Potential NWS Case in Texas Under Investigation

Goldman Sachs analyzes the potential impact of a New World Screwworm (NWS) detection in Texas on the U.S. protein industry. The report highlights risks to beef supply chains and packer margins, while noting potential benefits for South American exporters like Minerva.

Key Takeaways

• 1.The USDA is investigating a potential case of New World Screwworm (NWS) in South Texas, a parasitic disease eradicated from the U.S. in the 1960s.
• 2.Texas is the most critical state for the U.S. beef industry, holding 14% of the national cattle herd (12.1M head).
• 3.Confirmation of NWS could further pressure the U.S. cattle herd downcycle, increase costs for packers, and shift consumer demand toward chicken.

Table of Contents

• The news
• Implications for the U.S. beef industry
• Read-across to our coverage
• Market reaction
• Disclosure Appendix
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures