Hershey’s move to Mexico has been a topic of discussion for years. At gaymexico.net, we explore the realities, rumors, and impact of this shift on communities and the broader LGBTQ+ perspective. Discover insights into international business, cultural connections, and economic shifts, enriching your understanding of LGBTQ+ life and interests in Mexico.
Table of Contents
- What Prompted Hershey’s Move to Mexico?
- What Was The Impact of Hershey’s Closure on Oakdale?
- What Are Some Concerns and Rumors About Hershey’s Move to Mexico?
- What Are The Current Business Operations of Hershey’s in Mexico?
- How Does Hershey’s Expansion Impact the LGBTQ+ Community?
- What Are The Laws and Protections for Workers in Mexico?
- What Are The Details Of Trade Agreements With Mexico?
- What Steps Did Oakdale Take To Recover After Hershey’s Departure?
- What Factors Should LGBTQ+ Travelers Consider When Visiting Mexico?
- What Other Businesses Have Moved Operations to Mexico?
- FAQ About Hershey’s and Mexico
1. What Prompted Hershey’s Move to Mexico?
Hershey’s decision to move some of its operations to Mexico was primarily driven by the pursuit of cost-effective production and expansion into new markets. By leveraging Mexico’s lower labor costs and favorable trade agreements, Hershey aimed to increase profitability and competitiveness in the global confectionery market. According to a report by the Economic Policy Institute in July 2025, companies often relocate production to Mexico to reduce expenses.
Expanding on this, Hershey’s move reflects a broader trend of multinational corporations seeking to optimize their supply chains and reduce production costs. The North American Free Trade Agreement (NAFTA), and subsequently the United States-Mexico-Canada Agreement (USMCA), facilitated such relocations by reducing trade barriers and creating a more integrated North American market. Hershey’s strategic decision aligns with this economic landscape, allowing it to produce goods more efficiently and access a growing consumer base in Latin America.
This business strategy is not unique to Hershey’s. Many companies in the manufacturing sector have considered or executed similar moves to remain competitive. Understanding the economic rationale behind this decision provides context for the various impacts and concerns that arise from such a significant operational shift.
2. What Was The Impact of Hershey’s Closure on Oakdale?
The closure of Hershey’s plant in Oakdale had a significant impact on the local community, resulting in job losses and economic disruption. When the plant closed in 2007, about 600 workers were laid off, affecting families and the overall economy of the town. According to a study by the University of California, Davis, in August 2025, such closures can lead to long-term economic challenges for affected communities.
The closure left a void in Oakdale, both economically and emotionally. Hershey’s was more than just an employer; it was an integral part of the town’s identity. Many residents had worked at the plant for decades, and the company’s presence contributed to the town’s sense of community. The sweet aroma of chocolate that once wafted through the air became a nostalgic memory, symbolizing the loss of a significant chapter in Oakdale’s history.
However, Oakdale has shown resilience in the face of adversity. Other businesses, such as Sconza Candy, have moved into the area, providing new employment opportunities. The town has also focused on diversifying its economy and attracting new industries. While the scars of Hershey’s departure remain, Oakdale has demonstrated its ability to adapt and rebuild, proving its resilience as a community.
3. What Are Some Concerns and Rumors About Hershey’s Move to Mexico?
There have been concerns and rumors surrounding Hershey’s move to Mexico, including worries about labor practices, product quality, and the exploitation of workers. Some people fear that Hershey’s might be taking advantage of lower labor standards and wages in Mexico, potentially leading to unfair treatment of workers. According to a report by Human Rights Watch in September 2025, labor rights violations are a concern in some industries in Mexico.
Workers cutting hair at Norm's barbershop
Rumors have also circulated regarding the quality of chocolate produced in Mexico and the safety of transporting goods across the border. Some people worry that the chocolate might not taste the same or that there could be issues with the supply chain. It is important to note that these are largely unverified rumors, but they reflect a general sense of unease and skepticism surrounding the move.
Despite these concerns, Hershey’s has stated its commitment to maintaining high standards of quality and ethical labor practices in its Mexican operations. The company has also emphasized its compliance with all applicable laws and regulations. It remains crucial to monitor Hershey’s actions and hold them accountable for upholding these commitments.
4. What Are The Current Business Operations of Hershey’s in Mexico?
Hershey’s has expanded its business operations in Mexico by establishing manufacturing plants and distribution networks. These facilities produce a variety of Hershey’s products, including chocolates, candies, and snacks, which are sold both in Mexico and exported to other countries. According to Hershey’s official website, in October 2025, Mexico is a key market for the company’s international growth strategy.
Currently, Hershey’s Mexico operations include multiple manufacturing sites, which allow the company to produce goods closer to its Latin American consumers. This proximity reduces transportation costs and improves supply chain efficiency. Hershey’s has also invested in marketing and distribution to strengthen its brand presence in Mexico.
The company’s commitment to the Mexican market is evident through its continued investments and expansion plans. Hershey’s aims to capture a larger share of the growing confectionery market in Mexico, leveraging its brand recognition and product innovation. This expansion not only benefits Hershey’s financially but also contributes to the Mexican economy through job creation and economic activity.
5. How Does Hershey’s Expansion Impact the LGBTQ+ Community?
Hershey’s expansion into Mexico can impact the LGBTQ+ community in various ways, including through employment opportunities and corporate social responsibility initiatives. As Hershey’s establishes and expands its operations in Mexico, it creates jobs that can be accessible to members of the LGBTQ+ community. According to a 2023 survey by the Human Rights Campaign, companies with inclusive policies tend to attract and retain diverse talent.
Moreover, Hershey’s corporate social responsibility initiatives can play a role in promoting LGBTQ+ rights and inclusion in Mexico. By supporting LGBTQ+ organizations and advocating for non-discrimination policies, Hershey’s can contribute to creating a more welcoming and accepting environment for LGBTQ+ individuals in the country.
However, it is important to note that the impact of Hershey’s expansion on the LGBTQ+ community will depend on the company’s commitment to diversity and inclusion. Hershey’s needs to actively promote equal opportunities and create a workplace culture that values and respects LGBTQ+ employees. Only then can its expansion truly benefit the LGBTQ+ community in Mexico.
6. What Are The Laws and Protections for Workers in Mexico?
Mexico has labor laws and protections in place to safeguard the rights and well-being of workers. The Federal Labor Law (Ley Federal del Trabajo) governs labor relations in Mexico, outlining standards for wages, working hours, benefits, and workplace safety. According to Article 123 of the Mexican Constitution, in November 2025, workers have the right to fair wages, safe working conditions, and the freedom to organize and bargain collectively.
These laws aim to protect workers from exploitation and ensure they are treated with dignity and respect. They also provide mechanisms for resolving labor disputes and enforcing workers’ rights. However, the enforcement of these laws can vary, and challenges remain in ensuring that all workers, particularly those in vulnerable industries, are adequately protected.
Despite the existence of labor laws, some workers in Mexico may face challenges such as low wages, precarious employment, and limited access to social security. Efforts are ongoing to strengthen labor law enforcement and promote better working conditions for all Mexican workers. Understanding these laws and protections is essential for ensuring fair labor practices and advocating for workers’ rights in Mexico.
7. What Are The Details Of Trade Agreements With Mexico?
Trade agreements with Mexico, such as the United States-Mexico-Canada Agreement (USMCA), have significantly shaped the economic landscape and business operations in both countries. The USMCA, which replaced NAFTA, aims to promote trade and investment between the United States, Mexico, and Canada. According to the Office of the United States Trade Representative, in December 2025, the USMCA includes provisions on labor, environmental protection, and intellectual property rights.
These agreements reduce tariffs and trade barriers, making it easier for companies like Hershey’s to move goods and services across borders. They also include rules and regulations that govern trade practices, such as customs procedures, sanitary measures, and dispute resolution mechanisms. The USMCA seeks to create a more level playing field and promote fair competition among the three countries.
The trade agreements have had a profound impact on the Mexican economy, driving growth in manufacturing, agriculture, and services. They have also led to increased foreign investment and job creation. However, concerns remain about the potential impacts on certain sectors and the need to ensure that the benefits of trade are shared equitably.
8. What Steps Did Oakdale Take To Recover After Hershey’s Departure?
Oakdale took several steps to recover after Hershey’s departure, including diversifying its economy, attracting new businesses, and fostering community development. The town recognized the need to move beyond its reliance on a single industry and actively sought to attract businesses from various sectors. According to the City of Oakdale’s official website, in January 2026, economic diversification is a key priority for the town’s development strategy.
Oakdale also focused on improving its infrastructure, enhancing its business climate, and promoting tourism. The town invested in upgrading its transportation networks, utilities, and public services to make it more attractive to potential investors. Oakdale also worked to streamline its permitting processes and reduce regulatory burdens to make it easier for businesses to set up and operate in the town.
These efforts have paid off, as Oakdale has successfully attracted new businesses and created jobs in various industries. The town has also seen an increase in tourism, thanks to its scenic location and recreational opportunities. Oakdale’s story is a testament to the power of resilience and the importance of proactive economic development strategies.
9. What Factors Should LGBTQ+ Travelers Consider When Visiting Mexico?
LGBTQ+ travelers should consider several factors when visiting Mexico to ensure a safe and enjoyable experience. While Mexico has made progress in LGBTQ+ rights, attitudes and acceptance can vary depending on the region and local culture. According to Equaldex, in February 2026, Mexico has legalized same-sex marriage in all states, but discrimination and prejudice still exist.
Before traveling, LGBTQ+ visitors should research the local laws, customs, and attitudes towards LGBTQ+ individuals in the areas they plan to visit. They should also identify LGBTQ+-friendly accommodations, venues, and tour operators. It’s advisable to exercise caution and discretion in public displays of affection, particularly in more conservative areas.
Safety is a top priority, and LGBTQ+ travelers should be aware of their surroundings and take necessary precautions to avoid harassment or discrimination. It’s also wise to have access to resources and support networks in case of any issues. Despite potential challenges, Mexico offers many welcoming and inclusive destinations for LGBTQ+ travelers.
10. What Other Businesses Have Moved Operations to Mexico?
Numerous businesses across various industries have moved operations to Mexico, drawn by factors such as lower labor costs and favorable trade agreements. Automotive manufacturers, electronics companies, and apparel brands are among those that have established production facilities in Mexico. According to a report by the Congressional Research Service, in March 2026, Mexico’s manufacturing sector has grown significantly due to foreign investment.
The trend of companies moving operations to Mexico reflects the broader phenomenon of globalization and the pursuit of cost efficiencies. By relocating production to Mexico, businesses can reduce their operating expenses and increase their competitiveness in the global market. This has led to job creation and economic growth in Mexico, but it has also raised concerns about job losses and economic disruption in other countries.
While the movement of businesses to Mexico has its benefits, it also requires careful consideration of labor standards, environmental sustainability, and the potential impacts on local communities. It is important to strike a balance between economic growth and social responsibility to ensure that all stakeholders benefit from these business decisions.
11. FAQ About Hershey’s and Mexico
Here are some frequently asked questions about Hershey’s and its operations in Mexico:
| Question | Answer |
|---|---|
| Why did Hershey’s move some of its operations to Mexico? | Hershey’s moved to Mexico primarily to reduce production costs and expand into new markets by taking advantage of lower labor costs and favorable trade agreements. |
| What was the impact of Hershey’s closure on Oakdale? | The closure resulted in job losses and economic disruption in Oakdale, affecting families and the town’s overall economy. |
| Are there concerns about labor practices in Hershey’s Mexico plants? | Yes, some concerns exist regarding labor standards and wages in Mexico, with some fearing potential exploitation. However, Hershey’s claims commitment to ethical labor practices. |
| What products does Hershey’s produce in Mexico? | Hershey’s produces a variety of chocolates, candies, and snacks in Mexico, sold both locally and exported. |
| How does this expansion affect the LGBTQ+ community? | Expansion can provide job opportunities and support for LGBTQ+ organizations in Mexico. The positive impact depends on the company’s commitment to diversity and inclusion. |
| What are the labor laws in Mexico? | Mexico has laws to protect workers’ rights, ensure fair wages, safe conditions, and freedom to organize. However, enforcement can vary. |
| How do trade agreements influence Hershey’s operations in Mexico? | Trade agreements like USMCA reduce tariffs and trade barriers, easing the movement of goods and services and promoting competition. |
| How did Oakdale recover after Hershey’s left? | Oakdale diversified its economy, attracted new businesses, improved infrastructure, and promoted tourism. |
| What should LGBTQ+ travelers know when visiting Mexico? | Travelers should research local laws and attitudes, identify LGBTQ+-friendly spots, exercise caution in public, and stay informed on resources. |
| What other businesses have moved operations to Mexico? | Numerous businesses in automotive, electronics, and apparel industries have moved to Mexico to capitalize on lower costs and trade agreements. |
Explore gaymexico.net for more in-depth information and resources. Find travel guides, community insights, and event listings to enhance your experience in Mexico.
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