Dairy Shortage Expands From Cottage Cheese to White Cheese in Israel

In recent days, Israeli consumers have noticed a growing shortage of white cheese products in supermarkets, extending the ongoing scarcity of cottage cheese. Shoppers visiting multiple local chains reported empty shelves where white cheese varieties, including 3% and 9% fat options, as well as cream cheese, are typically stocked. One frustrated customer told Walla News that even affordable white cheeses priced around 15 shekels were unavailable, making it difficult to prepare simple meals like sandwiches for children.

Industry insiders attribute the white cheese shortage to the persistent lack of cottage cheese, which began weeks ago and has worsened. Retailers often receive only a fraction of their ordered stock, with some peripheral areas getting as little as a single container. The increased demand for white cheese as a substitute has led to hoarding and further supply disruptions. Food market sources urge government intervention, suggesting import quotas be opened to alleviate the crisis.

The root cause of the cottage cheese shortage is a technical malfunction at Tnuva's Alon Tavor plant, specifically a failure in the automated warehouse system responsible for dispatching products to distribution trucks. Although the cottage cheese is produced and packaged, it cannot be shipped efficiently. German technicians from Dematic, the system operator, have been unable to perform on-site maintenance due to security concerns and canceled visits during recent military operations. Remote assistance and manual operation attempts have only partially mitigated the problem.

Demand for dairy products has increased by approximately 4% since the start of the year, partly because fewer Israelis have traveled abroad amid security tensions. This heightened demand, combined with logistical delays, has made shortages more apparent. Unlike previous suspicions of artificial scarcity linked to pricing mechanisms, this situation stems from genuine supply chain issues.

Allegations that Tnuva might be deliberately restricting cottage cheese supply to boost sales of other dairy products have been firmly denied by industry insiders. They emphasize that Tnuva loses revenue when cottage cheese is unavailable and that the problem is a technical one affecting one of its nine production facilities nationwide. Tnuva and Strauss, which together dominate the white cheese market, claim that production and supply of white cheeses continue as usual and have even been increased to meet demand.

The shortage highlights the vulnerability of Israel's dairy supply chain and the need for swift regulatory and operational responses to prevent further consumer impact.