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Texas Screwworm Outbreak: Two Cases, One County, Governor Declares Disaster — And Goldman Says It Could Get Ugly

Since the first screwworm detection in Texas triggered movement restrictions and a Canada livestock ban, the situation has deepened — both in confirmed cases and in economic stakes.
What's New: Second Case, Same County
The USDA's Animal and Plant Health Inspection Service confirmed Friday that a second New World screwworm (NWS) case was found in a one-month-old calf in Zavala County, Texas — approximately 5.6 miles from the first confirmed case, which was detected in a three-week-old calf near La Pryor, about 50 miles from the U.S.-Mexico border.
Both cases fall within what USDA calls an "established movement control zone and enhanced sterile insect dispersal area." Surrounding samples have tested negative so far. The challenge is that containment and eradication are two very different things.
What the Government Is Doing
Texas Governor Greg Abbott expanded his statewide disaster declaration Friday, authorizing all available state resources to respond. That includes fast-tracking sterile fly shipments and accelerating construction of a sterile fly production facility, according to Newsweek.
The sterile-fly strategy is the same one that eliminated NWS from the U.S. back in the 1960s. Millions of sterile male flies are released into the area — when wild females mate with sterile males, no larvae are produced, breaking the reproduction cycle. It worked before. Whether it works this time depends entirely on how fast and how wide the infestation spreads before the program scales up.
USDA Under Secretary Dudley Hoskins said Friday, "USDA has not wasted any time in this fight, we have defeated New World screwworm before, and we will do it again," according to CNBC.
Texas Farm Bureau President Russell Boening added: "Surveillance and reporting are a priority. The quicker an infestation is found, the quicker the New World screwworm can be eradicated."
Dr. Bud Dinges, director of the Texas Animal Health Commission, noted per The Guardian that the agency had been "actively preparing for a resurgence of NWS for over two years" after tracking northward progression from Central America beginning in 2023. That prep work is now being put to the test.
Canada Shuts the Door
The Canadian Food Inspection Agency announced Friday it will temporarily restrict livestock imports — including horses — from affected U.S. areas. Animals that originated in or transited through Texas within 21 days prior to crossing the border will NOT be permitted entry into Canada, according to CNBC.
This is a real trade hit. It adds pressure on an already strained North American livestock market.
The Economic Picture Is Worse Than the Headlines Suggest
The timing of this outbreak is particularly difficult for the U.S. beef industry.
Goldman Sachs analyst Thiago Bortoluci laid out the stakes in a note flagged by ZeroHedge. Texas holds 12.1 million head of cattle — 14% of the entire U.S. herd. It accounts for 15% of feeder cattle and 22% of cattle on feed. It is the single most important state for cattle shipped across state lines.
Bortoluci's assessment: the potential spread of NWS into Texas "could be disruptive" and would "further pressure on the U.S. cattle herd, extending what has already been a multi-year downcycle, with elevated cattle costs further squeezing packers' profitability."
The U.S. cattle herd is currently at a 75-year low. Beef prices are at record highs. Cattle futures have also hit record highs. This isn't a background agriculture story — it's a supply chain and inflation story that will show up in grocery bills.
Texas cattle represents $17 billion worth of the nation's beef industry, according to Newsweek. A widespread NWS outbreak doesn't just hurt ranchers — it hits every American who buys ground beef.
What Mainstream Media Is Getting Wrong
Center-left outlets like CNBC are covering this responsibly on the facts but burying the economic implications. The food-supply-is-safe reassurance is technically true — NWS doesn't infest meat products — but it distracts from the real threat: a shrinking herd, higher prices, and a parasite that already cost the U.S. decades of eradication effort.
Right-leaning ZeroHedge is the only outlet flagging the Goldman analysis and connecting the outbreak to the existing cattle supply crisis.
Neither side is spending much time on the upstream cause: NWS had been contained at the southern tip of Panama, then resumed northward spread starting in 2023 — reportedly facilitated by breakdowns in the sterile fly program in Mexico. That's a diplomatic and biosecurity failure that happened long before this week's headlines.
The Stakes Ahead
If this stays contained in Zavala County, it likely won't register beyond this news cycle. If it spreads — into a herd already at historic lows, in a state that drives a quarter of U.S. cattle-on-feed — beef prices climb. Ranchers take losses. Packers get squeezed.
The USDA says it has the tools. Texas says it has the plan. They beat this pest once before.
But that was six decades ago. And the herd wasn't already on life support.