New World Screwworm Fallout Could Boost Mexico’s Beef Market Position

Peel says Mexico has a much greater capability to expand its beef industry than it did 20 or 30 years ago in terms of its feeding and packing infrastructure.

NASHVILLE, Tenn. (RFD-TV) — With concerns growing over the spread of New World Screwworm, Mexico’s cattle industry could be positioned as a stronger global beef competitor.

Livestock market economist Dr. Darrell Peel says that with U.S. borders still closed to imports, Mexico may look to expand its own processing and export operations.

“We’ve imported cattle from Mexico for many, many years, and then over the years, we’ve developed a very strong bilateral trade with Mexico in beef, both exports and imports,” Dr. Peel explained. “You know, this could have implications for all of those things. If Mexico keeps all these cattle in the country, they do have more infrastructure now to feed cattle and process cattle in Mexico. They are a significant beef-exporting country now.”

Peel says Mexico has a much greater capability to expand its beef industry than it did 20 or 30 years ago in terms of its feeding and packing infrastructure.

“If this goes long enough and they figure out how to deal with these cattle that don’t have the opportunity to be exported to the U.S., it may have very long-lasting, if not permanent, implications for the way that two industries work together going forward on a more or less permanent basis.”

Related Stories
Securing Critical Water Resources for South Texas Agriculture
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy

LATEST STORIES BY THIS AUTHOR:

Co-Bank Lead Dairy Economist, Corey Geiger, joined us on Friday’s Market Day Report for a further look at the drop in replacement heifers and the trend’s longterm impact on dairy producers and cattle prices.
The agriculture workforce’s struggles with labor issues in recent years have opened the door to more automation and integration of artificial intelligence (AI).
RanchHERs Lyn & Sherrie Ray breed horses and raise cattle in New Mexico, while also helping to mentor the next generation of ag leaders
Today in Wyoming, Rural Media Group’s late founder, Patrick Gottsch, will be inducted into the Cheyenne Frontier Days Hall of Fame! The rodeo’s CEO, Tom Hirsing, joined us to share why Patrick is so deserving of this honor.
How one firm’s numbers compare to USDA data as farmers prepare for a massive corn and soybean harvest, and the significant issue brewing for beans if the U.S.'s longstanding bulk export to China falls through as they switch to offense on President Trump’s tariffs.
This Week in Louisiana Agriculture shows us why breaking even is going to be a challenge for corn producers across the state.