Reopening US border to Mexican cattle not expected to drop beef prices

Key Points:

• The U.S. plans to reopen a border crossing in Douglas, Arizona, to allow cattle imports from Mexico starting Monday, aiming to alleviate record-high beef prices amid concerns about the New World screwworm parasite.
• The phased reopening follows a border closure in May 2025 due to the screwworm threat, which contributed to a shrinking U.S. cattle herd—the smallest in 75 years—and subsequent beef price surges.
• Despite reopening efforts and allowing tariff-free ground beef imports, experts caution that the impact on beef prices will be minimal and slow due to the time needed to rebuild the herd and restore traditional import levels.
• The U.S. cattle industry faces additional challenges from drought and historically low cattle prices, which have reduced herd sizes and led to beef processing plant closures, further constraining supply.
• The USDA and officials emphasize a science-based, cautious approach to reopening the border, with strict inspections to prevent screwworm spread, but rebuilding the herd and lowering beef prices is expected to take years.