BrownfieldAgNews reports:
Cattle supplies are expected to get even tighter following the USDA’s suspension of live cattle imports from Mexico due to the threat of New World screwworm.
Charley Martinez, an ag economist at the University of Tennessee, says the overall impact will depend on the length of the ban. “As we think about Quarter 2 of this year, and depending upon market conditions, you’re talking about anywhere between 5 to 7% of placements or receipts that are occurring are based on these Mexican cattle,” he says.
The USDA has said the suspension is indefinite, and the department will review containment efforts month by month.
He tells Brownfield that the longer the threat of New World screwworm continues, the greater the impact. “As we get into quarters 3 and 4 of this year, we could be really hitting a point where we have a substantial amount of cattle that historically are in our yards and are not in the yards anymore,” he says.
Martinez says when it comes to filling yards and profitability, the ban could hit producers along the southern ports of entry especially hard. He says the industry may need to explore other options to meet demand. “Do we look to Canada to find supplies,” he says. “Does demand for lightweights really pick up because they just need to get supply and more heads in the feedyard?”
In a recent interview with Brownfield, the CEO of the National Cattlemen’s Beef Association says the import ban will have an economic impact on the cattle industry, but protecting the health of the U.S. cattle herd is the top priority.
The USDA’s ban was implemented following the detection of NWS on farms in Mexico located about 700 miles from the U.S. border.
