Ecuador is in the midst of an energy crisis, and the shrimp industry is facing huge challenges

Published Oct 23, 2024

Tridge summary

The Ecuadorian white shrimp industry is grappling with a severe power shortage, causing up to 10-hour daily outages that have slashed production capacity by as much as 50% in some factories. This crisis, expected to last until late 2024, has led to decreased export volumes and revenues, particularly affecting shipments to China and the US. Despite a minor export recovery in August 2024, the industry's financial performance remains under pressure due to lower prices. With around 300,000 jobs at stake, industry leaders are urging government action to stabilize the power supply, though the short-term outlook remains bleak, with potential relief anticipated from the upcoming rainy season.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jose Antonio Camposano, executive chairman of the National Chamber of Aquaculture of Ecuador (CNA), pointed out that although the international market demand for white shrimp continues, the domestic power shortage has brought huge challenges to the entire production chain, especially the processing plants and feed production links. Currently, the nationwide power outage in Ecuador has made it difficult for many shrimp processing plants to maintain normal processing and freezing operations. Factories that are not equipped with sufficient backup power generation equipment are particularly affected and cannot process shrimp efficiently, which in turn affects the overall export volume. Feed production plants have also been hit by the power shortage, and production capacity has dropped significantly, affecting the feed supply of farms. Packaging plants face up to 13 hours of shutdowns every day, which are caused by 10 hours of power outages. The equipment cannot be restarted in time, ...

Source: Foodmate