South Africa’s fruit canning industry under threat as Premier Foods plans closure

The prospective closure of Premier Foods’ fruit processing plant in Tulbagh has raised concerns well beyond the loss of factory jobs. Producers warn it could leave hundreds of them scrambling for alternatives just months before the next harvest. Premier has begun a Section 189 consultation process on the proposed closure of Fruit Products Western Cape (FPWC).

The company says the business is no longer economically sustainable because of rising production costs and declining global demand. About 90% of the factory’s canned fruit is exported. The company responded to GroundUp with a statement saying it is working with farmers, government, the Competition Commission and other stakeholders to minimise the impact on employees, farmers and the Tulbagh community.

“Basically half the capacity for the industry will disappear,” said Jacques Jordaan, chief executive of the Canning Fruit Producers’ Association (CFPA). According to Jordaan, South Africa has two main canning facilities: the FPWC plant in Tulbagh and Langeberg Foods in Ashton. Closing Tulbagh would remove almost half of the country’s canning capacity.

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The announcement comes shortly before the deciduous fruit harvesting season begins in November and producers have already incurred most of their annual production costs – pruning, fertilising, irrigating and controlling pests. Jordaan says between 200 and 220 producers supply the Tulbagh factory, many producing fruit varieties specifically bred for canning rather than the long-shelf-life varieties required for the fresh export market. Without the canning facility, producers will have to remove orchards and invest in alternative crops and in new packhouses and distribution infrastructure.

The association says producers operate under rolling, long-term supply agreements that provide for a two-year notice period, allowing time to adapt if processing capacity changes. In a letter to producers, dated 29 July, the company confirmed it would pay outstanding balancing payments (“agterskotte”) for fruit supplied during the 2025/26 season at the end of October, in accordance with existing contracts.

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