The USDA has reversed its decision to resume imports of Mexican cattle before the year-end holidays due to the discovery of New World screwworm in Mexico, a flesh-eating pest that has led to the suspension of cattle shipments from Mexico. In order to resume imports, Mexico must set up USDA-approved holding pens for inspection and treatment of cattle for screwworm. The USDA has allocated $165 million to combat the pest in Mexico and Central America, using sterile flies to reduce the screwworm population and eventually eradicate it. The funds will also support the production and dispersal of these sterile flies in Central America. Some meat companies and cattle feeders are optimistically awaiting the resumption of trading, following drought conditions that have diminished the US herd size.