Both retail chains and dairy producers have suffered attacks on distribution centres and logistics facilities. As a result, stores have temporarily seen a reduced range of milk and other dairy products, although there are no problems with production — the main issue is disruption to logistics.

According to Arsen Didur, Executive Director of the Union of Dairy Enterprises of Ukraine, this summer the distribution facilities of Danone, Lactalis (the Lactel and President brands), and Yahotyn Baby Food Dairy Plant were damaged or destroyed. At the same time, attacks on Fozzy Group’s logistics centres have led to a noticeable reduction in the range of dairy products available in Silpo and Fora stores. Fewer producers and brands are now represented on store shelves.

However, this situation does not indicate a shortage of dairy products at the production level: dairy plants continue to operate. The problem arises at the stage of delivering products from producers to stores due to damage to logistics infrastructure.

Dairy products have a short shelf life and depend on uninterrupted refrigerated logistics. Therefore, when warehouses are damaged and supply routes are disrupted, dairy products are among the first categories to experience a reduction in the range available on store shelves.

One possible solution is DSD (direct store delivery), meaning that products are delivered directly from the producer to individual stores, bypassing distribution centres. However, according to Arsen Didur, around 75% of dairy producers currently lack the resources to switch to this model fully. Most companies have historically operated through distribution centres and do not have enough vehicles or staff to deliver small batches to thousands of stores.

The Executive Director of the Union of Dairy Enterprises of Ukraine notes that dairy processing companies cannot independently handle full-scale deliveries to approximately 1,300 ATB stores or 800–900 Fozzy Group stores. Therefore, direct deliveries can only partially mitigate the problem — on certain routes, in specific regions, or for particular product categories. At present, they cannot fully replace distribution centres.

Damage to warehouses is forcing producers to look for alternative routes, use additional storage facilities, and engage other distributors. This increases logistics costs. According to Arsen Didur, some retail chains are demanding that producers fully compensate for logistics risks. If this practice becomes more widespread, suppliers may look for alternative sales channels, including other distribution networks, the domestic market, or exports.

Arsen Didur believes the industry needs a logistics subsidy to offset transportation costs, as well as diversification of transport routes. Proposed measures include greater use of rail transportation and overland routes through Romania and Poland, as well as involving international insurance companies in covering war-related risks.

The most likely consequence for consumers is a temporary narrowing of the range of dairy products and the replacement of certain brands, rather than a systemic shortage of dairy products. Higher logistics costs may also push up the prices of some products.

The problem facing the dairy market is currently not a lack of products at the plants, but the fact that damaged distribution centres are breaking the link between producers and stores. There is no quick, full-scale replacement for centralised logistics.

By RBC-Ukraine, August 12, 2026.