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

The United States and Mexico have experienced a dramatic shift in their cattle trade after the U.S. halted imports from Mexico to stop the spread of screwworm—a fly that can kill livestock. The move left many U.S. feedlots, such as 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.

Lubbock Feeders: A Century‑Old Operation in Crisis

Capacity vs. Reality
Can house up to 40,000 animals
Now keeps only a few thousand after the ban
Impact on Staff
Employees who once watched hundreds of heads each day now have far less work, affecting morale and income
Market Share Lost
Mexican livestock accounted for about 4‑5% of U.S. beef supply before the ban

Mexican Farmers Turn Inward

In northern Mexico’s Coahuila state, farmers who used to ship live cattle north are pivoting:

New Feedlots & Local Processing
Enrique García and others have built new facilities, hired more staff, and begun processing beef locally
Export Outlook
Mexican exporters saw a 23% jump in sales to the U.S. during early 2026
State officials plan to double this next year

Screwworm: A Persistent Threat

Lifecycle
Female flies lay eggs in animal wounds; larvae feed on tissue and can cause death if untreated
Historical Context
The U.S. eradicated a massive outbreak in the 1940s with sterile fly releases
Current Measures
Border closure aims to keep the pest out of U.S. pastures while Mexico strengthens inspection and treatment protocols

Policy Debate: Reopening vs. Risk

Proponents of Reopening
Argue that proper safeguards could restore cattle flows and lower beef prices
Opponents
Warn that the risk of screwworm returning is too great, especially with recent climate shifts and drought conditions

Ripple Effects Across the Supply Chain

Meatpackers
Tyson Foods is trimming operations due to higher cattle costs and lower herd numbers
Workforce Impact
Workers in slaughterhouses face layoffs; some plant closures have already occurred
Future Outlook
The U.S. beef industry’s future may hinge on whether Mexico can maintain its growing domestic processing capacity or if U.S. producers rebuild their herds amid environmental challenges

Bottom Line

The screwworm ban has reshaped the U.S.–Mexico cattle trade, creating economic strain for feedlots, prompting Mexican farmers to build local capacity, and sparking a policy debate over the balance between trade benefits and animal health risks. The coming months will determine whether the industry can adapt to this new reality.