A packaging dispenser, for dispensing stacks of nested trays to a packing device, has a frame, a first conveyor for conveying and supporting a first plurality of stacks of nested trays in a first level, and a second conveyor downstream of the first conveyor for receiving stacks of nested trays from the first conveyor. The packaging dispenser also includes a vertical chute underneath the second conveyor for dispensing stacks of nested trays to a packing device. The second conveyor has a pair of laterally spaced conveyor elements for supporting only lateral edge regions of a stack of nested trays. The laterally spaced conveyor elements are retractable to allow a stack of nested trays, supported thereon, to be released into the chute. The packaging dispenser can further be provided with a tray separator upstream of the chute for loosening individual trays of a stack, while keeping the trays in a stacked and nested arrangement.