Woolworths Stops Buying Tasmanian Beef From 2027, August 28

Woolworths Group Limited (WOW.AX) confirmed on August 28 it will stop buying Tasmanian beef from 2027, dealing a fresh blow to Australian cattle producers. The decision comes as US President Donald Trump eased tariffs on 300,000 metric tons of foreign beef imports starting September 1, a move that has already depressed cattle prices in Montana and beyond. Tasmanian farmers now face a two-front squeeze: loss of a major domestic buyer and increased competition from cheaper imported beef.

Woolworths pulls out of Tasmanian beef market

Woolworths confirmed it will no longer source beef from Tasmania in the state or the mainland from 2027 onward. The supermarket chain, Australia’s largest grocer with 1,087 Woolworths supermarkets, did not publicly state its reason for the shift. Tasmanian farmers have called the move a “kick in the guts” as it removes a key sales channel for local producers.

Trump’s beef tariff cut floods US market with foreign imports

On August 26, Trump signed a proclamation allowing 100,000 metric tons of imported lean ground beef per month for three months starting September 1, at tariffs 25% below market value. The move aims to reduce grocery prices but has infuriated American cattle ranchers. Montana rancher Tim Brunner, president of the Montana Cattlemen’s Association, said the decision was “absolutely idiotic.” Futures traders immediately lowered cattle price expectations, and rancher Chuck Kohlbeck lost $50 per head when he sold cattle days after the announcement.

Australian producers caught between two pressures

Australian beef producers now face simultaneous headwinds. Domestically, Woolworths confirmed it will no longer buy Tasmanian beef from 2027. Globally, Trump signed the proclamation temporarily lifting tariffs on foreign beef imports, which will likely depress global cattle prices and reduce export demand. The US imported about 250,000 metric tons of beef in June 2026, mostly lean ground beef for mixing with domestic supplies.

Broader farm crisis deepens in Australia and the US

Beef prices in the US are rising sharply despite Trump’s tariff cut. The USDA forecasts beef and veal prices will rise 9.8 percent in 2026, compared with just 2.5 percent for overall grocery prices. July beef prices were already 9.4 percent above a year earlier. In Australia, Tasmanian farmers now lose access to Woolworths’ scale just as international competition intensifies. Industry groups representing cattle producers in both countries have urged governments to reconsider tariff and sourcing policies.

Final Thoughts

Woolworths’ exit from Tasmanian beef and Trump’s foreign import surge create a pincer effect on Australian cattle producers. With Meyka grading WOW.AX a B- and the stock down 1.3% today, the retailer’s shift signals tighter margins on fresh food. For beef farmers, the outlook is bleak without domestic policy support.

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