Beef Import Suspension from Mexico Expected to Drive Up Feeder Cattle Prices
The USDA’s temporary suspension of beef imports from Mexico is set to impact feeder cattle prices, particularly in border states.
Charley Martinez, an extension specialist with the University of Tennessee, highlighted the significance of this decision, stating, “We now have shut off that valve immediately. It happened overnight, and in an environment where we already have tight supplies, we’re going to end up in a spot where we’re going to have tighter supplies.”
The Reason Behind the Suspension
The USDA’s Animal and Plant Health Inspection Service enacted the suspension following the detection of New World screwworm in cattle from Chiapas, a southern Mexican state near the Guatemala border.
While the outbreak hasn’t reached the U.S.-Mexico border, the precautionary move is already rippling through the cattle industry.
Economic Implications for Border States
Martinez explained that states like Arizona and Texas will feel the immediate effects. “You have feed lot operators that are needing cattle now, and they no longer have a supplier,” he said.
This sudden disruption forces feedlots to source cattle from sale barns, driving short-term demand and, consequently, higher prices.
The suspension could also have broader economic consequences if it extends over time. “With this happening basically at the beginning of the beef supply chain, there’s going to be increased prices or increased cost for certain players within the segment,” Martinez noted.
He warned that these costs will eventually reach consumers, affecting beef prices at retail.
Future Uncertainty
While the screwworm outbreak remains geographically contained, the suspension has added pressure to an already strained beef supply chain. As Martinez emphasized, “The longer this lasts, the greater the economic impact.”
The USDA has not indicated when the suspension might be lifted, leaving the cattle industry to navigate an uncertain path forward.
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