In Salcedo, Ecuador, the once-thriving ice-cream industry, rooted in the mid-20th-century innovations of Franciscan nuns, faces a precarious future due to persistent power outages. These outages have intensified since September, lasting up to 14 hours daily, and have been driven by a drought affecting Ecuador's hydroelectric power dependency. As a result, local businesses, including the renowned Polar Bear ice-cream factory, struggle with reduced production and have been forced to lay off employees. Gabriel Pumasunta, the factory owner, warns that continued outages could lead to permanent closure, leaving the town's economy in a vulnerable state.
Salcedo, famous for its diverse fruit-flavored popsicles, including unique flavors like taxo, has already seen 30 of its 80 small ice-cream plants close. The power shortages have resulted in the loss of approximately 300 jobs, affecting not only ice-cream manufacturers but also local dairy farms, fruit growers, and vendors. The Ecuadorian government has procured fossil fuel generators in an attempt to address the 1,900-megawatt shortfall, but experts doubt these measures will be sufficient. President Daniel Noboa's promise to resolve the crisis this month has been met with skepticism by analysts.
Corp Ice Cream, heavily reliant on international sales, particularly to the US, has seen domestic sales plummet by 40%. Due to these challenges, suppliers are receiving fewer orders, further damaging the local economy. (This story was generated by Newser's AI chatbot. Source: the AP)
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