Tulbagh cannery closure threatens thousands of jobs, fruit growers

In the wake of looming job losses and impact on the economy, AgriSA, Agri Western Cape and the Canning Fruit Producers Association (CFPA) have called for urgent engagement with Premier Group following the announced intention to cease soft-fruit canning operations at the Tulbagh facility ahead of the 2026/27 harvest.

The organisations are calling on Premier to honour existing commitments to producers and refrain from taking irreversible steps that could undermine the future of the facility and broader fruit industry.

The Tulbagh cannery processes approximately 55 000 to 60 000 tonnes of fruit annually and purchases around R300 million worth of produce from farmers each year. More than 200 producers, approximately 2 000 hectares of orchards and thousands of permanent and seasonal jobs are connected to the facility and the wider value chain it supports.

Growers, communities face financial ruin

Fruit orchards represent long-term investments, typically established over horizons of 20 to 30 years. Producers plan production years and cannot redirect substantial volumes of highly perishable fruit only months before harvest without potentially severe financial consequences.

The organisations stated that they recognise that businesses across South Africa’s agricultural and food-processing sectors are operating under difficult market conditions.

However, the scale and timing of the proposed closure require a process that properly considers the total impact. Of particular concern are existing agreements between producers and RFG Foods.

“The priority should be to bring all parties around the table while there is still an opportunity to protect the productive capacity of the region,” said AgriSA chief executive officer, Johann Kotzé.

Jannie Strydom, Agri Western Cape chief executive officer, added that this was not simply about one factory.

“It concerns farmers who have invested over decades, workers and communities whose livelihoods depend on this value chain, and productive agricultural capacity that cannot easily be recreated once it has been lost.

“We recognise that commercial realities have to be confronted. But before irreversible decisions are implemented, every credible commercial alternative should be properly explored. Our request is straightforward: honour existing commitments, preserve the opportunity to negotiate, and give the parties the time and space required to find a workable solution,” he said.

Chief executive officer of CFPA, Jacques Jordaan, said producers remain willing to engage constructively but require certainty regarding their existing contractual arrangements.

“Our producers have made long-term investments and production decisions on the basis of commitments extending beyond a single season. With the next harvest approaching, uncertainty of this magnitude has profound consequences for farming businesses and the communities that depend upon them.

“We want to engage constructively with Premier and any other party capable of contributing to a sustainable solution. At the same time, producers’ contractual rights and legitimate interests must be respected,” he said.