A tray denesting apparatus is provided comprising a receptacle for holding at least one nested stack of packing trays. A conveyer belt is further provided for receiving each of the packing trays upon release from the receptacle. The denesting apparatus has at least one set of soft flexible suction cups disposed below the conveyer belt and which are disposed on a bellows assembly which is moveable between a first position and a second position so that at least one of the soft flexible suction cups may adhere to a first one of the packing trays, and successive packing trays. The tray denester further may include an automatic adjustment apparatus to correspond with selected size parameters of the trays being utilized. As a result, an individual tray may be removed from the receptacle, deposited on the conveyer belt and the conveyer belt then advancing the selected tray to the required area of use.