The U.S. beef industry is facing a significant contraction as a year-long federal ban on Mexican livestock imports, intended to prevent the spread of New World screwworm, disrupts supply chains. While U.S. feedlots like Lubbock Feeders in West Texas are emptying and closing, Mexican producers in states like Coahuila have capitalized on the shift by expanding their own processing infrastructure to export beef directly to the American market.
Did You Know? The New World screwworm is a parasitic fly that infests warm-blooded animals by laying eggs in wounds. During a 20th-century epidemic, the U.S. successfully used a massive eradication effort involving the release of trillions of sterile flies from a Texas production plant, a facility the government is now working to resurrect.
The Decline of U.S. Feedlots
Lubbock Feeders, a 70-year-old facility, is currently on the brink of closure. Owner Kyle Williams reports that the feedlot, which once held up to 40,000 head of cattle, now houses only about 4,000. Because high prices for U.S.-sourced cattle make operations unprofitable, the feedlot stopped bringing in new animals months ago. Assistant manager Bobby Swift, a third-generation employee at the site, noted that the lack of activity has left staff with little to do, describing the impact as mentally taxing.
Mexico’s Shift in the Supply Chain
The border closure has accelerated a transition in Mexico’s beef industry. Rather than exporting live cattle to the U.S. as they did in the past—when they provided 4% to 5% of all cattle used for U.S. beef production—Mexican producers are now keeping animals longer to fatten and process them locally. Isaias Montemayor, Coahuila’s deputy minister of livestock and rural infrastructure, noted that by adding value through processing, producers can often earn profits equal to or greater than those gained from selling live calves. Consequently, Mexican beef exports to the U.S. surged by 23% during the first four months of 2026.
Industry Pressure and Future Outlook
The U.S. beef industry is struggling with domestic cattle supplies that have hit a 75-year low, exacerbated by drought and the import ban. Major meatpackers, including Tyson Foods, have reported steep losses and have moved to shutter or slash operations at plants in Nebraska and Texas. While some industry leaders, such as PMI Foods president Darin Parker, argue the USDA should safely reopen the border using established inspection protocols, the recent confirmation of a screwworm case on a Texas ranch suggests the closure may persist. For producers like Eddie Womack in Tulia, Texas, the combination of drought and high feed costs means they may be forced to further reduce their herds if conditions do not improve this summer.
Expert Insight: The current crisis highlights a structural shift in North American agriculture. By forcing the U.S. to rely on domestic supply while simultaneously incentivizing Mexico to build out its own processing capacity, the border closure has created a long-term competitive challenge for American feedlots. Even if the border were to reopen, the infrastructure investments now taking root in Mexico suggest that the previous reliance on importing live cattle may not return to historical levels.
Frequently Asked Questions
Why did the U.S. close the border to Mexican livestock?
The U.S. government halted imports a year ago to prevent the entry of the New World screwworm, a flesh-eating parasite that Mexican authorities have struggled to control. U.S. Agriculture Secretary Brooke Rollins stated that suspending the movement of cattle is necessary to slow the pest’s spread.
How has the ban affected U.S. beef prices?
Domestic beef prices have reached record highs this year. This is due to a combination of the import ban, which cut off a supply source of over a million cattle annually, and drought conditions that have forced American producers to slash their herds.
What is the current status of the screwworm in the United States?
As of June 2026, the first case of screwworm in 60 years was confirmed on a Texas cattle ranch. Federal, state, and local efforts are currently focused on containing the pest and implementing quarantine protocols.
How do you think the shifting supply chain will impact the long-term price of beef for the average consumer?
