Border Trade Block, Beef Surge: Mexico Gains While Texas Stumbles

The United States and Mexico have seen a surprising shift in their cattle trade after the U. S. halted imports from Mexico to stop the spread of screwworm, a fly that bites and can kill livestock. The move left many U. S. feedlots, like Lubbock Feeders in Texas, without the cattle they used to bring in from Mexico. The result? Some feedlots are closing or shrinking, and beef prices have climbed to record highs. At Lubbock Feeders, a company that has run cattle for seven decades, the pens are almost empty. Owners say the loss of Mexican livestock—about 4‑5% of U. S. beef supply before the ban—has forced them to cut back. The company can house up to 40, 000 animals but now keeps only a few thousand. Employees who once watched hundreds of heads each day now have far less work, affecting their morale and income. Meanwhile, in northern Mexico’s Coahuila state, farmers who used to ship live cattle north are turning their focus inward. Enrique García and others have built new feedlots, hired more staff, and begun processing beef locally. They hope to sell directly to U. S. consumers once border rules change. Mexican exporters saw a 23% jump in sales to the U. S. during early 2026, and state officials plan to double this next year.The screwworm problem is serious. When female flies lay eggs in animal wounds, the larvae feed on tissue and can cause death if untreated. The U. S. once eradicated a massive outbreak in the 1940s with sterile fly releases, but it took decades for the cattle industry to recover. The current border closure aims to keep the pest out of U. S. pastures while Mexico strengthens its own inspection and treatment protocols. Some U. S. officials argue that reopening the border with proper safeguards could restore cattle flows and lower beef prices. Others warn that the risk of screwworm returning is too great, especially given recent climate shifts and drought conditions that stress both U. S. herds and Mexican farms. The debate continues as lawmakers weigh trade benefits against animal health concerns. The shift in supply chains has ripple effects. U. S. meatpackers, like Tyson Foods, are already trimming operations due to higher cattle costs and lower herd numbers. Workers in slaughterhouses face layoffs, while some plant closures have already happened. The future of the U. S. beef industry may depend on whether Mexico can maintain its growing domestic processing capacity or if U. S. producers will rebuild their herds in the face of environmental challenges.