Ecuador's shrimp industry battles new round of power cuts
The government has said it will prioritize the industrial sector with the shrimp industry not for the first time claiming that power cuts will cost its businesses millions each day.
Ecuador's shrimp industry is once again battling through power cuts as the effects of a long-running energy crisis continue to dog households and businesses in the South American nation.
A fresh round of power cuts that began on Sept. 30 is scheduled to continue until Oct. 6, although there is uncertainty about how long power cuts will actually last.
The Ecuadorian government will introduce power cuts for several hours a day with its hydro-electric plants again impacted by drought.
Shrimp producers trade body Camara Nacional de Acuacultura (CNA) has estimated the outages cost the industry $5 million (€4.5 million) a day.
The government has said it will prioritize industrial needs ahead of domestic consumers, a request repeatedly made by CNA during past power problems.
Shrimp packing plants must plan the reception of product for sorting, processing, packaging and placement in containers for shipment overseas. Without defined electricity supply schedules firms struggle to make logistics arrangements putting commitments to clients at risk.
In addition, packing plants require electricity to process and freeze shrimp at -18 °C, demanding considerable amounts of energy to preserve the quality of the product and comply with food safety standards.
While this may be good news for the medium and long-term, construction of the infrastructure is expected to take years. In the meantime, the industry faces more immediate challenges, including resolving questions over how electricity rates are set, and reducing electricity costs in general, CNA Executive President Jose Antonio Camposano has said.
Numbers for August published on Monday by CNA show Ecuador's global exports rose nearly 5 percent compared with the same month last year to 229.9 million pounds, helped by increases in orders from China and Europe. The increase came despite a fall in shipments to the United States.
In the first eight months of this year, exports were up 1.6 percent from a year earlier at 1.8 billion pounds, keeping Ecuador on course for a new export record.
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