It has been revealed which dairy brands may disappear from store shelves in Kyiv

18 August 15:41
EXCLUSIVE

Russian attacks on the distribution centers of major retailers have complicated the delivery of dairy products to the capital. As a result, the selection of products from certain manufacturers in Kyiv stores may be temporarily reduced. Olena Zhupinas, deputy general director of the Association of Milk Producers, told "Komersant Ukrainian" about this.

According to her, large retail warehouses have been affected, while small stores continue to receive products through alternative logistics channels.

“Well, let’s say we have two distribution channels… And it’s precisely the large retail warehouses that have been affected. Meanwhile, these small shops, which are supplied through a slightly different system, are still receiving their deliveries,” says Zhupinas.

Due to the destruction of warehouses, retailers are forced to restructure their logistics and work with a larger number of small warehouses. This increases transportation costs and, according to the expert’s forecast, will affect prices.

While dairy products were previously expected to rise in price by about 10%, the increase may now be significantly higher.

“While we previously said that prices would rise by roughly the rate of inflation—up to 10%—starting in early September, now, unfortunately, this increase could reach 20%,” says Župinas.

Another consequence of the logistics problems is a reduction in the product assortment from certain factories on store shelves. At the same time, there may be more products from local manufacturers on the shelves.

“We’ll see more regional products on store shelves. If, for example, we’re talking about Kyiv—there will be more products from Yahotyn, more from Vyshneve, and more from Bila Tserkva. And in western Ukraine, of course, we’ll see more products from Halychyna and Molokia, because logistically that makes more sense,” she says.

At the same time, there is no reason to talk about a shortage of dairy products in Ukraine. Processing plants continue to operate and are increasing production of long-life products.

“After all, there is long-life milk, as well as butter, cheese, and cottage cheese. There will be no shortage of dairy products. These are simply temporary inconveniences related to logistics.”

So, in Kyiv, certain brands may indeed temporarily disappear or be available in smaller quantities, but a general shortage of dairy products is not expected. The main consequence of the attacks for consumers may not be empty shelves, but higher prices and changes in product assortment.

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