USDA Eases Mexican Cattle Ban, But Beef Prices Expected to Remain High

The U.S. Department of Agriculture (USDA) plans to reopen the largest livestock inspection port on the U.S.-Mexico border this Thursday, expanding cattle supplies after a year-long ban. Despite the move, government and industry officials do not expect an immediate reduction in record-high beef prices for American consumers.

Port Reopening and Supply Details

The USDA will resume livestock trade at the port in Santa Teresa, New Mexico, which was closed last year to prevent the spread of New World screwworm, a pest that can be devastating to cattle. According to the agency, this single port inspected approximately 43% of all cattle imports from Mexico over the last five years.

Officials anticipate between 750 and 1,600 cattle will cross daily, down from a previous high of around 3,000, due to new treatment protocols. New Mexico Agriculture Secretary Jeff Witte said the imports could help ease pressure on U.S. feedlots currently operating below capacity. This follows the reopening of a smaller port in Douglas, Arizona, a month ago, which has seen about 6,500 cattle cross so far, according to USDA data.

Market Impact and Price Outlook

Industry experts caution that the reopening will not quickly lower consumer beef prices, which saw ground beef hit a record near $7 per pound last month. The primary reason is the time required to raise the imported animals for processing.

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"There’s not going to be a change in beef supply from those cattle crossing the border anytime soon," said Jeff Stolle, vice president of marketing for the Nebraska Cattlemen industry group. Experts estimate it takes about five to eight months to raise the imported cattle to be ready for slaughter. Furthermore, the overall U.S. cattle supply remains historically tight, with the national herd at a 75-year low of 86.2 million head as of January following years of drought.

Screwworm Outbreak Contained

The initial ban was prompted by screwworm concerns after a case was found in a Texas calf in June. However, U.S. infestations have been limited to two active cases, including one horse in New Mexico. Officials expressed confidence in resuming trade due to stringent port protocols and the USDA's rapid response, which includes releasing sterile flies to combat the wild screwworm population.

The USDA has indicated it will next consider reopening a port in Columbus, New Mexico, as it continues to manage the pest situation. While cases have continued to rise in Mexico, U.S. officials believe their containment strategies are effective.