Tyson, JBS Shares Surge as US Reopens Mexico Cattle Imports After Screwworm Ban

The U.S. Department of Agriculture (USDA) is set to resume imports of Mexican cattle, ending a ban imposed over a year ago due to New World screwworm concerns. The initial reopening will occur at a port of entry in Douglas, Arizona, within 30 days, with plans to subsequently open two additional ports in New Mexico. This decision comes after a period of record-high U.S. beef prices and tight domestic cattle supplies, which had fallen to a 75-year low, impacting both consumers and meatpacking companies.

The import ban had significant repercussions for the U.S. beef industry, particularly in Texas, the largest cattle-producing state, where the $100 billion industry contracted. Meatpackers like Tyson Foods and JBS faced increased cattle costs due to the supply squeeze, leading Tyson to close a processing plant in Nebraska and JBS to announce the closure of a beef plant in Pennsylvania. Shares of these companies saw a surge following the news of the ban's lifting, signaling market relief.

The phased reopening is contingent on Mexico's adherence to a plan for screwworm control, with ports in Arizona and New Mexico chosen due to their distance from known screwworm infestations, making them less risky than resuming imports directly into Texas. The USDA emphasized that all cattle crossing the border will undergo thorough inspections to prevent the spread of the pest. Texas Agriculture Commissioner Sid Miller praised the decision as beneficial for ranchers and consumers but expressed continued concern about the screwworm and the prolonged impact of the closure on the industry.

The ban on Mexican cattle imports, implemented in May 2025, contributed to record-high U.S. beef prices and failed to completely prevent the screwworm from entering the U.S., with 42 cases detected, primarily in Texas, since June. Mexican President Claudia Sheinbaum welcomed the decision, highlighting its importance for Mexican ranchers and bilateral cooperation in pest control. While the immediate impact on consumer beef prices will be slow due to the time required for imported feeder cattle to reach slaughter weight, the move marks a significant policy shift aimed at restoring supply chain stability.