Woolworths to Stop Selling Tasmanian Beef

Tasmanian beef cattle farmers have been dealt a blow as Woolworths confirmed it would no longer sell Tasmanian beef in its stores.

Suppliers say 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.

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.

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.

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.

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."