattle industry and now worry about the future of businesses that have operated for generations.
The challenges extend well beyond Texas feedlots.
Across the United States, meat processors are struggling to secure enough cattle to keep facilities running efficiently. Major beef companies have reported significant financial pressure as the cost of livestock rises faster than the value of the beef products they sell.
Several large processors have responded by reducing operations and cutting jobs. Industry leaders warn that without additional cattle supplies, more facilities could face downsizing or closure.
The supply shortage has also become a political issue. Rising beef prices have added to broader concerns about the cost of living as American consumers continue to grapple with higher food and fuel expenses.
President Donald Trump has sought ways to address the situation, including encouraging greater beef imports from countries such as Argentina and directing federal agencies to examine pricing practices within the meatpacking industry.
Many ranchers, however, argue that rebuilding the domestic cattle herd remains the most effective long-term solution. The challenge is that herd expansion is a slow and costly process.
Producing additional cattle can take years, and ranchers remain cautious because of continued drought conditions and uncertainty about future market prices. Many fear investing heavily in expansion only to face another period of unfavorable weather or falling profits.
In parts of Texas, some producers are considering further herd reductions rather than expansion. Without sufficient rainfall, maintaining large numbers of cattle becomes increasingly difficult and expensive.
While the American industry struggles, Mexican producers are experiencing a markedly different reality.
Unable to export live cattle to the United States, many ranchers in northern Mexico have invested in feedlots, processing facilities and meat-packing operations. Rather than shipping animals north for finishing and slaughter, they are increasingly keeping the cattle in Mexico and exporting processed beef instead.
The strategy has created new jobs and generated additional revenue within Mexico’s agricultural sector.
In the northern state of Coahuila, one of Mexico’s most important livestock-producing regions, ranchers and local officials say investments in meat processing infrastructure have accelerated since the border closure.
Producers who once depended heavily on live-animal exports are now expanding their operations to capture more value from each animal. By feeding, slaughtering and processing cattle domestically, businesses retain profits that previously flowed into the U.S. supply chain.
Some ranchers report revenue increases since shifting toward beef production rather than live-cattle exports. Industry officials say the transition has strengthened Mexico’s position in the North American beef market.
The numbers reflect that shift. Mexican beef exports to the United States rose sharply during the first four months of 2026, demonstrating how processors south of the border have adapted to the restrictions.
Officials in Coahuila are now working to expand slaughterhouses and packing plants certified to meet both Mexican and U.S. standards. Government authorities believe additional processing capacity will further increase exports and help producers capitalize on growing demand.
Industry leaders in Mexico argue that what began as a challenge has ultimately transformed into an opportunity. Instead of exporting raw livestock, the country is increasingly exporting higher-value meat products.
Meanwhile, American cattle feeders and meat processors warn that the longer the border remains closed, the harder it will be for some businesses to survive.
Many industry executives believe carefully managed inspections and treatment protocols could allow cattle imports to resume while still protecting animal health. They argue that trained personnel and screening procedures are already available at border crossings.
Federal officials, however, maintain that public and animal health concerns must take precedence. The discovery of screwworm inside the United States has only reinforced their determination to keep restrictions in place until authorities are confident the threat is under control.
The growing divide between the fortunes of the two countries’ beef industries illustrates how a single animal health crisis can reshape an entire market. While Mexico is expanding its processing capacity and increasing exports, parts of the American cattle sector are contracting under the weight of shrinking herds, higher costs and uncertain prospects.
For ranchers, feedlot operators and meatpacking workers across the United States, the coming months may determine whether the industry can stabilize and rebuild—or whether the current crisis marks the beginning of a longer period of decline for one of America’s most iconic agricultural sectors.
Original article
Comments