'Kick in the guts': Woolworths confirms it will no longer buy Tasmanian beef

Woolworths confirms it will no longer buy Tasmanian beef from 2027 In short: Supermarket giant Woolworths will no longer sell Tasmanian beef in its stores from 2027, citing rising production and shipping costs across Bass Strait. Tasmanian farmer Jerrod Nichols says the contract with Woolworths provided security amid a changing market, and the loss is a "kick in the guts" for Tasmanian producers. What's next? Woolworths says it will work with those affected to support them through the transition period. Coles already does not buy Tasmanian beef. Tasmanian beef cattle farmers have been dealt a blow as Woolworths confirmed it would no longer sell Tasmanian beef in its stores. The supermarket giant cited rising production and shipping costs in its decision to stop buying the state's beef. The ABC understands Woolworths will exit its relationship with JBS Foods' Tasmanian abattoir at Longford from 2027. Scottsdale farmer Jerrod Nichols said he had supplied 40 cattle a fortnight to Woolworths over the past two years. He said having the security of a Woolworths contract had been "paramount" in investing in the industry amid a fluctuating market. However, he said he was not surprised by the decision. "Because there's no contract kill abattoir or service kill abattoir in Tasmania, they [Woolworths] were having to use JBS and, being a multinational company … they were charging them an exorbitant price to do that kill," Mr Nichols said. "And then to be shipping those bodies back to Victoria for processing, and bringing them back to Tasmania; I can see that model was probably unsustainable. "Everything that was used here in Tassie historically was killed here so it's the loss of jobs; it's another outlet that's gone from the state." Chair of TasFarmers' Livestock Council and Red Meat & Wool Committee George Shea said farmers were under pressure as a result of the cost-of-living crisis. "Farmers — especially in Tassie — always need to be proactive in marketing their stock and looking for their best options'" Mr Shea said. "Unfortunately, we don't have the same number of options as they do on the mainland … you just have to make the best of what you can. "It's always concerning when something changes in the market, but farmers are very adaptable and they'll adapt to this I'm sure." Mr Nichols said he met with Woolworths, and said freighting cattle across "the most expensive piece of water in the world" made up the bulk of the decision. "On top of that, you're being slugged a pretty high kill fee for the stock being killed; unfortunately it's another kick in the guts for Tasmanian producers," he said. "I'll have to talk to JBS or Greenham and see if they're prepared to lock in a fixed number so we can have the security going forward. "It simply sends a message that those people in charge of these big supermarkets do not consider the welfare and economic prosperity of regional Australia." A Woolworths spokesperson said its Tasmanian beef was supplied by a small group of local farming partners, and that it was "very mindful of the impact of any changes on them". "We are working directly with those affected to support them through this transition period into 2027," the spokesperson said. "Tasmania remains a key source of fresh produce for Woolworths and we continue to buy from local suppliers across a range of fresh produce categories." The ABC understands Woolworths will continue to buy Tasmanian beef until the end of 2026. The ABC understands fellow supermarket giant, Coles, does not buy Tasmanian beef, and neither Coles nor Woolworths buy Tasmanian pork. "Coles is proud to be one of the largest direct buyers of Tasmanian lamb, supporting local farmers and bringing high-quality Tasmanian lamb to customers in Tasmania and across the east coast", a Coles spokesperson said. "Through our GRAZE program, Tasmanian lamb supplies Coles customers for around nine months of the year, reflecting Tasmania's seasonal growing conditions." [Image text:] Hewrt EXTRA LEAN BEEF MINCE 500ge IDEALFOR TACOS OR CHILLICON CARNE HIGH 5%fat PROTEIN TYPICALLY 31.08.26 MESE BEFOR HEA053878 (01)09300633636005