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To: BluH2o
Well, even if that percentage is correct it isn't the price of sugar alone that's pushing Hershey to pull up stakes in PA and head for Mexico. Labor costs are at the crux of the problem ... pure and simple

From the Christian Science Monitor

For example, Kraft, based in nearby Northfield, Ill., pays half as much for Canadian sugar as for American. So when the company was looking to close its underutilized LifeSavers plant in Holland, Mich., it set its sights across the border. This January, Kraft announced it would move its traditional LifeSavers line to its Mount Royal plant near Quebec City.

Labor costs are a problem, but Kraft sure didn't move to Canada for cheep labor. With taxes, labor cost is likely the same or even higher in Canada. It's sugar costs that forced them out. They can buy sugar there at half the cost as in the US and the only ones who benifit from that artifically high sugar cost are a handful of millionare sugar farmers and FL & LA, and the Congress critters they bribe to keep the corrupt quotas in place.

26 posted on 02/16/2007 10:40:45 AM PST by Ditto
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To: Ditto
Labor costs are a problem, but Kraft sure didn't move to Canada for cheep labor.

Once again it isn't the cost of sugar it's labor and all the costs associated with it, i.e., health insurance, pensions; liability insurance cost (tort reform needed), infrastructure cost involved with old plant sites. As far as Kraft is concerned I'm sure they got a sweetheart deal from the Province of Ontario.

28 posted on 02/16/2007 10:59:13 AM PST by BluH2o
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