Fruit farmers take Premier to court

Five Western Cape fruit producers have taken the Premier to court, seeking an interim order to compel the Premier to honour supply contracts for the 2026/27 harvest. The producers, who grow peaches and apricots, claim they may face ruin if the Premier refuses to buy their fruit as contracted. They are asking the court to direct the Premier to receive, grade, and pay for the fruit until their contracts are referred to arbitration.

The dispute arose after the Premier announced its plans to close its Fruit Products Western Cape cannery in Tulbagh. The Competition Commission had asked the Competition Tribunal to revoke its approval of the Premier’s acquisition of Rhodes Food Group (RFG) due to alleged failure to disclose plans for the closure. The cannery closure is facing opposition from workers and the Competition Commission, with the commission arguing that the closure would create a monopoly and result in job losses, reduced export opportunities, and the loss of a market for fruit producers.

The producers argue that the closure affects not only their farms but also their workers and the rural communities where they operate. They claim that alternative markets cannot absorb their volumes and that the voluntary severance agreements offered to affected employees are not sufficient to provide certainty about a buyer, delivery point, price, or payment date.

The Competition Tribunal approved the Premier’s acquisition of RFG in March 2026, subject to conditions that include protections against retrenchments resulting from the merger. The commission alleges that the Premier and RFG discussed the possible closure of the Tulbagh factory before approval but did not disclose this information during the merger review. The commission has requested an expedited hearing to preserve the cannery’s productive capacity while the dispute is being considered.