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- South Africa’s canned fruit industry faces a lot of uncertainty as farmers focus on more diverse crops, including vegetables.
- This comes after Tiger Brands announced last year that it would close its Langeberg and Ashton canning factory in the Western Cape.
- The canning factory is the largest in Africa and one of only two in South Africa.
- For more stories, visit the Tech and Trends homepage.
The canned fruit industry in South Africa faces an uncertain future as farmers focus their attention on different crops following the closure of one of two of the largest canned fruit producers in South Africa.
Last year, Tiger Brands announced that the company would be closing its Langeberg and Ashton canning factory, one of the world’s biggest producers and exporters of canned fruit, procuring more than a 100,000 tonnes of fruit annually.
The decision to close comes after the company left its fruit business about two years ago, with plans to mostly focus on manufacturing and distribution of branded beverages and food.
According to CEO of the Canning Fruit Producers’ Association, Jacques Jordaan, fruit farmers have been left with many challenges which are likely to affect supply in the local canned fruit industry in the country.
Jordaan said having such a big producer close would leave farmers with one producer to work with, resulting in an oversupply.
READ MORE | Tiger Brands' closure of its canning factory puts 90,000 tons of peaches, apricots, pears at risk
“The uncertainty at this stage, for sure, is that there are only two canning factories specific for canning their fruit, and if you take half of two, you’ve got one, and there’s total oversupply, then you have problems.
“You can’t just run away. If you planted the fruit, you would probably sit for 30 years with the orchards. You can’t just pull it out,” he told News24.
SA canned fruit and international market share
Fruits that are typically canned in South Africa for the local and international market include peaches, pears, apricot, guavas, and mixed fruit.
With such a wide variety of fruit and its abundance in the county, Jordaan believes that companies need to retain the international market so they don’t lose to other major canning countries such as Greece.
“Internationally, South Africa is well known for its fruit. Its quality and the colours, the flavours, and the texture.
“No other county can compete with us. We’re spoilt mainly by good quality fruit, including canned fruit, and I think once you lose your market share internationally then that would become a problem,” Jordaan said.
Procurement
Last year Agri SA reported that about 160 producers had been in negotiations with Tiger Brands to procure the factory but required over R300 million to seal the deal in 60 days. No deal ever went through, and according to Jordaan, the factory is still on sale.
Jordaan said since hundreds of producers rely on the factory, the best thing right now is for it to be acquired by a responsible owner.
He said:
"It’s been around for about 70 years and we need to fight to keep it going. All parties should try and stand strong, get through this, get a responsible new owner and keep [the] market share internationally.
“I think there are other industries in the region that usually benefit from a big factory like this so everybody wants something positive to happen,” he said.
On 30 May 2023, the food and beverages company announced that operations at its Langeberg and Ashton canning factory would be extended for the 2023/2024 season and that a due diligence exercise is currently underway as part of the sale process.
"The business will continue in its current form for the forthcoming season while we continue to assess all options to enable the continued operation of the Langeberg & Ashton Foods business in a sustainable manner in the interest of all stakeholders, including our employees, suppliers and the surrounding community," according to Tiger Brands.
