I lived on henry street for a while, and I can't say that I know anything about the back end of the distribution network, but I can say this article is missing a lot of things about the front end. The produce is cheaper than a standard western store, but the quality is much more varied. Moreover, the market (in the economic sense) seems really efficient. If you see something cheap in Manhattan chinatown in every stor…
Now, of course there is a growing ugly fruit and vegetable movement[1]. It's becoming more mainstream and even Whole Foods is buying in[2]. There is an effort in Boston to provide good affordable ugly fruit and vegetables to underserved communities.
[1]http://www.eatingwell.com/food_news_origins/love_ugly_fruits...
[2]http://www.eater.com/2016/3/8/11178270/whole-foods-ugly-prod...