American consumers already paying elevated prices for beef and coffee could face additional grocery store sticker shock this summer as ranchers battle the spread of the New World screwworm in Texas and other southern regions.

The screwworm, an invasive parasitic fly whose larvae burrow into the flesh of living animals, has raised concerns among cattle producers at a time when the U.S. cattle herd is already at its lowest level in 75 years. Economists say the pest could further tighten beef supplies and put upward pressure on prices.

Beef prices remain near historic highs despite a slight decline in ground beef prices during May. Consumer data show beef prices are still up nearly 13% from a year ago, following a sharp increase earlier this spring.

Industry officials stress that the screwworm poses no threat to the food supply and that ranchers have treatments available to protect livestock. The U.S. Department of Agriculture and cattle industry leaders say the pest can be managed through medications and the release of sterile male flies to prevent reproduction.

Even so, the outbreak is expected to increase costs for ranchers, who must spend more on veterinary care, monitoring, and labor. Those added expenses could eventually be passed on to consumers.

Economists note that beef prices were already under pressure from years of drought, shrinking cattle herds, and the suspension of cattle imports from Mexico. The screwworm outbreak threatens to add another supply challenge to an already strained market.

If beef prices continue to rise, consumers may increasingly shift toward lower-cost alternatives such as chicken and pork, a pattern commonly seen during periods of food inflation.

The latest concerns come as shoppers are already coping with the lingering effects of inflation on other grocery staples. Coffee prices, in particular, remain well above historical norms after weather-related crop problems and supply disruptions pushed costs sharply higher over the past two years.

Source: CNBC