Weekly protein digest: USDA expands screwworm defense along Texas border, citing livestock risk
USDA is shifting sterile fly operations closer to the US-Mexico border as a precaution against New World screwworm, underscoring heightened biosecurity vigilance across cattle farms
7 February 2026
10 minute read
By: China lowers final dairy tariff levels on EU imports, but trade tensions persist
Beijing’s anti-subsidy duties ease from provisional rates, though Brussels warns measures remain unjustified
The European Commission said it has received China’s final calculations for proposed anti-subsidy duties on European Union dairy products, with an effective date of Feb. 21. The duties — set by China’s Ministry of Commerce of the People's Republic of China — are expected to range from 7.4% to 11.4%, according to reports, significantly lower than the provisional tariffs of 21.9% to 42.7% announced in December.
However, the Commission said it is still reviewing the notification and declined to comment substantively, noting that the measures are not yet formally final. Brussels reiterated its objections, saying the proposed duties are based on “questionable allegations and insufficient evidence,” and therefore unjustified.
The dairy tariffs are widely viewed as a retaliatory move following the EU’s decision to impose duties on Chinese electric vehicle imports. While the reduced tariff levels soften the immediate blow compared with earlier estimates, they are still expected to weigh on EU dairy exports into the Chinese market and underscore ongoing trade frictions between Brussels and Beijing.
USDA semiannual US cattle inventory report shows shrinking supply — lowest in 75 years
There were 86.2 million head of cattle and calves on US farms as of Jan. 1, according to Friday afternoon’s twice-yearly cattle inventory report published by USDA’s National Agricultural Statistics Service (NASS). That’s the lowest level since 1951. Other key findings in the report saw that of the 86.2 million head inventory, all cows and heifers that have calved totaled 37.2 million. There are 27.6 million beef cows in the US as of Jan. 1, down 1% from last year at the same time. The number of milk cows in the US increased to 9.57 million. The US calf crop was estimated at 32.9 million head, down 2% from previous year. All cattle on feed were at 13.8 million head, down 3% from Jan. 1, 2025. NASS surveyed approximately 35,000 operators across the nation during the first half of January.
USDA shifts sterile fly operations to reinforce New World Screwworm defense
Expanded dispersal zone will extend into South Texas as APHIS strengthens border buffer against northward spread
USDA’s Animal and Plant Health Inspection Service is shifting its massive sterile fly dispersal campaign — releasing roughly 100 million sterile flies per week — to reinforce defenses against the northward spread of New World screwworm (NWS). Aircraft and sterile insects will be reallocated to focus more heavily along the US/Mexico border, with the new dispersal “polygon” extending about 50 miles into Texas along the border with Tamaulipas, Mexico.
USDA officials emphasized the move is precautionary. While the northernmost confirmed NWS case in Mexico remains roughly 200 miles from the US border, infections have continued to spread within Tamaulipas and farther south. At the direction of USDA Secretary Brooke Rollins, APHIS is proactively adjusting its sterile insect buffer to prevent the pest from reaching US territory.
How the sterile fly strategy works. Sterile insect technique is a core tool in NWS eradication. Female screwworm flies mate only once; if they mate with a sterile male, their eggs do not hatch. By releasing sterile flies just north of active outbreak zones, USDA aims to create a biological barrier that halts reproduction if the pest moves north.
To support surveillance, sterile flies will be marked with a fluorescent dye visible under UV light — and sometimes to the naked eye — allowing inspectors to quickly distinguish sterile insects from wild screwworms if flies are caught in Texas traps.
Import controls and recent interception. USDA highlighted the importance of long-standing import protocols after APHIS inspectors identified screwworm larvae in an open wound on a horse imported from Argentina at a Florida quarantine facility. The animal was immediately treated and isolated, and laboratory testing confirmed NWS larvae. Officials stressed the case was unrelated to the Mexico outbreak but demonstrated that import safeguards are working as designed.
Surveillance results to date. APHIS continues intensive monitoring along the Southern border, including 121 NWS-specific traps in high-risk areas and thousands of additional insect traps. More than 42,000 flies have been analyzed so far, with no NWS detections in the US Wildlife inspections covering more than 9,300 animals across 39 species and 131 counties have also found no signs of infestation.
Guidance for animal owners. Despite the absence of confirmed US cases, USDA is urging livestock owners and pet owners to remain vigilant. Signs of NWS include worsening open wounds, visible maggots or eggs around body openings, and unusual discomfort. Suspected cases should be reported immediately to state animal health officials or USDA veterinarians. While rare in humans, anyone who suspects screwworm exposure is advised to seek prompt medical attention.
Texas governor issues disaster declaration on New World Screwworm
Texas Governor Greg Abbott late Thursday issued a statewide disaster declaration to “better equip the Texas New World Screwworm Response Team to prevent the potential spread of the NWS fly into Texas and to better protect livestock and wildlife,” said a press release from the governor. "Although the New World screwworm fly is not yet present in Texas or the US, its northward spread from Mexico toward the US southern border poses a serious threat to Texas' livestock industry and wildlife," said Abbott. "State law authorizes me to act to prevent a threat of infestation that could cause severe damage to Texas property, and I will not wait for such harm to reach our livestock and wildlife,” Abbott said via the press release.
Weekly USDA US beef, pork export sales
Beef: Net US sales of 19,700 MT for 2026 were up 17 percent from the previous week, but down 19 percent from the prior 4-week average. Increases were primarily for South Korea (7,600 MT, including decreases of 200 MT), Japan (6,300 MT, including decreases of 200 MT), Taiwan (1,500 MT, including decreases of 100 MT), Mexico (1,100 MT, including decreases of 200 MT), and Hong Kong (900 MT, including decreases of 100 MT). Exports of 13,000 MT were up 3 percent from the previous week, but down 2 percent from the prior 4-week average. The destinations were primarily to South Korea (4,400 MT), Japan (3,800 MT), Mexico (1,400 MT), Taiwan (1,300 MT), and Hong Kong (700 MT).
Pork: Net US sales of 35,100 MT for 2026 were down 37 percent from the previous week and 48 percent from the prior 4-year average. Increases primarily for Mexico (13,800 MT, including decreases of 8,100 MT), China (5,200 MT, including decreases of 300 MT), Canada (4,700 MT, including decreases of 300 MT), Japan (4,000 MT, including decreases of 2,900 MT), and South Korea (2,600 MT, including decrease of 1,400 MT). Exports of 37,600 MT were up 5 percent from the previous week and 6 percent from the prior 4-week average. The destinations were primarily to Mexico (16,900 MT), Japan (4,300 MT), South Korea (3,800 MT), Canada (3,300 MT), and China (3,000 MT).
Weekly USDA dairy report
CME GROUP CASH MARKETS (1/30) BUTTER: Grade AA closed at $1.5800. The weekly average for Grade AA is $1.5570 (+0.0807). CHEESE: Barrels closed at $1.3900 and 40# blocks at $1.3625. The weekly average for barrels is $1.4280 (+0.0699) and blocks $1.3940 (+0.0440). NONFAT DRY MILK: Grade A closed at $1.4600. The weekly average for Grade A is $1.3895 (+0.1076). DRY WHEY: Extra grade dry whey closed at $0.7500. The weekly average for dry whey is $0.7450 (+0.0100).
BUTTER HIGHLIGHTS: In the West region, domestic butter demand is strong. In the Central and East regions, domestic butter demand is steady. 80 percent butterfat butter loads are widely available throughout the country. 82 percent butterfat butter loads remain tight, despite contacts reporting moderate to strong demand from international buyers. Cream loads are readily available, though severe weather in some parts of the country is negatively impacting the movement of loads. Butter production schedules vary from lighter to steady. Bulk butter overages range from 2 cents below to 5 cents above market across all regions.
CHEESE HIGHLIGHTS: In the East region, severe winter weather disrupted operations, causing plant downtime and transportation challenges. Central region milk output remains strong. Storms reduced spot milk demand and slowed production early in the week. Retail cheese demand is strong; food service sales are weak. Spot cheese loads are available. Cheese manufacturers in the West region report milk volumes are meeting demand. Spot milk demand is mixed. Production is steady, with some plants prioritizing contractual demand. Domestic demand is moderate; export demand is stronger. Spot cheese availability ranges from stable to snug.
FLUID MILK HIGHLIGHTS: Milk production is steady to strong nationwide, but severe weather disrupted production schedules throughout much of the country this week. Some contacts reported concern the winter storm will impact milk production in the coming weeks. Bottling demand slowed this week with many educational institutions closed due to the weather, but spot milk availability grew as a result. Class II demand was lighter this week, though production schedules did increase as the week progressed. Class III production started light at the beginning of the week, but contacts indicate plants will resume busy production schedules to fulfill orders. Class III spot milk prices ranged from $5-under to $1-under Class. Class IV production was mixed this week. In some regions, butter plants were taking extra loads of milk that were originally destined for plants that shut down during the storm. Butter producers kept churns operating on a full schedule, taking advantage of higher prices this week. Spot loads of cream are readily available nationwide. Condensed skim was slow at the beginning of the week but picked up as the week progressed. Cream multiples for all Classes range:1.06– 1.24 in the East; 0.90– 1.20 in the Midwest; 0.80 1.16 in the West.
DRY PRODUCTS HIGHLIGHTS: Nonfat dry milk (NDM) prices strengthened again this week, especially at the high end of the range for the West region’s low/medium heat NDM. Spot inventories remain tight, domestic demand is steady, and strong international interest is reported. Dry buttermilk prices increased after last week’s quiet period, driven by higher demand and steady production. The largest gains were seen at both ends of the mostly price range. Dry whey markets were mixed: unchanged in the Central region price range, but up in the mostly price range; modest gains in the West; and a slight decline at high end, but steady at low end in the Northeast. Lactose prices were mostly unchanged, with a slight increase at the low end of the price range. Whey protein concentrate 34% prices dropped at both ends of the range, while the mostly price range held firm. Dry whole milk prices saw good gains at both ends of the range, supported by upward movement in the butter and nonfat dry milk markets. Acid and rennet casein prices were unchanged.
INTERNATIONAL DAIRY MARKET NEWS: WEST EUROPE: Dairy Farmers in the UK voiced concern after some processors advised producers to dispose of surplus milk, highlighting ongoing supply imbalances and weakening demand conditions. Farmers expressed frustration over the excess volumes, as market pressures continue to limit near-term price support and strain producer confidence.
EAST EUROPE: Rising dairy consumption across Asia is creating new growth opportunities for Poland's dairy sector, with expanding demand in markets such as South Korea and Vietnam supporting stronger export potential and reinforcing Poland's position as a leading EU milk supplier.
OCEANIA: AUSTRALIA: Milk production data from Australia for December 2025 were recently released by Dairy Australia. The data show total December 2025 milk production was 814.1 million liters, up 14.7 million liters (1.8 percent) year over year. Milk production in Victoria, Australia's largest milk-producing state, was up 1.6 percent year over year.
NEW ZEALAND: Milk production data from New Zealand for December 2025 were recently released. These data show total December 2025 production was 2.71 million metric tons, up 2.5 percent compared to a year earlier. During December 2025, total milk solids production increased by 3.1 percent from the previous year to 235.4 million kilograms.
SOUTH AMERICA: South America milk production is strong. 2025 year over year milk production in Argentina grew by nearly double digit figures. South American stakeholders convey milk prices are trending in a bearish direction, which is weighing on profitability. Some sellers convey inflation during 2025 is keeping buyers more price sensitive so far in 2026.
DECEMBER COLD STORAGE REPORT (NASS): Total natural cheese stocks in refrigerated warehouses on December 31, 2025 were up 1 percent from the previous month and up 1 percent from December 31, 2024. Butter stocks were down 5 percent from last month and down 7 percent from a year ago.
DECEMBER MILK PRODUCTION (NASS): Milk production in the 24 major States during December totaled 18.8 billion pounds, up 4.6 percent from December 2024. November revised production, at 18.1 billion pounds, was up 4.7 percent from November 2024. The November revision represented an increase of 3 million pounds or less than 0.1 percent from last month's preliminary production estimate.
