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South Africa’s agricultural sector faces severe disruption following Premier Group’s announcement of its intention to halt soft-fruit canning operations at its Tulbagh facility prior to the 2026/27 harvest. The decision has triggered calls for immediate intervention from key industry bodies, including AgriSA, Agri Western Cape, and the Canning Fruit Producers Association (CFPA).
The Tulbagh cannery serves as a crucial cornerstone of the regional agricultural economy, processing between 55,000 and 60,000 tonnes of fruit annually. The facility injects approximately R300 million each year into the local economy through produce purchases, directly underpinning the livelihoods of over 200 producers and supporting roughly 2,000 hectares of orchards. Beyond the farm gate, thousands of permanent and seasonal workers across the supply chain risk severe financial hardship.
Industry representatives highlight that the timing of the proposed shutdown presents an immediate crisis for soft-fruit farmers. Orchards require long-term capital investments planned over 20- to 30-year horizons. Given the highly perishable nature of the produce and the minimal lead time before the upcoming harvest, redirecting such massive volumes to alternative buyers is economically and logistically unfeasible.
AgriSA Chief Executive Officer Johann Kotzé emphasized that the stakes extend far beyond the single processing plant, noting that the closure jeopardizes decades of invested capital, rural livelihoods, and productive infrastructure that cannot easily be rebuilt once dismantled.
While acknowledging the challenging macroeconomic and operational conditions confronting South Africa’s food-processing sector, agricultural leaders argue that commercial alternatives must be thoroughly explored before irreversible steps are taken. A major point of contention centres on pre-existing supply agreements between producers and RFG Foods, with industry leaders demanding that current contractual commitments and farmers’ rights be strictly honoured.
“Commercial realities have to be confronted,” stated Agri Western Cape Chief Executive Officer Jannie Strydom, while urging all stakeholders to reserve space for negotiation. CFPA CEO Jacques Jordaan echoed the need for contractual certainty, reiterating that producers remain committed to constructive engagement to safeguard the stability of their farming operations and host communities.
AgriSA, Agri Western Cape, and the CFPA are jointly appealing to Premier Group, government authorities, labour representatives, and prospective private investors to assemble at the negotiating table. The organizations maintain that a collaborative approach can still yield an orderly, commercially sustainable solution that preserves the region’s agricultural capacity before time runs out.
