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News24 reports that according to labour federation Cosatu, a business agreement over the Langeberg and Ashton Foods (LAF) cannery in the Western Cape will not only save 3,000 jobs, it will also ensure the survival of the local agricultural sector.
Tiger Brands has sold LAF to a consortium of local fruit producers and partners for R1. The newly formed consortium (NewCo) includes a local cooperative of fruit growers from Robertson, Ceres, Breede River and the Klein Karoo. The cannery sources fruit from 250 local producers. Western Cape Cosatu secretary Malvern de Bruyn said: “Without this cannery, this area would be a ghost town. The closure of the cannery would have killed the economy in the local towns and would have affected surrounding farmers.” De Bruyn went on to indicate: “Cosatu was at the forefront of the negotiations when the issues started, and there was talk about possible closures. We met with families and other role players to find a way to save this company, and we’re very happy that these jobs will be saved.” Premier Alan Winde also welcomed the agreement. The sale of LAF follows “a strategic decision” by Tiger Brands in May 2020 to exit the business “to better align its portfolio with the group’s stated vision”. As part of the sale, Tiger Brands and NewCo will enter into a contract-manufacturing agreement for the purchase of canned fruit under the KOO brand.
- Read the full original of the report in the above regard by Nicole McCain at News24 (subscription / trial registration required)
Get other news reports at the SA Labour News home page