Ecuador power cuts further disrupt country's shrimp industry

Ecuadorean shrimp processors can now expect power limitations through Oct. 20, the result of extended restrictions on electricity consumption from the national energy grid operator.

According to a notification from CNEL EP emailed Oct. 14 to industry participants, at least some in the shrimp processing industry are being required to reduce their grid power demand to zero through Oct. 20. The power cuts began at the start of October.

One exporter said it planned to limit production to 12 hours per day on affected days. The company said it would maintain refrigeration using diesel-powered generation.

Platts assessed Ecuadorean head-on, shell-on shrimp at $4,100/mt FCA Guayaquil on Oct. 14, down $50/mt on the day. Platts is part of S&P Global Energy.

CNEL's notification said the restriction would run continuously and could be extended beyond Oct. 20 if the hydrological, energy and operational conditions that prompted the measure persist.

A shrimp producer reported a 72-hour electricity interruption, adding that while diesel remained available, it was becoming difficult to secure. The source also reported tighter availability of ice and logistical constraints.

"What we need to see is how to work with the processes to avoid losses and be even more efficient," the producer said.

The latest notification follows electricity rationing measures announced by Ecuador's Ministry of Environment and Energy on Oct. 9, when the government ordered the temporary disconnection of industries classified as high voltage 1 and certain industrial users connected at medium voltage.

The disruptions could limit shrimp processing capacity in the near term, although sources had not yet reported a shortage of exportable product. Market participants Oct. 14 instead pointed to increased commercial pressure, with one source reporting slightly lower ex-farm prices and another saying farmgate prices had declined amid electricity and fuel constraints.

Another exporter reported greater flexibility among sellers seeking to place remaining November volumes.

The Ecuadorean government attributed the power cuts to hydrological constraints, higher electricity demand over a holiday period and difficulties supplying diesel to thermal generation barges, and initially said 185 high voltage 1 industrial companies would be affected.

For medium-voltage industrial customers, CNEL subsequently communicated individual disconnection schedules directly to affected companies by email.