From 2027, Woolworths will no longer sell Tasmanian beef in the state. (ABC News: Billy Cooper)
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.
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.
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.
The commercial relationship between Woolworths and JBS Foods spans over several decades, and will come to an end in 2027. (ABC News: Laurissa Smith)
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.
Beef cattle farmer Jerrod Nichols says he has enjoyed having the security of a Woolworths contract. (ABC News: Rani Fletcher)
"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.
Jerrod Nichols says the decision by Woolworths end its contract with JBS Foods will be felt across the industry. (Alex Blucher)
