Ecuador’s tuna industry is increasingly confronted with rising energy prices. The high electricity prices (around USD 0.14 to USD 0.18 per kilowatt), the recent increase in fuel prices, approved by the Government on January 19th, of marine diesel, from USD 0.90 to USD 1.04 per gallon, and a 30 % increase in bunker fuel are creating a handicap for the country’s tuna industry in its global competition.
When adding all this to the high inflation in the country and consequently the general increase in salaries, the cost of raw materials and services, these factors threaten the completive position of Ecuador’s tuna sector.
It will become increasingly difficult for Ecuador to compete with Asian countries, such as Taiwan and Philippines, says Roberto Aguirre Román, President of NIRSA (Negocios Industriales Real S.A.).
The rise in diesel fuel prices will make the operation cost of each purse seiner higher. Diesel is the most important cost factor in determining the price of fish. High diesel prices combined with long trips to fill up a boat, drive tuna prices up. It is said that in order to afford the extra cost of fuel needed to fish on the high seas, vessel owners may need to lay off one or two crewmembers. Increased fuel prices also drive up in-land transportation costs, leading to higher cost for tin-plate, cartons, and container transportation.
In order to assist tuna canneries in reducing their electric energy costs, Spanish consultants are helping some plants in using their electricity more efficiently. This way not only electricity bills are lowered, but also energy is saved.