Logistics Glitch Causes Cottage Cheese Shortage in Israeli Supermarkets

Israeli consumers have faced persistent shortages of cottage cheese in supermarket chains for several months, with some stores attempting to mask the scarcity by spreading other dairy products on shelves. Unlike previous concerns about artificial shortages aimed at influencing prices, the dairy company Tnuva clarified that the current issue is entirely logistical. The production line at the Alon Tavor dairy plant continues to operate normally, producing and packaging cottage cheese as usual. However, a malfunction in the automated warehouse computer system, managed by the international company Dematic, is preventing pallets from being dispatched to delivery trucks, causing large quantities of product to remain stuck at the plant.

This technical failure has lasted over a month and repair efforts are significantly delayed because foreign technicians needed to fix the system refuse to travel to Israel due to security concerns. Since the dairy relies heavily on automation, manual operation attempts provide only limited relief. Concurrently, demand for dairy products has risen about 4% since the start of the year, partly because fewer Israelis have traveled abroad amid security tensions, increasing pressure on supply chains. Industry sources reject claims that Tnuva is deliberately creating shortages to promote other products, noting the company loses money on unsold cottage cheese.

The shortage is specific to cottage cheese, with no similar scarcity reported for milk, white cheese, or regular yogurt. Previous supply disruptions caused by the shift from institutional to retail markets during wartime have been resolved. Importing cottage cheese is not a viable solution, as it is a unique product not produced abroad, and past import attempts of dairy products have failed. While Tnuva does not commit to an exact resolution date, IT teams are working around the clock, with cautious estimates suggesting normal supply could resume within two weeks, though full shelf replenishment may take several more weeks.