Nogales: Entry To Spring Success

This major point of entry assures retailers product during a key sales period.

Nogales, AZ, is a critical spring gateway for U.S. retailers because it bridges the transition between winter growing regions and the start of major domestic harvests, ensuring consistent supply and volume.

“As an Arizona-based grocer, it’s especially significant to us given our proximity to the border and the direct impact it has on our local warehouses, transportation partners, and the broader regional economy supporting our fresh business,” says Kristina Garris, executive director of fresh for Bashas’ Family of Stores in Chandler, AZ.

Bashas’ is a division of The Raley’s Companies, with 113 stores.

Nogales has historically been the single largest inland U.S. port of entry for vegetables, handling more than $3.5 billion in trade annually, according to Matt Mandel, president and chief executive of SunFed in Rio Rico, AZ.

“Food security for our country necessitates multiple sources, and with Mexico and Canada being our two largest trade partners for fresh fruits and vegetables, integrated supply chains assure supply where and when domestic sources fall short,” he says.

Produce via Nogales during this time ensures full shelves. “The deal enables retailers to secure reliable, timely, large-scale supply during a critical seasonal transition,” says Alan Aguirre, chief marketing officer at Divine Flavor in Nogales, AZ. “That consistency, combined with promotable volumes and strong logistics infrastructure, helps retailers remain competitive with fresh inventory, impactful displays, and stable programs throughout the spring season.”

With four retail store locations, as well as a wholesale delivery department servicing over 300 restaurants and markets throughout metro Detroit, Joe Randazzo’s Fruit & Vegetable in Detroit, MI, must maintain a steady supply.

“Nogales allows us to keep our aisles fully stocked and continue providing the largest selection of produce at the lowest prices for our customers,” says Sammy Randazzo Jr., produce buyer.

“Nogales allows us to keep our aisles fully stocked and continue providing the largest selection of produce at the lowest prices for our customers.”
— Sammy Randazzo Jr., Joe Randazzo’s Fruit & Vegetable, Detroit, MI

At a time when many domestic growing regions are either not yet in production or operating at reduced volumes, Nogales ensures consistent supply of essentials, agrees John Davidson, director of sales at Malena Produce in Nogales, AZ. “This steady flow of product allows retailers to maintain full assortments and meet year-round consumer demand.”

The Nogales spring deal drives more than product availability, Garris says. “It fuels traffic to our stores through compelling produce ads, reinforces fresh perception with ‘local’ marketing callouts, supports competitive pricing, and creates cross-merchandising opportunities across the fresh departments.”

“When executed well, it [the Nogales spring deal] helps reset price perception after winter, improve produce performance, and serves as a springboard for overall fresh growth.”
— Kristina Garris, Bashas’ Family of Stores, Chandler, AZ

“When executed well, it helps reset price perception after winter, improve produce performance, and serves as a springboard for overall fresh growth.”

SPRING BOUNTY

The region accounts for nearly 40% of the nation’s fresh produce volume during this period, according to Mark Munger, vice president of marketing and business development at IPR Fresh in Nogales, AZ.

“Its location provides efficient access to a broad portfolio of high-quality fresh produce, helping retailers streamline transportation, lower supply chain costs, and maintain superior product freshness for consumers.”

“Its [Nogales] location provides efficient access to a broad portfolio of high-quality fresh produce, helping retailers streamline transportation, lower supply chain costs, and maintain superior product freshness for consumers.”
— Mark Munger, IPR Fresh, Nogales, AZ

According to Fresh Produce Association of the Americas (FPAA) in Nogales, AZ, more than 50 different produce items enter through Nogales warehouses each year.

“Nogales continues to be known for its diversity and depth of volume,” says Lance Jungmeyer, FPAA president.

Common categories include tomatoes (round, Roma, vineripe, cherry/grape), peppers (bell, minisweet, jalapeño, serrano and other specialties), cucumbers (slicer, Persian, English), squash (yellow, zucchini, hard squash varieties), melons (cantaloupe, honeydew, watermelon), grapes from early-season regions, eggplant, green beans, and other mixed vegetables, and citrus (grapefruit, key limes, lemons).

Randazzo says they source an immense amount from Nogales, including “everything from jalapeños, poblanos, red, yellow, orange, and green peppers to squash, such as zucchini, yellow squash, hard squash, and tomatoes, as well as cucumbers.”

“Our biggest spring mover coming out of Nogales is watermelon. It’s always one of the strongest volume drivers for us this time of year.”

The Nogales spring deal presents an opportunity for retailers to secure a consistent supply across both vegetables and grapes during a high-demand seasonal window, says Aguirre.

“With promotable volumes and strategic program planning, retailers can offer competitive pricing while maintaining quality and freshness,” he notes. “As we move into the Sonora grape season, the scale and reliability of supply create additional opportunities for impactful displays and multi-week promotions.”

WHAT’S TRENDING

Items through Nogales continue to expand in volume and variety. “The deal through Nogales provides important diversity for our customers,” says Gibran Licona, director of operations at Nogales Produce, a wholesaler in Dallas, TX. “This includes a lot of tropicals and specialties — increasingly popular with U.S. customers.”

Recent trends, according to Jungmeyer, show year-over-year growth in spring volumes, supported by increased acreage and adoption of greenhouse and shade-house techniques, and stronger demand from U.S. retailers for early-season produce. “The overall trend for the past decade has been continued incremental growth, particularly in hothouse vegetables and specialty varieties.”

Malena Produce is introducing a new specialty item, zucchiolo, which is versatile and high in nutrients, says Davidson. “Retailer response has been very encouraging. This presents an exciting opportunity for differentiation in the category.”

Divine Flavor is introducing limited production of seedless mini peppers as a new item this year, and, in addition to vegetables, late spring marks the transition into the Sonora table grape program, says Aguirre.

Grape variety continues to spur the market. “What excites me most every spring is the arrival of Cotton Candy Grapes,” says Bashas’ Garris. “They always signal the start of a great season.”

She is also excited about the depth and consistency of products across key categories, particularly tomatoes, cucumbers, peppers, and other high-velocity items. “We continue to see innovation in flavor profiles, pack styles, and value-added offerings, which creates new merchandising opportunities and helps us differentiate our assortment.”

STRONG SUPPORT

Forecasted strong vegetable and grape supply means ample promotion opportunities. Davidson expects robust promotional opportunities in eggplant and colored bell peppers. “Retailers who plan strategically around these categories should find opportunities to drive volume and margin.”

Beyond supply, companies offer support. “We focus heavily on marketing collaboration, including content development, recipe inspiration, POS (point-of-sale) materials, and digital support,” says Aguirre. “We also continue exploring new packaging formats and presentation options to help retailers differentiate at shelf.”

Marketing support has become much more sophisticated over the years, relays Garris. “Many shippers offer ad funding, promotional pricing, display support, digital content, and volume-based incentives.”

“As more growers operate as vertically integrated, brand-forward organizations, retailers also benefit from stronger packaging and consumer-facing marketing,” she adds, “particularly when volume plans are aligned early in the season.”

FPAA offers frequent updates on logistics, regulatory guidance, border coordination, volume shifts, or weather developments. “Category insights and data sharing help with pricing, forecasting, and merchandising,” says Jungmeyer. “Our 2026 Spring Policy Summit in May will emphasize border efficiency and regulatory enhancements.”

THE CHALLENGES

Like many, the Nogales industry is dealing with supply chain challenges, such as rising costs related to labor, transportation, packaging, compliance and crop inputs, says Jungmeyer.

“Companies have responded by improving logistics efficiency, including load consolidation, optimizing routing, investing in modern cold‑chain facilities, and increasing use of automation and technology,” he says.

Increasing costs are definitely weighing heavily on the minds of all agricultural producers, including SunFed’s Mandel.

“The U.S. consumer is accustomed to fresh produce prices well below many other countries,” he says. “While this is great for the consumer battling inflationary fears, it translates to lower returns for producers. When coupled with the increasing costs of, frankly everything, it means an uncomfortable situation for producers already working on thin margins.”

Munger explains IPR has successfully mitigated many rising expenses by enhancing operational efficiencies across both farming and distribution activities. “We remain committed to investing in technologies that reduce labor requirements, optimize water and input usage, and support more precise, just-in-time shipments from our farms to our Nogales distribution facility,” he says. “We recognize retailers are focused on minimizing price fluctuations to customers, and we see ourselves as partners helping find creative solutions to minimize cost increases.”

Additionally, the market feels ongoing impacts of duties. “Following the expiration of the Tomato Suspension Agreement last year, new duties were implemented, increasing costs throughout the supply chain,” says Davidson. “Also influencing the market is the Mexican peso exchange rate, which plays a significant role in overall cost structure and competitiveness. The industry continues to proactively engage in these issues while working to maintain supply continuity and pricing stability wherever possible.”