Report Foreword: Changes in marketing practices and the structure of marketing channels have been taking place in Mexico since the mid-1980s when Mexico began to open its economy. These changes have accelerated since 1994 when the North American Free Trade Agreement was implemented. One of the key market sectors affected by the expansion of trade and foreign investment in Mexico in recent years has been the fresh produce sector, where the rapid expansion of national and international supermarket chains has forced significant change in traditional distribution practices. Nonetheless, the adoption of modern handling and transportation practices for perishable fruits and vegetables in Mexico continues to be inhibited by the absence of well-defined quality standards, poor supply chain management, and inadequate physical infrastructure. This report looks in detail at the supply side and demand side changes that have taken place in Mexico’s fresh produce distribution system in recent years, the challenges that continue to undermine efficient distribution of fresh fruits and vegetables, and the implications of these changes and challenges for U.S. fresh produce growers and shippers.