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SALCEDO, Ecuador — The picturesque town of Salcedo, located in the central highlands of Ecuador, has a rich history of ice-cream production that dates back to the mid-20th century. This tradition began thanks to the creativity of Franciscan nuns who, inspired by locally sourced dairy, would craft fruit shakes until one sister decided to repurpose leftover ingredients into delightful popsicles, quickly becoming a local favorite.
Initially, the popsicles were sold in the community to raise funds for the needy. However, this led to a burgeoning industry as residents recognized the potential for profit. They started to innovate and develop a diverse array of flavors and production methods, establishing Salcedo as a well-known hub for popsicle enthusiasts.
Recent challenges, however, have cast a shadow over Salcedo’s ice-cream legacy. A series of power outages, attributed to an extended dry season, threaten to undermine the viability of the local ice-cream sector and extinguish hopes for economic growth.
These outages, which began earlier this year and escalated significantly in September, can identity last up to 14 hours daily. The situation arises from an unusually dry climate affecting Ecuador, a country heavily reliant on hydroelectricity, which accounts for 70% to 90% of its energy. Despite substantial investments in dams over the last twenty years, the country is now scrambling for solutions.
“We are enduring some of the worst conditions imaginable,” lamented Gabriel Pumasunta, who operates the Polar Bear ice-cream factory alongside his brothers. “We’re living in darkness.”
Pumasunta has indicated that if the outages persist throughout the month, the factory will be forced to cease operations. “We may need to seek work elsewhere,” he admitted.
Due to the ongoing electricity disruptions, production and storage have come to a standstill, resulting in significant spoilage of products. Prior to the intensified outages, Polar Bear produced approximately 60,000 popsicles per month. Nowadays, output has plummeted to just 10,000, leading to the dismissal of eight out of ten employees.
To navigate this tumultuous period, Pumasunta has exhausted the company’s savings and his family’s financial resources. He has taken on responsibilities typically reserved for workers, managing machinery and deliveries to cut costs, with additional support from his parents.
President Daniel Noboa, elected last year after previous leadership changes, has struggled to address the electricity dilemma. The Guayaquil chamber of commerce estimates that the ongoing power shortages are resulting in losses of around $700 million weekly for businesses across Ecuador.
Germán Soria, president of the artisanal ice-cream makers association, noted a drastic decline in Salcedo’s ice-cream production industry. Previously, the town boasted 80 small to medium-sized ice-cream production facilities and three large factories. Now, about 30 of these smaller enterprises have shut down.
Soria’s own production facility, located behind his residence, has come to a halt. He ceased operations three weeks ago and has had to part with certain machinery and even sell a piece of land to settle debts.
The unpredictability of the power outages has made production planning exceedingly difficult. “Our customers are hesitant to purchase ice-cream, fearing their popsicles might melt,” he explained. Local officials have reported that the power crisis has led to the loss of 300 jobs in Salcedo, putting pressure on its economy, traditionally known for its exquisite fruit-flavored ice creams.
Despite President Noboa’s assurances that the electricity shortages will be resolved soon, many experts are skeptical, citing a significant 1,900-megawatt shortfall the country is ill-equipped to handle.
The government has attempted to combat the crisis by acquiring and renting large generators powered by fossil fuels, which are expected to arrive shortly. Nevertheless, Marco Acuña, head of Ecuador’s national engineers guild, commented that these generators may not sufficiently mitigate the electricity deficit.
Back in Salcedo, the unraveling of the local ice-cream industry extends its consequences across various sectors, affecting dairy farmers, fruit producers, transporters, and local shops specializing in popsicles.
“Before the power outages, we would purchase around 150 popsicles daily,” shared Maria Juliette López, who runs a small store along the Panamerican highway that caters to travelers. “Now we can manage only about 40 a day, as any unsold products risk melting when the power is down.”
Whilst smaller producers have been most affected, even Salcedo’s larger ice-cream factories are feeling the strain. Corp Ice-Cream, once a bustling operation with 35 employees producing 20,000 popsicles daily, now stands nearly idle, with only one worker sweeping in the shadows of the darkened factory.
According to the company’s manager, Paco Hinojosa, their stability has hinged on exporting to the United States. They typically ship about 120,000 popsicles monthly during summer, but winter sees those exports halted until March. In Ecuador, Corp Ice Cream’s sales have plummeted by 40% since September’s outages began, affecting their suppliers too. “Our daily orders of milk and cream, which previously stood at 2,500 liters and 160 liters respectively, have been cut in half,” Hinojosa reported.
Nearby, Hinojosa keeps a small altar dedicated to St. Michael the Archangel, asking for deliverance in terms of health and rainfall. “It breaks your heart to see the factory motionless due to a power deficiency,” he expressed.
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