Ukraine agricultural and logistics infrastructure damage

Ukraine is facing significant challenges to its food security and supply chains due to systematic strikes on agricultural and logistics infrastructure. Reports indicate that approximately 90 percent of retail food storage infrastructure has been destroyed, forcing suppliers to restructure distribution networks and diversify transport routes to mitigate capacity losses.

In the Kyiv region, the impact has been particularly acute, with over 650,000 square meters of logistics centers destroyed over a six-month period. Major retail chains, including Fozzy Group and VARUS, have reported damage to numerous distribution centers and warehouses.

Recent strikes, including on a facility in Gatne near Kyiv, have led to tangible disruptions in food availability. McDonald’s has confirmed menu limitations in certain restaurants, citing delivery delays caused by frequent and prolonged air raid alerts. While core ingredients such as flour, meat, and potatoes have not physically run out, the capacity to process, store, and transport them has been compromised.

To prevent hoarding and ensure availability, major supermarket chains have implemented purchase limits. The ATB network has restricted customers to a maximum of six units of basic goods per person, while Auchan has placed limits on items including canned goods, butter, salt, sugar, flour, and pasta.

Retailers are increasingly adopting less efficient, decentralized logistics models to cope with the crisis. This includes direct deliveries from manufacturers, utilizing small, scattered warehouses, and increasing stock levels directly within stores. While chains like Novus have moved away from centralized distribution hubs to maintain flow, these methods increase operational costs due to higher requirements for fuel, drivers, and vehicles.