Market Reaction to USDA Cattle Import Reopening
Shares of Tyson Foods Inc. (NYSE:TSN) and JBS NV surged, rising approximately 6.3% and 8.6% respectively, after the U.S. Department of Agriculture (USDA) announced it would resume cattle imports from Mexico. The USDA detailed a phased reopening that will commence on August 24 at the Douglas, Arizona port of entry.
Purpose and Background
The reopening is intended to alleviate a domestic cattle shortage that has been driving up costs for meatpackers. Mexico had previously exported over one million head of cattle annually, mainly younger animals processed in the United States, but the trade was largely halted in late 2024 to contain the spread of the New World screwworm (NWS) parasite.
Conditions for Reopening
The USDA made the resumption contingent on Mexico’s adherence to a Joint Action Plan. Every animal entering through the reopened ports will undergo full USDA inspection to confirm it is free of any signs of NWS. The agency identified the Mexican states of Sonora and Chihuahua as the lowest‑risk regions due to their established inspection programs and geographic distance from southern Mexico, where most NWS cases are concentrated. The closest active screwworm case to the Douglas port was detected on July 22, approximately 325 miles away.
Future Port Considerations
Following an evaluation of the initial reopening at Douglas, the USDA will consider adding the Santa Teresa, New Mexico, and Columbus, New Mexico ports to the import program. The timeline for any additional openings may be adjusted based on Mexico’s progress in meeting the Joint Action Plan milestones.
Official Comment
U.S. Secretary of Agriculture Brooke L. Rollins stated, “The closure of the Southern ports of entry for the last year has been a tough but necessary action to control the spread of NWS in Mexico and protect the American livestock industry.”