Weekly protein report: USDA approves $105 million in investments against New World Screwworm

19 June 2026

15 minute read

By: Jim Wyckoff

Europe

South America

North America

Asia

Cattle futures bulls have the pedal to the metal

August live cattle on Tuesday rose $5.95 to $249.20 and hit a four-week high. August feeders gained $5.325 to $366.875 and hit a five-week high. The cattle futures markets saw a strong session of price gains, making it four out of the past five with higher daily closes. At present, the New World screwworm situation is leaning fully bullish for cattle futures. The USDA Animal and Plant Health and Inspection Service (APHIS) on its NWS website is still reporting 12 total New World screwworm detected cases, in Texas and New Mexico. The technical postures for live and feeder cattle futures have also markedly improved the past week, which is inviting the chart-based specs back to the long sides. USDA at midday Tuesday reported very light cash cattle trading so far this week has $354.00. The agency said cash trade last week averaged $256.08, down 45 cents from the week prior.

Weekly USDA US beef, pork export sales

Beef: Net sales of 10,400 MT for 2026 were down 45 percent from the previous week and 8 percent from the prior 4-week average. Increases were primarily for Japan (2,900 MT, including decreases of 400 MT), South Korea (2,400 MT, including decreases of 400 MT), Mexico (1,500 MT), Taiwan (1,100 MT, including decreases of 100 MT), and Canada (800 MT). Exports of 13,000 MT were down 15 percent from the previous week and 1 percent from the prior 4-week average. The destinations were primarily to Japan (3,700 MT), South Korea (3,500 MT), Mexico (1,500 MT), Taiwan (1,200 MT), and Hong Kong (1,200 MT). 

Pork: Net sales of 16,100 MT for 2026--a marketing year-low--were down 31 percent from the previous week and 50 percent from the prior 4-week average. Increases primarily for China (4,100 MT, including decreases of 100 MT), Mexico (4,100 MT, including decreases of 1,100 MT), Canada (2,300 MT, including decreases of 400 MT), Japan (2,300 MT, including decreases of 1,300 MT), and South Korea (1,500 MT, including decreases of 200 MT), were offset by reductions for the Philippines (100 MT), Costa Rica (100 MT), Nicaragua (100 MT), and Vietnam (100 MT). Exports of 30,000 MT were down 12 percent from the previous week and 9 percent from the prior 4-week average. The destinations were primarily to Mexico (12,900 MT), Japan (5,400 MT), China (3,300 MT), South Korea (2,200 MT), and Colombia (2,100 MT).

USDA expands New World Screwworm defense effort as case count remains stable

$105 million in approved projects signals long-term commitment to prevention, detection, and sterile fly technology

USDA is significantly broadening its defense strategy against New World Screwworm (NWS), approving 40 projects worth approximately $105 million aimed at strengthening surveillance, prevention, and response capabilities. The investment comes as the current outbreak situation remains relatively stable, with APHIS reporting 11 active cases, one inactive case, no detections in wild or feral animal populations, and no positive fly-trap captures. Link for details. 

The approved projects reflect USDA’s recognition that keeping NWS from becoming established in US livestock populations requires a multi-layered approach rather than relying solely on traditional sterile insect techniques. The agency reviewed 226 applications seeking roughly $664 million in funding before selecting projects it said demonstrated strong scientific merit, innovation, and the greatest potential impact on NWS prevention and response efforts.

Among the projects are initiatives to expand the use of drones for surveillance, improve wound-detection capabilities in livestock, develop more efficient sterile fly production techniques, enhance monitoring systems, and evaluate low-level insecticide applications as preventative tools. The breadth of the portfolio suggests USDA is pursuing both immediate operational improvements and longer-term technological advances that could strengthen the nation's biosecurity posture against future incursions.

The timing is significant. While the current case count remains contained, federal officials remain concerned about the threat posed by NWS's continued presence in Mexico and the potential economic damage that could result if the parasite became established north of the border. The pest's larvae feed on living tissue, creating severe animal health and livestock production losses.

The latest confirmed case occurred June 12 in a sheep in Sutton County, Texas. That case is now listed as inactive, indicating treatment and monitoring efforts have been successful. Importantly, APHIS continues to report no evidence of spread into wildlife populations, a key indicator that eradication efforts are working. Wild and feral animal infections would significantly complicate containment efforts because they are far more difficult to locate and treat than domestic livestock.

The absence of fly-trap detections also provides reassurance that there is currently no evidence of an established breeding population. USDA officials have repeatedly emphasized that rapid detection and response remain critical because the economic consequences of a widespread NWS outbreak could be severe for the cattle industry, particularly at a time when the US herd is already at historically low levels.

The newly approved projects also complement broader USDA efforts to expand sterile fly production capacity. Industry groups, including the cattle sector, have increasingly argued that North America needs additional sterile fly production facilities and improved deployment capabilities to ensure sufficient capacity should a larger outbreak emerge.

From a policy perspective, the funding announcement demonstrates that USDA is moving beyond emergency response and investing in a more permanent defensive infrastructure. The focus on advanced technologies such as drones, enhanced diagnostics, and improved sterile insect production suggests the department is preparing for a sustained biosecurity challenge rather than treating the current outbreak as a short-term event.

For livestock producers, the stable case count is encouraging, but USDA's funding decisions underscore that federal officials continue to view New World screwworm as one of the most significant animal health threats facing the US cattle industry. The combination of contained infections, no wildlife involvement, and major investments in prevention and detection provides a favorable outlook for now, but the scale of the new funding initiative signals that USDA is preparing for a prolonged fight to keep the pest from gaining a foothold in the United States.

EU and Brazil seek compromise on beef ban ahead of Mercosur trade deal

Lula presses European leaders as September import ban threatens Brazilian beef exports

As G7 leaders gathered in Évian-les-Bains, France, European and Brazilian officials signaled they are seeking a negotiated solution to the European Union’s planned September ban on Brazilian beef imports, a dispute that threatens to complicate implementation of the long-awaited Mercosur-EU trade agreement.

European Council President Antonio Costa said discussions between the European Commission and Brazil are ongoing and described the talks as a “constructive way of solving problems.” The dispute centers on EU claims that Brazil has failed to comply with European standards governing antimicrobial use in livestock production. As a result, the EU recently removed Brazil from its list of approved beef-exporting countries, effectively blocking Brazilian shipments to the bloc beginning in September.

For Brazil, the issue carries both economic and political significance. President Luiz Inácio Lula da Silva is expected to raise the matter directly with European Commission President Ursula von der Leyen during the summit. Brazilian officials view the restriction as particularly problematic because it emerged only weeks after provisional implementation of the Mercosur-EU trade accord, a deal that took more than two decades to negotiate.

The controversy underscores one of the largest unresolved challenges facing agricultural trade agreements: differing sanitary and production standards. While the EU insists the measure is based on food safety and animal health requirements, Brazilian producers and meatpackers argue the restrictions could become a form of non-tariff trade barrier that limits market access despite formal tariff reductions.

The timing is especially sensitive because Brazil is the world’s largest beef exporter, and Europe remains an important premium-value destination. A prolonged dispute could encourage Brazil to redirect additional supplies toward Asia and the Middle East while intensifying pressure on Mercosur partners to seek concessions from Brussels.

The negotiations also come as European livestock producers have increasingly pushed for stricter import standards. Farm groups across Europe have argued that imported beef should meet the same production requirements imposed on EU producers, particularly regarding antimicrobial use and sustainability standards. That political pressure is likely to limit the European Commission’s flexibility, even as Brussels seeks to preserve momentum behind the Mercosur agreement.

Beyond the beef dispute, the G7 summit is focused heavily on geopolitical issues, including the reopening of the Strait of Hormuz following the US-Iran ceasefire agreement, the war in Ukraine, global economic imbalances, critical minerals, and artificial intelligence governance. However, for agricultural markets, the Brazil-EU beef dispute remains one of the most closely watched trade developments because it could become an early test of how aggressively the EU intends to enforce production-based import standards under future trade arrangements.

For global beef markets, a negotiated settlement would likely prevent disruption to Brazilian export flows and help preserve confidence in the Mercosur/EU accord. Failure to reach an agreement, however, could deepen trade tensions and reinforce concerns among agricultural exporters that sanitary and environmental regulations are increasingly becoming the primary battleground in international agricultural trade.

JBS to shut Pennsylvania meat plant

JBS, the world’s largest meatpacker and the largest US beef processor by volume, announced Friday it plans to close a plant in Souderton, Pennsylvania, in response to short cattle supplies. Reports said the single-shift plant employs about 1,700 people and can slaughter roughly 2,000 cattle a day – making it one of the company’s smaller facilities. JBS is also planning to close a smaller meat packaging plant in Memphis that employs about 200 people, the report said, while maintaining plans for a $150 million investment in its much larger Cactus, Texas, beef plant.

Import surge fuels questions about new grinding capacity and the future of US beef

Tight US cattle supplies are driving record beef imports, but industry fundamentals do not yet support claims of a wholesale replacement of domestic production

A growing debate within the cattle industry centers on whether expanding beef grinding capacity in Texas and other regions signals a long-term shift away from US cattle production and toward imported beef supplies. The discussion has intensified as beef imports climb to record levels amid the smallest US cattle herd in more than 70 years.

The concern stems from a simple reality: US beef processors are increasingly relying on imported lean beef trimmings to meet strong consumer demand for ground beef. USDA forecasts beef imports will remain elevated in 2026 as domestic cattle numbers remain historically tight. Imported lean beef, primarily sourced from countries such as Australia, Brazil, New Zealand and Uruguay, is commonly blended with fattier domestic trimmings to produce ground beef sold in supermarkets and restaurants.

Industry participants have pointed to investments in grinding and processing capacity, particularly in Texas, as evidence that packers are preparing for a future with greater dependence on imported product. The most visible example is JBS' $150 million expansion of its Cactus, Texas, beef facility, which includes a larger ground beef operation. The project reflects the industry's effort to capture value from growing demand for hamburger and other ground beef products while dealing with a shrinking domestic cattle supply.

However, the available evidence does not support claims that a network of new grinding facilities is being constructed specifically to handle an anticipated flood of imported beef during the second half of the year. While processing investments are occurring, they appear to be part of broader efforts to improve efficiency and increase value-added production rather than a wholesale restructuring of the beef supply chain.

The economic argument by some that imported beef costs roughly half as much as US beef also oversimplifies a more complex market. Production costs in some exporting countries are significantly lower than in the United States, giving foreign suppliers a competitive advantage. Yet imported beef prices have remained relatively strong due to robust global demand, and imported lean trimmings are not direct substitutes for the high-quality fed beef produced by US cattle feeders.

In fact, current cattle prices tell a very different story from the industry's collapse narrative. Fed cattle and feeder cattle continue to trade at historically high levels because supplies are so tight. If imported beef were truly replacing domestic cattle production on a large scale, market signals would likely show weaker cattle prices rather than record or near-record values.

What is occurring instead is a growing bifurcation within the beef market. Imports are filling a critical shortage in the lean beef segment used for hamburger production, while domestic cattle producers continue to supply the premium grain-fed beef products that dominate US retail and restaurant markets. The challenge for packers is that fewer cattle available for slaughter means higher procurement costs and narrower margins, a dynamic that has already contributed to plant closures and capacity reductions across the industry.

The larger risk for the US beef sector is not that imported beef will eliminate the need for domestic cattle or packing plants, but that prolonged herd liquidation and high production costs could gradually shift a larger share of the ground beef market to foreign suppliers. Unless US cattle numbers begin rebuilding in the coming years, imports are likely to remain an increasingly important component of the nation's beef supply.

For now, however, reports of the demise of the US beef industry appear overstated. Record cattle prices, strong consumer demand and continued investments in processing infrastructure suggest the industry is adapting to a historic cattle shortage rather than being replaced by imports. The real question is whether US producers can rebuild the cow herd quickly enough to recapture market share before imported beef becomes a more permanent fixture in the American meat case.

USDA issues directive to restore grazing on national forest lands

US Secretary of Agriculture Brooke L. Rollins last week announced the distribution of a comprehensive directive to all US Forest Service employees from the Office of the Under Secretary for Natural Resources and Environment (NRE). These actions advance implementation of the Advancing Grazing on Forest Service and Bureau of Land Management (BLM) Lands Memorandum of Understanding (MOU) and the USDA–Department of the Interior Grazing Action Plan, delivering on the Trump Administration’s commitment to strengthen American ranching, restore multiple-use management on federal lands, and combat regulatory lawfare against producers. 

“America’s ranchers are an integral component of our rural economies, our food security, and our national strength,” said Secretary Rollins. “For too long, bureaucratic overreach and activist-driven lawfare have undermined the multiple-use mandate of our National Forests and Grasslands. Today, we are empowering line officers with clear direction and reaffirming grazing as an essential tool for healthy landscapes and vibrant rural communities.”

Weekly USDA dairy report

CME GROUP CASH MARKETS (6/12/26) BUTTER: Grade AA closed at $1.6675. The weekly average for Grade AA is $1.6665 (-0.0260). CHEESE: Barrels closed at $1.4200 and 40# blocks at $1.4875. The weekly average for barrels is $1.4540 (+0.140) and blocks $1.4815 (+0.0075). NONFAT DRY MILK: Grade A closed at $1.7850. The weekly average for Grade A is $1.8695 (-0.2465). DRY WHEY: Extra grade dry whey closed at $0.6800. The weekly average for dry whey is $0.6770 (-0.0005). 

BUTTER HIGHLIGHTS: Above-normal temperatures from New York through the Mid-Atlantic are accelerating the end of the spring flush and adding early heat stress. Salted butter supplies are plentiful, cream continues shifting more into seasonal ice-cream production, and butter spot trading remains active with a steady tone. In the Central region, milk and cream production remains healthy, though rising temperatures are a growing concern. Strong Class II and III cream demand continue to limit spot cream availability for Class IV use, and some plants are bringing in outside cream to keep churns full. Domestic sales of 80 percent butter are steady, while export interest in 82 percent butter remains due to competitive pricing. In the Western region, milk output continues to meet cream needs, and intermittent Class II downtime is adding modest spot cream availability. Butter manufacturers report light demand, while churns remain active on contracted cream supplies through Week 24. Inventories are steady to building, domestic demand is steady, international interest is mixed, and spot loads of 80 percent and 82 percent butterfat butter remain available. 

CHEESE HIGHLIGHTS: Eastern milk supplies are tight for cheese production as heat accelerates the end of the spring flush and lowers cheese milk components. A major plant returning to five-day operation has reduced Class III milk availability. Condensed skim is tight, export demand exceeds supply, and inventories are falling. Central region milk supplies for Class III are balanced. Spot milk movement has increased due to downtime, with prices of $7 under to flat Class. Forecasted cooler weather may boost milk volumes. Cheesemakers run busy schedules, curds are steady, and export demand is strong. Western cheesemakers report adequate milk despite seasonally lighter output. Spot milk is more available due to downtime at Class II/IV facilities. Domestic and international demand is steady, and retail is outpacing food service. Inventories are somewhat tight, though spot cheese loads are available. 

FLUID MILK HIGHLIGHTS: Farm milk output is tightening in the East as the flush tapers and unseasonably high temperatures add stress to cows and pastures. Milk production is steady in the Central region and ranges from steady to lighter across the West, where volumes remain generally adequate to meet processing needs. Class II cream demand continues to strengthen, driven by seasonal ice cream production. Eastern and Central plants are purchasing spot loads from the Midwest and West, while Western cream supplies are meeting regional needs. Class III demand is softening in the East, whereas Central manufacturers report steady to strong demand supported by contracted milk volumes. Western Class III demand remains steady. Class IV butter inventories are considered plentiful, with steady demand in the East and Central regions and mixed demand in the West. Condensed skim supplies remain tight in both the Northeast and Central regions but are unchanged in the West. All Class cream multiples range from 1.15 – 1.44 in the East, 1.05 – 1.35 in the Midwest, and 1.00 – 1.24 in the West. 

DRY PRODUCTS HIGHLIGHTS: Nonfat dry milk prices declined sharply for low/medium heat across all regions. In the Central and East regions, high heat prices also fell significantly at the top of the range but held steady at the lower end. High heat prices in the West edged lower throughout the range. Dry buttermilk prices moved lower across the range in the Central and East regions, while the West remained unchanged. Dry whey prices were steady in the Central and East regions but softened in the West. Lactose prices eased slightly at the bottom of the range and were steady elsewhere. Whey protein concentrate (WPC) 34% prices were mostly steady, with some downward movement at the top of the range. Dry whole milk prices strengthened at the lower end of the range and held firm at the upper end. Acid and rennet casein prices were unchanged. 

ORGANIC DAIRY MARKET NEWS: The Transition to Organic Partnership Program (TOPP) was formed through cooperative agreements between the USDA and non-profit organizations to provide technical assistance and support for transitioning and existing organic farmers. A calendar of events held by partner organizations can be found at the following link: https://www.organictransition.org/events/. The Foreign Agricultural Service (FAS) recently released organic milk data for April 2026. Organic milk exports were 368,000 liters, down 27.9 percent from the month prior, and down 26.7 percent from April 2025. Exports of organic milk from the start of the year through April were 1,549,658 liters, down 10.4 percent, compared to the same time last year.