Tnuva Faces Renewed Cottage Cheese Shortage Due to Supply Chain Glitch

Israeli consumers are once again experiencing a shortage of cottage cheese, following a similar scarcity in May and June. The shortage stems from a supply chain malfunction at Tnuva's dairy plant in the Alon Tavor industrial zone, which disrupted production and distribution of cup-packaged dairy products, including white cheese and cottage cheese. Although the initial malfunction lasted only one day, it caused supply delays that extended for weeks, coinciding with the Jewish holidays of Shavuot and Eid al-Adha.

Recently, another technical issue occurred in the automated warehouse control system responsible for dispatching product pallets. This time, production was not halted, but pallet dispatch delays immediately affected cottage cheese availability. The product, which has a very short shelf life and is produced in large volumes, is particularly vulnerable to such disruptions. Resolving the problem requires specialized technicians from Germany, who currently cannot enter Israel due to ongoing security concerns despite a relative easing of the conflict.

Retailers report receiving significantly fewer pallets than ordered, with one chain receiving only 4 out of 10 expected pallets. Tnuva states that it has increased cottage cheese supply by 4.5% this year, attributing the shortage mainly to rising consumer demand. Cottage cheese's high protein content and its growing use in cooking and baking contribute to this increased demand. Competitors TARA and Strauss continue to supply cottage cheese normally, though Strauss has seen a slight decrease in deliveries; however, their market share remains small.

Recently, Carrefour took advantage of the shortage by raising prices on TARA and Strauss cottage cheese beyond the dairies' own price increases, but has since moderated these hikes. Tnuva's cottage cheese is sold at 5.40 shekels under Israel's subsidized basket program, but availability is currently limited. Some stores also report ongoing shortages of Tnuva white cheese, though the company denies any overall shortage of this product.