A recent outbreak of screwworm, a flesh-eating parasite, has been confirmed in Texas cattle, raising concerns about the potential impact on beef prices. The US Department of Agriculture (USDA) has confirmed at least three infected cattle in Texas, which could lead to higher labor and medicine costs for ranchers.

Background on Screwworm

Screwworm has been a longtime foe of American ranchers, with the New World screwworm fly being the bane of existence for US cattle ranchers since at least the 1930s. In the 1950s, scientists figured out they could sterilize flies to overwhelm the local fertile fly population, preventing females from reproducing. This led to the full eradication of the parasite in the 1960s.

However, cases have surged in Central America since 2023, and the fly has recently made its way up to Texas from Mexico. The USDA has broken ground on a facility to mass produce sterile screwworm flies in Texas, with production expected to start in November 2027.

Potential Impact on Beef Prices

The beef industry has already been grappling with the smallest cattle herd in 75 years due to prolonged droughts. Those smaller herds have helped drive retail beef prices to a record $9.64 per pound in April, up 13% from the previous year, according to USDA data. While it’s too soon to tell if prices will jump more because of the parasite, experts say screwworm cases will likely keep existing prices elevated for grocery shoppers.

A possible outbreak could cost $3 billion across the Southwest, according to a report by the Federal Reserve Bank of Dallas. However, the cattle industry isn’t there yet, and in the short term, consumers are unlikely to see a big change in beef prices.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.