Woolworths to stop buying Tasmanian beef from 2027

Woolworths has confirmed it will stop buying Tasmanian beef at the end of the year.

The supermarket told suppliers that rising production and shipping costs were behind its decision.

A Woolworths spokesperson said it was mindful of the impact any changes would have on the Tasmanian beef farmers it bought from.

"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."

Woolworths said a small group of local farming partners supplied its Tasmanian beef.

It is understood that cattle are currently killed for Woolworths in Tasmania, carcasses are shipped to Victoria for processing, and the product is then shipped back across Bass Strait for Tasmanian shelves.

Liberal Senator Richard Colbeck blamed Labor’s lack of progress on the Tasmanian Freight Equalisation Scheme (TFES) review as a potential reason behind Woolworths’ decision.

The terms of reference for the review said the final report and recommendations were due to the government in the first half of 2026.

The government is now considering the report.

"Freight costs remain one of the biggest barriers facing Tasmanian producers,” Senator Colbeck said.

“When a major supermarket decides Tasmanian beef is too expensive to source because of the costs of moving products across Bass Strait, something is clearly wrong."

Senator Colbeck said Tasmanian producers and consumers would feel the decision.

"Tasmanians rightly expect to be able to walk into their local supermarket and buy Tasmanian produce."

"Instead, Labor's continued failure to tackle Tasmania's freight disadvantage is contributing to a situation where local food is disappearing from local shelves."

"The TFES exists because Tasmania faces unique transport challenges as an island state.

“But instead of providing certainty to farmers and businesses, Labor is sitting on a review that should have been released months ago."

Senator Colbeck said the Woolworths decision should be seen as a warning sign for the future of Tasmania's agricultural sector.

"Farmers are already dealing with rising input costs, labour shortages and increasing regulatory burdens.

“The last thing they need is a Federal Government dragging its feet on one of the biggest cost pressures facing the state."

He called on Labor to release the TFES review and commit to strengthening support for Tasmanian businesses moving goods across Bass Strait.

"Bass Strait is our highway to the mainland.

“If the Government fails to ensure Tasmania can compete on a level playing field, we'll see more businesses lose opportunities, more pressure on regional jobs and fewer Tasmanian products available to Tasmanian families."

Regional Development Assistant Minister Anthony Chisholm said Labor was backing businesses and communities by boosting the TFES payment by 25 per cent and undertaking a review.

“We committed to our review before the election to ensure TFES is fit-for-purpose and delivers for Tasmanians into the future,” Senator Chisholm said.

“That’s more than the Coalition ever did during a decade of power, where TFES rates were left to stagnate and didn’t keep pace with price increases.

“The independent reviewers have worked closely with businesses and industry across Tasmania throughout the comprehensive review process.

“The review report has been delivered to government, and we are now carefully considering the recommendations to ensure these schemes serve the best interests of Tasmanian businesses and communities.”