US Tariffs Contribute to Closure of South Africa's R1 Billion Tulbagh Cannery
- Premier Foods confirmed it is shutting down its Fruit Products Western Cape operation in Tulbagh after decades of canning exports
- The R1 billion facility, which traces its roots to the 1940s, exported around 90% of its canned fruit production to global markets
- A Section 189 consultation process has begun with employees as the broader Tulbagh community faces an uncertain future
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A century-old canning town in the Western Cape is bracing for job losses after Premier Foods announced the planned closure of its Fruit Products Western Cape (FPWC) operation in Tulbagh. The company confirmed it has begun a Section 189 consultation process with employees, citing a combination of declining global demand, pricing pressure, rising input costs, and the impact of United States tariffs as factors behind the decision.
According to Business Tech, the Tulbagh facility has deep roots in the region. It was founded in the 1940s as SA Preserving, set up to process the Western Cape's peach, pear, and apricot harvests for export markets in the aftermath of the Second World War. Over the decades, it grew into a major export hub under Del Monte Fruits South Africa, supplying markets across Europe and North America.
From R1 billion asset to unsustainable operation
Rhodes Food Group (RFG) acquired the business in 2010, renaming it Fruit Products Western Cape and pouring hundreds of millions of rands into upgrades. Automated canning lines, expanded cold storage, and production systems aligned with international food safety standards helped grow the total value of the facility and its assets to around R1 billion.
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The factory became part of Premier Foods earlier this year when the consumer goods group completed its R6.5 billion acquisition of RFG Holdings. By then, the warning signs were already visible. Before the takeover, RFG had flagged to investors that its international division was under pressure from US tariffs, which made its products less competitive globally. A worldwide oversupply of deciduous fruit had also pushed prices down. International revenue fell by 7.9% in the year to September 2025, with export volumes down 6.8%.
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Source: Briefly News
