USDA to Restart Phased Live Cattle Imports From Mexico

Overview

• The USDA formally announced a phased restart of live cattle imports from Mexico starting August 24, limited initially to one Arizona entry point and subject to strict entry protocols.
• Markets reacted quickly on Monday with shares of major processors rising sharply, including gains near 10% for JBS and about 7.5% for Tyson as investors priced expected margin relief.
• Analysts at banks including Barclays and JPMorgan expect returning Mexican cattle to gradually lower U.S. cattle purchase costs and help reduce the multi‑hundred‑dollar per‑head losses processors have faced.
• Animal‑health officials warn the move carries biosecurity risk because Mexico still reports thousands of active New World screwworm cases and the parasite has produced recent detections in Texas; U.S. eradication capacity depends on a sterile‑fly facility not due to operate until late 2027.
• The flow of Mexican feeder cattle previously averaged about 1.18 million head per year before the 2024 embargo, and restoring that trade could ease consumer beef prices over months but will not quickly rebuild the U.S. herd, which remains near five‑decade lows.