Israeli Retailers Pressure Tnuva Over Prolonged Cottage Cheese Shortage

Major Israeli retailers are expressing growing frustration with Tnuva, the country’s largest food company, due to a persistent shortage of cottage cheese and thinning dairy shelves caused by partial deliveries from multiple dairies. Some retailers have begun imposing sanctions on Tnuva by halting orders of other products from the company to signal their dissatisfaction with the ongoing supply issues. One retailer described the situation as "impossible," noting that the problem has lasted over two months and has led to significant sales losses for which they expect compensation.

The shortage stems from a technological malfunction at the Alon Tabor dairy, specifically a failure in the automated warehouse control system supplied by the logistics giant Dematic. Repairs require technicians from abroad, who have been reluctant to travel to Israel due to the current security situation, particularly tensions between Iran and the U.S. This has caused pallets to become stuck, limiting product availability despite manual efforts to manage the issue.

Tnuva dominates the cottage cheese market with a 75.1% share, and despite a 7.3% sales increase in 2025 to 666 million shekels, competitors like Strauss and Tera cannot fill the supply gap. This has led to increased demand for substitutes such as Ski cheese, which is also becoming scarce. Consumers often resort to more expensive alternatives, and some stores have imposed purchase limits to manage shortages.

Retailers warn that the supply crisis could worsen in August due to seasonal declines in milk production exacerbated by high temperatures. They also fear that promotional discounts may be reduced since consumers are buying available products regardless of price. Tnuva responded by stating it has increased cottage cheese supply by 4.5% compared to last year and attributes shortages to logistical delays amid unusually high demand. Strauss and Tera declined to comment.