Five producers sue Premier to save fruit contracts
By the AFREEQUE newsroom, based on Bizcommunity
Five Western Cape fruit producers are taking Premier to court to force it to honour supply contracts for the 2026-2027 harvest. The Competition Commission also wants to overturn the 6.5 billion-rand merger with Rhodes Food Group, while a union is challenging the redundancies, according to BizCommunity.
Five fruit producers in the Western Cape have approached the province’s High Court to force Premier, a South African agribusiness group, to honour their supply contracts for the 2026-2027 harvest. They are seeking an interim order requiring the company to receive, sort and pay for their fruit, according to Bizcommunity.
The producers say Premier’s announced refusal to take fruit destined for the Tulbagh cannery could drive them into bankruptcy. The harvest is due to begin next month and the contracts must be submitted to arbitration, according to their application.
The South African Competition Commission, for its part, is asking the Competition Tribunal to withdraw approval for Premier’s acquisition of Rhodes Food Group (RFG), a deal valued at 6.5 billion rand. It argues that Premier had not disclosed its plan to close the cannery before the merger was approved, according to Bizcommunity. The acquisition was completed at the end of March and the closure was announced four months later.
The Agricultural, Food and Allied Democratic Workers’ Union (Afadwu), which represents food-sector workers, is challenging the consultation process over the redundancies as well as the voluntary severance agreements. It says thousands of seasonal workers may not receive compensation. Premier rejects the allegations of concealment and says the decision to close the site was taken after the acquisition because of deteriorating business conditions.
