The condition you are describing is commonly called hairy heel warts. The scientific name is papillomatous digital dermatitis (PDD). You are correct that most affected animals are dairy breeds and not beef breeds, but this doesn't mean beef cattle cannot become infected, as you have found out. The condition is caused by an unidentified spirochete, so it is infectious. The rear feet are the most commonly affected, with little to no swelling, in contrast to foot rot. The warts can infect the heels, between the toes or the dew claws, and even the front of the foot. Poor-draining lots, concrete, and unsanitary hoof-trimming equipment can all predispose to PDD.
Treatment
Treatment consists of cleaning the affected areas, trimming of the warts if they are large, and topical application of an antibiotic under a wrap. Animals need to be in a clean, dry area during treatment. Treat all feet of affected animals, not just the rear feet. Mix a 102.4-gram packet of Terramycin-343® powder from Pfizer into one gallon of water. Put this in a spray bottle and apply at the rate of 10 to 20 cc/foot for five to seven days. Apply to the heels and between the toes.
Week 2: continue daily treatment of all cows with visible lesions. Repeat the treatment in six to eight weeks if you see warts on other cattle in the herd.
You can make a foot bath by adding four grams of tetracycline to 25 gallons of water. The foot bath has to remain clean if it is going to be effective.
Control
Quarantine, examine, and treat new arrivals to the herd.
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