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

• Woolworths has announced it will stop selling Tasmanian beef by 2027, ending its long-term supply agreement with the JBS Foods abattoir in Longford.
• The decision was driven by rising production and shipping costs, specifically the unsustainable expense of transporting carcasses to Victoria for processing before returning them to Tasmania for sale.
• Local farmers expressed concern that the move eliminates a critical source of market security and will result in significant job losses within the state’s livestock industry.

Tasmanian beef producers are facing a significant setback following Woolworths’ decision to stop stocking locally sourced beef in its stores. The supermarket giant cited the escalating costs of production and shipping as the primary reasons for the shift, marking the end of an era for the state’s cattle industry.

The transition is expected to be finalized by 2027, when Woolworths officially exits its long-standing partnership with the JBS Foods abattoir in Longford. For local farmers like Jerrod Nichols, who has supplied 40 head of cattle every fortnight for the past two years, the news is a major blow. Nichols emphasized that the security of a Woolworths contract was essential for providing the stability needed to invest in his business amidst a volatile market.

While the news is disappointing, Nichols admitted the decision wasn’t entirely surprising given the logistical challenges involved. Because Tasmania lacks a dedicated contract or service-kill abattoir, Woolworths was forced to use JBS, which Nichols claimed charged “exorbitant” prices. This created a costly and inefficient cycle where carcasses were shipped to Victoria for processing and then transported back to Tasmania for retail—a model he described as fundamentally unsustainable.

Beyond the individual farmers, the move raises concerns about the broader economic impact on the region. The exit means the loss of local jobs and the disappearance of a major retail outlet for Tasmanian-grown meat. George Shea, chair of the TasFarmers’ Livestock Council and Red Meat & Wool Committee, noted that producers are already under immense pressure due to the ongoing cost-of-living crisis. He stressed that Tasmanian farmers must now be increasingly proactive in marketing their stock and seeking out new opportunities to safeguard their livelihoods.

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Original article and photo by "ABC News"