Transformation Shaping Future at Hunts Point Market

Wholesalers are investing in the tools customers need to thrive.

The Hunts Point Produce Market has long been the beating heart of fresh produce distribution in the Northeast. Today, however, the iconic Bronx facility finds itself at a crossroads. As wholesalers navigate changing customer demands, rising costs and aging infrastructure, momentum is building around plans to modernize and reposition the market for the future.

A lease extension has provided breathing room, but the larger conversation centers on redevelopment and what comes next. While consensus remains a work in progress, wholesalers increasingly agree that investing in facilities, technology and strategic partnerships will be essential to maintaining Hunts Point’s vital role in the produce supply chain.

Many wholesalers express doubt about building a replacement market, especially because Hunts Point will have to remain in operation during a major construction program. Many wholesalers have invested to upgrade their existing facilities, which makes a teardown even more difficult to recommend. And getting capital organized for such a project is an immense task.

So, ideas about redevelopment in and around the existing structure are getting more attention. Still, the daunting task will require careful organization and consensus, complicated by the change in the New York political landscape every four years.

The market gained an eight-year lease extension to 2039, but while that affords more time, it does nothing to change the physical and operating realities.

Joel Fierman, president of Fierman Produce Exchange, has maintained that a complete market reconstruction is impractical, arguing that securing the necessary funding would be difficult and that resources could be more effectively invested in modernizing the existing facility.

He says a new market just doesn’t fit the reality of Hunts Point operations. “Basically, it’s not going to happen.”

Matthew D’Arrigo, owner of D’Arrigo New York, says the market continues negotiations with the New York City Economic Development Corporation and the parties are exploring designs Hunts Point will accept as a cooperative enterprise.

Accommodations for transportation and delivery are critical to a market remake. D’Arrigo says market wholesalers have been doing more business further afield, as well as more deliveries.

“I think there’s actually more customers that are shopping the market or calling up the market and looking to get deliveries,” he says.

NOT STANDING STILL

Wholesalers are evolving amid the overall future market uncertainty, says D’Arrigo. Take technology for example. Scanning tech has gained acceptance, and today helps wholesalers with issues around efficiency and traceability.

“Our inventory control is much tighter than it used to be,” D’Arrigo says. “Is it revolutionary? No. It’s evolutionary.”

Artificial intelligence has been advancing at CJ Brothers, says Justin Leis, director of business development. The company is coding and building proprietary software, including integrations to improve performance across functions, including, for instance, transport.

“We’ve integrated our trucking management system with a dialing and texting application,” he says. “So, we have all the loads being pulled into this new platform from the TMS, which has the carrier info, the pickup info, the drop-off info, the tracking on the truck, and then we’ve got the calling and texting service automatically checking in with the drivers.”

When drivers respond via phone or text, the system automatically takes the information and combines it with GPS input to create a real-time ETA.

A&J Produce Corp. has launched a tropicals department, beginning direct import operations, starting small, but with an eye to building out the business more effectively.

“We’re going to start with plantains as the first direct item,” says Stephanie Tramutola, director of marketing and administration, “and then from there, we’ll expand. We’re excited about that.”

A&J is also making a push on the customer front, according to John Thomas Bonomolo, director of operations and administration, who explains the company has moved to ensure that the breadth of product it offers meets the city’s needs, whatever the local preferences.

“We hired a gentleman to go out on the road, go get new customers, go get old customers that we lost contact with,” says Bonomolo. “He’s been bringing them in.”

A&J has also expanded cold storage with additional electric refrigerated trailers that contribute to efficiency and sustainability, and is staying current on emerging AI tools, including Nash AI and Pepper AI.

“We’re making sure we’re staying up to date on what’s happening industrywide,” says Tramutola, pointing to engagement with the Eastern Produce Council and International Fresh Produce Association.
Recently, A&J welcomed family member James Bonomolo to the team, where he will take on vegetable sales, and, in 2027, the company will celebrate 50 years in business.

MULTIFACETED APPROACH

Market wholesalers are also expanding off-market. For example, the Katzman operations includes its wholesale business, Katzman Produce, on the Hunts Point Produce Market, but also now has multiple companies outside of the market.

“Katzman’s business has evolved a lot over the past few years,” says Robert Katzman, business development and food safety coordinator. “We’ve honored our 100-plus years of family and history, and we hold our same heart values as the foundation of everything we do. At the same time, we’ve diligently focused on sustained growth and succession planning.”

He says it launched a distribution business, Katzman Distribution, and has officially expanded to a family of companies, with capabilities throughout the supply chain. “This evolution has enabled us to provide even better service to our customers throughout New York City, the tri-state area and the Northeast, propelling all of us forward as we grow together.”

Several years ago, Katzman launched an organics program. Joe Eisinger, the company’s organics buyer, says creating a distinct operation within the larger company is supported by the many consumers who retain a strong affinity for organics, especially younger, health-conscious consumers.

“There’s still a very good demand here on the East Coast for organic produce,” he says.

Today, the Katzman U.S. Department of Agriculture-certified organics program now offers more than 200 SKUs, and has a dedicated sales team and organics warehouse on the Hunts Point market to support continued growth. The company works with existing suppliers, but has developed new relationships across the U.S., and even internationally.

“That all reflects us listening to our customers and asking them what they are looking for,” says Eisinger.

Katzman has also created a talent development department, led by Alissa Marcus, reflecting the company’s determination that investing in its people could have a great payoff. Katzman had instituted a successful leadership development project in 2019, and that became the starting point for the talent development department launch, Marcus says.

“We saw so much traction,” she says. “We asked how do we scale this to the entire company?

“We’re going to be affording opportunities for real, honest communication, and opportunities to empower our staff to succeed in their current roles and potentially other roles.”

Katzman’s family of companies also includes Global Harvest, an importer with service-disabled veteran ownership, says Paul Jaffa, president.

In 2019, Jaffa launched Global Harvest as a distinct operation within Katzman to give the import business a specific identity. Now, he says, Global Harvest is recognized as a “direct importer of our own products. We go overseas. We source our products from our growers. That way, when we go to our direct retail customers, we’re selling our product from our growers. We’ve gone out, done research. We’ve evaluated their products. We know it’s a high-quality product. We know they’re quality growers.”

Global Harvest puts “boots on the ground in-country,” he says, to ensure it is knowledgeable about each region and each grower that the operation engages.

KEEPING IT GOING

Whether it’s extending an extra week’s credit or doing business at a dollar less, the core of Hunts Point market operations is balancing the needs of the wholesaler and the customer.

According to Carey Rubin of Rubin Bros., maintaining strong operations requires a disciplined focus on key priorities, careful attention to detail, and ongoing efforts to improve efficiency through technology and other operational advancements.

“It’s really just a day-to-day grind in terms of trying to maintain costs,” he says. “At the end of the day, there are certain variables that are uncontrollable: What you’re going to pay for the product, because we don’t buy it on contract, and how much it costs to get it here. You only hope that you’re paying comparable rate prices with what your competitors are paying.”

Delivery continues to be a critical issue, as more market customers want, and even need, wholesalers to get goods to them. Yet, that drops more expense on wholesalers.

“We run trucks, and it costs a lot of money,” Rubin says. “Obviously, fuel is a big issue now, but you also have to maintain that truck, have the labor to run the truck, the insurance.

“So, if you roll on the same playing field, how do you differentiate? It’s customer service, quality and brand recognition. That’s the only way, in this market, to differentiate yourself. We all sell the same product.”

— Carey Rubin, Rubin Bros

“That’s a no-brainer, wanting delivery. But that also kind of ties you into one house. If I’m going to deliver to a customer, they have to order enough from me to warrant a delivery.”

Rubin says those customers who still come down to the market in their own trucks, or who send a truck to the market, have an opportunity to shop and work with multiple wholesalers, and make the final decision on what’s the best produce available for their customers. “There is an advantage for people to come to the market.”

MAKING STRIDES

Trucco has been engaged in a multi-year business expansion, in part by innovating and running with the momentum generated by successful programs, according to Yasmin Pacia, chief marketing officer.
“Our company has had tremendous growth after COVID,” she says.

One example of that growth is in cherries. “We started importing from Chile a couple years ago,” says salesman John Magna. “That program is growing continuously every year.”

As for Trucco’s formidable kiwi program, Magna says they’re bringing a new variety out of New Zealand, RubyRed kiwi, a Zespri item. “We brought in a good amount and moved it to a lot of the main retailers on the East Coast.”

“We saw incredible responses,” says Magna.

Pacia notes the company continues to do well with its branded green kiwi, KiwiStar, available in conventional and organic.

Magna says most of Trucco’s imported product lands in the company’s Vineland, NJ, distribution center. The company has expanded the facility, which now totals 180,000 square feet. Still, Hunts Point remains Trucco’s wholesale distribution hub for New York City and immediate environs.

At CJ Brothers, the company’s import program has been expanding, and Leis says that being an importer has been “very interesting” over the past year with tariffs imposed, struck down by the U.S. Supreme Court and then subject to refunds as imposed by the U.S. Court of International Trade.

Leis says that despite the challenges last year, CJ made the import business work, with better prospects, experience and capabilities cause for optimism. “This year is already looking like a much better year on the import side than last year was. A lot of the volatility in the domestic market has created some opportunities.”

“This year is already looking like a much better year on the import side than last year was. There was just so much uncertainty last year.”

— Justin Leis, CJ Brothers

Leis notes that, as always, outside influences can have a profound effect on the Hunts Point market, and it’s not only weather. Freight prices are up with the increase in fuel costs, which has compressed margins especially on less expensive commodities.

FOODSERVICE FOCUS

Over the past few years, Coosemans New York has been rolling with the development of the marketplace, navigating tariff issues, and working with foodservice operations.

Charlie Badalamenti, operations manager, says the company has to be ready to help as the foodservice sector deals with dynamics arising out of social media, for example.

“Every restaurant’s diversifying,” he says, “because everyone wants to be the new TikTok-famous restaurant.”

“You have the new generation coming in,” says Peter Faraci, Coosemans sales manager, says, “and everything’s on the phone. They know that, and they know social media sells.”

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Keeping Produce Moving Through Congested Roadways

Michael Armata, buyer and salesman at E. Armata, says that the daily grind continues for wholesalers on the Hunts Point market, but that’s a key to their ability to serve customers.

Earlier this year, when some key commodities were suffering price spikes, Armata could help customers maintain volume by looking for alternative products at better prices, which is a valuable service that market wholesalers offer.

An issue that hasn’t abated is freight, which is squeezing everybody across the supply chain. “Freight has been so high,” says Armata. “It’s a big factor.”

However, it’s not only long-haul freight that is an issue, as more Hunts Point customers look for delivery in a metropolitan area that’s only becoming more congested.

“It’s very difficult,” says Armata. “It’s very congested. Delivery times are tough to make. Today, the right price, service, top-tier quality, everything has to be perfect. We have to find the windows and times to get in there and deliver, drop off, and go. If customers have any issues, we’ll work with them.”

To deal with delivery issues, Armata has been using technology that includes navigation, which helps get products to the right place on time, and the company can monitor where trucks are going, how fast they are going, and what is going on with them via mounted cameras.

• • •

Global Sourcing Keeps Fresh Produce Flowing

The Katzman Global Harvest operation started with a single item, then added a citrus assortment and has continued growing so that, today, it can provide product 52 weeks a year. When required, it also can step in if a domestically grown commodity is short.

Global Harvest has a unique perspective in that it keys on maintaining and building relationships, including in new growing areas, across the international marketplace, says Paul Jaffa, the operation’s president.

It also deals with the calendar differently, as it plans months in advance and not based on immediate demand and sales spikes as they occur annually.

“We’re in tune with what’s happening globally,” says Jaffa, “why things are starting to happen and how they’re going to shape, and how we think that’s going to start to affect the overall market in the U.S. We’re doing a lot more forecasting, a little predictive analysis of where we think this market is going to be in three months, four months, five months.”