Power outages cripple Salcedo's ice-cream industry

In Ecuador, power shortages have severely impacted the small town of Salcedo, which has a rich history of ice-cream production since the mid-20th century. Initially, ice-cream was produced by Franciscan nuns who ingeniously transformed leftover milk into delicious popsicles, leading to a thriving local industry. However, since the intensification of power outages in September 2023, many small businesses have struggled to operate. For example, Polar Bear, a local company, drastically reduced its popsicle production from 60,000 to 10,000 popsicles per month, letting go of eight employees as they tried to adapt to the crisis. President Daniel Noboa has struggled to find solutions to this electricity crisis, which has been estimated to generate $700 million in losses for Ecuadorian businesses every week. Germán Soria, the president of the association of artisanal ice-cream makers, reported that Salcedo lost a significant number of production plants during this time as many were forced to cease operations entirely, while some have resorted to selling equipment to pay off debts. Additionally, the outages occur at unpredictable times, making it difficult for producers to execute effective production schedules. The government has attempted to address the issue by acquiring large electric generators, but experts claim these measures will not mitigate the ongoing electricity shortfall adequately. As the local ice-cream industry collapses, the effects ripple throughout the economy, harming not just the ice-cream plants, but also local dairy farms, fruit growers, and various small stores reliant on the ice-cream industry for income. For instance, Corp Ice Cream experienced a 40% decrease in sales since the outages began, forcing them to change their purchasing habits drastically, as the factory that once produced 20,000 popsicles daily now operates at a fraction of that capacity. The local sellers face a dire situation, with reports indicating they can only sell minimal quantities of popsicles without fear of spoilage due to the unreliable freezing conditions. The entire community is affected, with the once-bustling factories now silent and the workers left struggling to find ways to cope with the ongoing crisis.