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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.
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In addition to the 4 550 workers at the factory, this decision will secure the livelihoods of the producers, more than 2 000 permanent workers, and countless seasonal workers who also depend on the facility. However, the threat has not passed since 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. The investment of R200 million to R300 million is a significant one, and the consortium seeking to save the factory will require support to secure this funding.
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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 rand in foreign currency. It sustains the Ashton community and if it were to close, approximately 300 producers would have no alternative market for their produce. The factory is also the biggest single source of income for the Langeberg Local 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 producers to ensure that the factory continues to operate for the sake of the communities of Ashton and Langeberg, and all the workers throughout the agricultural value chain. – Press release, Agri SA
