SALCEDO, Ecuador (AP) — The charming town of Salcedo, nestled in Ecuador’s central highlands, is renowned for its vibrant ice-cream production which traces back to the ingenuity of Franciscan nuns in the mid-20th century.
According to local lore, the nuns enjoyed refreshing fruit shakes made with dairy from local farms. One day, a creative sister began repurposing leftover ingredients to create delectable popsicles, which quickly became a hit within the community.
Initially, the sisters sold these treats to raise funds for the needy, but the entrepreneurial spirit of Salcedo’s residents soon took hold. They began experimenting with diverse flavors and production methods, giving rise to a robust popsicle industry that has attracted ice-cream enthusiasts from far and wide.
Today, however, the future of Salcedo’s beloved ice-cream industry is under threat. An alarming series of power outages—recently exacerbated by a prolonged dry season—has cast a shadow over this once-thriving local business.
These daily power outages, which began earlier this year and escalated in September, can last up to 14 hours. The drastic changes in weather have severely impacted Ecuador’s hydroelectric plants, which typically generate 70% to 90% of the nation’s electricity. After years of heavy investment in dams, the country is now grappling with a significant energy shortfall.
“We’re experiencing the worst living conditions,” said Gabriel Pumasunta, who operates the Polar Bear ice-cream factory alongside his two brothers. “Our town is engulfed in darkness.” Pumasunta expressed concerns that if the outages persist this month, they will be forced to close the factory.
Since the intensification of outages in September, Polar Bear’s production has plummeted from 60,000 popsicles monthly to just 10,000. As a result, the company has had to lay off eight out of its ten employees.
To keep his business afloat, Pumasunta has been utilizing the company’s savings and has taken on various roles, from machine maintenance to deliveries. Additionally, his family has stepped in to assist during these challenging times.
President Daniel Noboa, who was elected following the resignation of his predecessor, has struggled to address the ongoing electricity crisis. In Guayaquil, Ecuador’s largest city, the chamber of commerce estimates that power outages are costing local businesses approximately $700 million each week.
Germán Soria, president of the artisanal ice-cream makers’ association, reported that before the crisis, Salcedo boasted around 80 small and medium-sized ice-cream operations along with three larger factories. Currently, nearly half of these smaller producers have shut down.
Three weeks ago, Soria halted operations at his own ice-cream plant, located behind his home, and has been compelled to sell off equipment and land to pay his debts.
“The unpredictable outages make it nearly impossible to schedule production,” Soria explained. “Our customers are hesitant to order ice cream, as they can’t guarantee it will remain frozen.”
As noted by local authorities, the power crisis has resulted in the loss of 300 jobs in Salcedo, a town famous for its fruit-infused ice cream, including unique flavors like blackberry and taxo, a tangy fruit similar to passion fruit.
Despite President Noboa’s assurances that electricity shortages will resolve by the end of the month, analysts remain skeptical, suggesting the country lacks the capacity to cover a 1,900-megawatt deficit.
In an effort to mitigate the crisis, the Ecuadorian government has acquired and leased several large fossil fuel-powered generators, which are expected to be operational in the coming weeks. However, Marco Acuña, president of Ecuador’s national guild of engineers, remarked, “These generators cannot fill the current gap.”
As Salcedo’s ice-cream industry falters, the repercussions extend throughout the local economy, affecting dairy farmers, fruit growers, transport services, and small shops once thriving on the sale of popular popsicles.
“Before the outages, we used to buy up to 150 popsicles a day,” recalled Maria Juliette López, owner of a small shop along the Panamerican highway, frequented by tourists and truck drivers. “Now, we can only manage to buy 40 popsicles; anything left over melts when the freezer goes off,” she lamented.
While the smaller producers and vendors are hit hardest, the impact is felt even by Salcedo’s three largest ice-cream factories. At Corp Ice Cream, which previously thrived with 35 employees producing 20,000 popsicles daily, a recent visit revealed an eerily quiet facility, with only one employee present due to power shortages.
Paco Hinojosa, the factory manager, noted that while orders from U.S. customers keep their business afloat, the winter months halt these exports until March, resulting in a 40% decline in sales across Ecuador since the onset of power outages.
Consequently, Corp Ice Cream has reduced its daily orders of milk and cream by half, impacting suppliers significantly. Next to his desk, Hinojosa has placed a small altar in honor of St. Michael the Archangel, seeking his blessings for health and rain.
“It brings tears to your eyes to see this factory paralyzed due to power outages,” he shared solemnly.
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