• Ground beef reaches record $6.31 per pound in August as flesh-eating screwworm parasite devastates North American cattle trade
• U.S. cattle imports from Mexico halted after New World screwworm detected less than 70 miles from Texas border
• Agriculture officials from Canada, Mexico and America meet this week to coordinate response as beef prices surge 14% year-over-year

WASHINGTON, D.C. (TDR) — American carnivores are paying unprecedented prices at the meat counter as a flesh-eating parasite ravaging Mexican cattle herds forces border closures that have choked off a billion-dollar livestock trade. Agriculture officials from the United States, Canada and Mexico will convene this week in an urgent effort to coordinate their response to the screwworm crisis that has sent beef prices to historic highs.

A pound of ground beef reached an average price of $6.31 in August, the highest price ever recorded, according to data from the St. Louis Federal Reserve. Consumer Price Index figures from the Bureau of Labor Statistics show beef prices increased just under 14% in August compared to 12 months earlier — a rate far outpacing overall food price increases. The Fed’s next price report, due Wednesday, is expected to confirm the continuing upward trend.

Border closure squeezes supply

The record prices arrived in September following a dramatic slowdown in American beef production caused by federal bans on Mexican feeder cattle. The bottleneck has forced ranchers to keep cattle alive longer, driving up costs for feed and care while simultaneously reducing the available food supply for American consumers. Mexican ranchers, who exported 1.25 million cattle to the U.S. in 2024, have seen that number plummet to fewer than 200,000 head this year — less than half their historical pace.

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The crisis stems from the New World screwworm, a parasitic fly whose females lay up to 300 eggs at a time in open wounds on warm-blooded animals. The larvae burrow into living flesh with sharp mouths, feeding on tissue and killing full-grown cattle within one to two weeks if left untreated. First detected in Panama in July 2023, the pest has steadily advanced northward through Central America and into Mexico.

Fewer cattle mean higher beef prices, increasing inflation at the checkout line.

The U.S. Department of Agriculture first suspended cattle imports in November 2024 after confirming screwworm cases in southern Mexico. Since then, more than 2,258 infections have been identified across the country. The most alarming detection came in September when an infected cow was reported in Sabinas Hidalgo in Nuevo León state — less than 70 miles from Laredo, Texas. Mexican officials notified USDA last weekend of another case near Mexico City, approximately 390 miles from the Texas border, prompting renewed concerns about the parasite’s northward march.

Economic devastation on both sides

The import ban has created a brutal economic paradox. American ranchers desperate to refill their emptying feedlots face a tightening supply that’s driving up prices for the few cattle available. Meanwhile, Mexican ranchers confronting a glut of livestock they cannot legally export are ready to sell at steep discounts but have no market access.

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“We’re running out of time,” said Martín Ibarra Vargas, a 57-year-old Sonora rancher whose family has raised cattle for three generations. The cattle export business generated $1.2 billion for Mexico last year, but the repeated border closures have forced his family to diversify into beekeeping, sheep raising and milk sales — earning just a fraction of what cattle exports once provided. He calls these “tiempos de vacas flacas” — times of the lean cows.

Texas Agriculture Commissioner Sid Miller warned the ban “could send shockwaves through the beef market,” noting that feeder steers — which make up a large portion of Mexican cattle imports — are forecast to see prices rise 8% in 2025. About 3% of U.S. cattle typically come from Mexico, but that seemingly small percentage plays a crucial role in American beef production chains.

A crisis years in the making

The screwworm outbreak compounds existing pressures that have shrunk America’s cattle herd to 86.7 million head — the lowest level since 1951. This marks the sixth consecutive year of inventory decline, driven by prolonged droughts since 2020, elevated grain prices, inflation and rising interest rates that have made cattle farming increasingly expensive. While improved breeding and feeding techniques have maintained production levels despite fewer animals, the mathematical reality remains stark: fewer cattle eventually means less beef.

Agricultural economist Derrell Peel warned consumers should expect continued price increases for at least two to three years before supply recovers enough to moderate costs. “I anticipate that it’s going to get tighter before it gets better, which probably means that prices will continue to go even a little higher than they are,” Peel told Newsweek.

Fighting back with science

Both nations are investing heavily in eradication efforts. Mexico announced in July it’s building a $51 million facility to produce 100 million sterile screwworm flies per week once completed in the first half of 2026. The U.S. is contributing $21 million to the project while Mexico spends $30 million. Releasing sterile flies — which mate with wild flies but produce no offspring — is a proven strategy for controlling the pest population.

Winter weather may provide temporary relief, as the flies cannot survive freezing temperatures. However, that’s unlikely to impact eradication efforts in southern Mexico, where cold weather rarely occurs. Until containment is achieved, Agriculture Secretary Brooke Rollins announced the ban will continue on a “month-by-month basis.”

With beef prices unlikely to decline for years and the parasite inching closer to American soil, should the federal government prioritize building domestic sterile fly production facilities rather than relying on future Mexican capacity?

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