Tnuva Faces Ongoing Logistics Glitch Halting Cottage Cheese Supply to Israeli Stores

For several months, cottage cheese has been scarce on Israeli supermarket shelves, not due to increased consumption but because of supply shortages. Tnuva, the leading dairy producer, attributes the shortage to a logistical problem that began weeks ago and remains unresolved. The issue lies in the automated warehouse system at the Alon Tavor dairy plant, which manages pallet movement and loading onto delivery trucks. Although production continues normally, much of the cottage cheese cannot leave the plant to reach retailers.

The malfunction in the warehouse automation has persisted for over a month. Repair requires technicians from abroad, but due to the current security situation in Israel, these specialists are unwilling to travel, delaying the fix. Tnuva is attempting limited manual operations to mitigate the problem, but this is insufficient to meet demand. Since the start of the year, demand for dairy products has risen about 4%, partly because fewer Israelis have traveled abroad amid security concerns, intensifying supply gaps.

Contrary to previous suspicions of artificial shortages linked to pricing changes, industry insiders reject claims that Tnuva is deliberately restricting cottage cheese supply to boost sales of other dairy products. A source familiar with the matter stated, "What interest would Tnuva have in not selling cottage cheese? They profit from every cup sold, so shortages mean losses." The problem is a computer system failure managed by Dematic, whose technicians refuse to enter Israel currently.

Other dairy products like white cheese and milk reportedly do not face similar shortages, and Tnuva is not a major player in the yogurt market. Attempts to import cottage cheese or dairy products have failed, as cottage cheese is not produced abroad in a comparable form.

Tnuva's IT team is working around the clock to resolve the issue, cautiously estimating that normal supply could resume within two weeks. However, full replenishment of stock on shelves may take several more weeks. The company hopes to increase deliveries by the end of the coming week but cannot commit to a precise date yet.