Texas screwworm cases could raise US beef prices

Key facts

• New World screwworm confirmed in Texas calves, first U.S. case since the 1960s.
• The parasite lays eggs in wounds, and larvae burrow into living flesh.
• A confirmed case exists 25 miles south of the Texas border in Mexico.
• Washington has halted cattle imports from Mexico for the past year.
• An outbreak could cost the Texas economy $1.8 billion.
• Feeder cattle futures extended losses, ending 1.7% lower on June 3.

The U.S. Department of Agriculture confirmed New World screwworm in Texas, marking the first detection since the 1960s. This follows cases in Texas calves and a confirmed case in Mexico, leading Washington to halt cattle imports from Mexico for the past year. The U.S. cattle herd is at a 75-year low, and the parasite's presence could further elevate beef prices. Experts estimate an outbreak could cost the Texas economy $1.8 billion. Feeder cattle futures initially dropped but then rallied, with traders concerned about demand impacts. The USDA believes it can contain the case, with containment protocols including sterile fly releases. A sterile fly production facility in Texas is expected to open in late 2027, while a facility in Panama releases 100 million sterile flies weekly. Mexico has reported over 27,000 screwworm cases since November 2024.