Agri SA welcomes the announcement that Tiger Brands will extend operations at its canning factory in Ashton, Western Cape. The decision is a vital reprieve for the sector and for the communities that rely on the facility for their livelihoods. It will also provide time for potential buyers to secure the necessary funding to save the factory.
In addition to the 4 550 workers at the factory, this decision will secure the livelihoods of the farmers, more than 2 000 permanent workers, and countless seasonal workers that also depend on the facility. But the threat is not over; this is a temporary reprieve, not a permanent solution as of yet.
It remains essential that the national and provincial governments support the producers and workers to find an effective solution. R200 – R300 million is a significant investment, and the consortium seeking to save the factory will require support to secure this funding.
The factory is the biggest in the country and its products occupy a niche position in the world market, bringing in hundreds of millions of Rands in foreign currency. It sustains the Ashton community and if it were to close, approximately 300 farmers would have no alternative market for their produce. The factory is also the biggest single source of income for the Langeberg Municipality. Saving the factory is therefore as important for the success of the Agriculture and Agro-Processing Masterplan as it is for the health of the Ashton and Western Cape economies.
In light of all that is at stake, Agri SA will continue to monitor the situation and provide support to the affected farmers to ensure that the factory continues to operate for the sake of the communities of Ashton and Langeberg, and for all the workers throughout the agricultural value chain.
For more information contact:
Christo van der Rheede, Executive Director, Agri SA
083 380 3492
