Tnuva Struggles to Resolve Cottage Cheese Shortage Amid Factory Malfunction
For several weeks, Israeli consumers have faced a severe shortage of cottage cheese, a staple in the Israeli diet, due to a malfunction at Tnuva's Alon Tavor factory. The disruption in the automated logistics system, specifically the German-made Dematic system responsible for warehouse management, has halted regular shipments. Tnuva estimates that normal supply may resume within a week, but the ongoing issue has left retailers and consumers frustrated, with some supermarkets filling empty shelves with yellow cheeses to mask the shortage.
Tnuva dominates the soft white cheese market with a 75% share in cottage cheese and 50% in white cheeses, making any disruption highly impactful. The shortage is exacerbated by increased demand driven by a rising population and a growing trend toward protein consumption. Previous incidents in recent years, including mechanical failures and logistical problems, have also caused supply issues. The current problem is compounded by the refusal of German technicians to travel to Israel due to its designation as a conflict zone, forcing remote repairs via Zoom, which have so far been ineffective.
Industry leaders highlight a broader issue of foreign technical experts declining to service Israeli factories, leading to idle machinery and operational challenges. Some companies have resorted to creative solutions, such as training local teams to handle repairs. Despite these difficulties, Tnuva insists production has increased by 3.5% compared to last year, though distribution remains hampered.
Retailers express understanding but emphasize the strain on the supply chain, noting that competitors like Tnuva's main rivals, Tera and Strauss, have reduced production of regulated dairy products, increasing pressure on Tnuva. Experts warn that the heavy market concentration in Tnuva poses systemic risks to Israel's dairy supply. The shortage has revived memories of the 2011 "Cottage Cheese Protest," underscoring the product's cultural and economic significance.
The shortage highlights challenges in Israel's food industry infrastructure, including outdated systems and insufficient contingency planning. With the conflict zone status unlikely to change soon, the industry faces ongoing hurdles in securing foreign technical support. The situation raises questions about investment priorities and the resilience of Israel's dairy supply chain moving forward.
