Starting February 1, 2025, pet food in Ecuador will be exempt from VAT, thanks to advocacy by the Ecuadorian Committee for Pet Nutrition (CENMA). This policy is expected to lower costs for over 8 million pet-owning families, fostering better access to high-quality pet food and driving growth in the local pet food industry. Local manufacturers like Pronaca are capitalizing on this demand, with Pronaca investing $25 million in a facility to boost production by 25%. While the VAT exemption presents growth opportunities, challenges such as increased demand and competition may require careful scaling and innovation.
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