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

Woolworths, the supermarket giant, has announced it will discontinue its purchase of Tasmanian beef from 2027, citing increasing production and shipping costs across Bass Strait. This decision is a significant blow to Tasmanian beef cattle farmers, who have relied on the contract for stability in a fluctuating market. Tasmanian farmer Jerrod Nichols, who has supplied Woolworths with 40 cattle every fortnight over the past two years, emphasized the importance of the contract in investing in the industry.

The loss of this contract will result in job losses and the absence of a local kill abattoir, which has been deemed unsustainable due to the lack of alternatives in Tasmania. Woolworths stated they will work with affected farmers to support them through the transition period. Meanwhile, Coles, another major supermarket chain, already does not purchase Tasmanian beef.

Both Woolworths and Coles do not buy Tasmanian pork either. Despite the loss of the Woolworths contract, Tasmania remains a key source of fresh produce for the supermarket chain.