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USDA Flags Possible Screwworm in Texas, Beef Stocks Drop

Bloomberg Markets •
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USDA officials warned that a sample from a Texas cattle ranch may contain New World screwworm, a parasite that can kill livestock in days. The detection would be the first in the United States since 2016, when the pest was eradicated from Florida. A lab in Iowa now awaits confirmation for final analysis on today.

If confirmed, federal regulators could impose movement restrictions on cattle, tightening rules that already curb trade after the 2016 outbreak. Meatpackers would feel the strain as supply chains tighten. Tyson Foods shares slid 5.8% to a five‑month low, while JBS stock fell 3% to its lowest level in nearly a year of cattle sales decline.

The U.S. has halted live cattle imports from Mexico and built sterile‑fly release sites to curb spread. Yet cases in Mexico have risen, with the last bovine case found 40 miles from the border and a goat case 25 miles away. The threat remains low for humans but tightens industry oversight regulatory response intensified today.

Market reaction already hit beef processors; Tyson and JBS shares fell sharply, reflecting investor anxiety over potential supply shocks. The event underscores the fragility of the U.S. beef supply chain and the cost of pest outbreaks. Regulators will likely enforce stricter controls, pressuring producers to maintain tighter biosecurity for 2025.