Call to investigate factory shutdown in one of South Africa’s richest small towns

The Freedom Front Plus (VF Plus) has approached the Competition Commission to investigate the potential closure of a fruit processing plant in Tulbagh in the Western Cape.

The canning factory, now owned by Premier Foods, is at risk of closure, which could affect 3,000 workers.

Premier took control of the factory after it completed the acquisition of Rhodes Food Group in the 2025/26 financial year.

Built in the 1940s, this plant processes high-yield peach, pear, and apricot harvests from the Western Cape’s fertile Witzenberg region.

Since its inception, the factory has been an export engine, with the vast majority of its products exported to Europe and North America.

Earlier this year, Premier announced plans to shut down the factory, citing it as no longer financially sustainable.

This decision has come under fire, with trade union Solidarity having raised concerns about its potential impact on Tulbagh’s economy and workers.

Now, the VF Plus has joined calls for Premier to reconsider its decision to shutter the factory.

On Friday, 21 August, VF Plus MP Johnny Steenkamp announced that the party had formally approached the Competition Commission to investigate the matter.

“This step does not aim to undermine the mediation process already underway between Premier Foods and stakeholders such as workers and producers,” Steenkamp said. 

“It is, however, an additional step to ensure that the far-reaching consequences of the intended closure are thoroughly investigated and considered.”

Steenkamp pointed out that the closure would not only affect Premier but also its employees. “It could also deal a serious blow to the plant’s approximately 200 fruit producers,” he said. 

“Most of these producers have already concluded three-year contracts for delivering fruits and have, consequently, incurred related costs.”

Therefore, the VF Plus requested that the competition watchdog determine whether the plant’s closure and the termination of existing contracts have any competition-related implications.

If that is the case, the VF Plus requested that the Competition Commission urgently investigate the possible consequences.

“Premier Foods’ decision should also be seen in light of the broader economic context,” Steenkamp said. 

“The closure of such a large processing plant could severely restrict producers’ access to markets and place thousands of jobs at risk.”

“The Freedom Front Plus calls on the Competition Commission to urgently probe the matter and involve all relevant parties before an irreversible decision is taken.”