Tnuva CEO Highlights Milk Price Controls, Cottage Cheese Demand Surge, and Industry Challenges

Gadi Konia, CEO of Tnuva, emphasized that food security is a cultural commitment rather than a marketing slogan during an interview at the Calcalist National Economic Conference. He discussed the ongoing milk price controls in Israel, the need for reform in the dairy sector, investments in meat substitutes, the possibility of a Tnuva IPO, and recent shortages of cottage cheese.

Konia explained that milk price controls remain relevant, particularly for products like white cheese and 38% cream, which have been under supervision since 2014. He noted that Tnuva dominates the market for 38% cream with over 90% share, as competitors have largely exited this segment. While price controls are part of Tnuva’s investment and production culture, he suggested introducing differentiated target prices for controlled versus uncontrolled dairy products to encourage more market players.

Addressing the high cost of raw milk in Israel, Konia attributed it to expensive imported animal feed, lack of direct government subsidies to farmers, and kosher certification requirements. He rejected reforms that would harm Israeli dairy farmers, whom he considers among the most efficient globally. On meat substitutes, he acknowledged global challenges related to taste, texture, price, and nutrition but expressed confidence in future growth, citing Tnuva’s long-term investment in dairy alternatives and ongoing support for startups.

Regarding the recent cottage cheese shortage, Konia attributed it to a surge in demand driven by health trends and social media, alongside production line issues at the Alon Tavor plant. He said Tnuva prioritizes producing cottage cheese and white cheese over other products and is investing tens of millions of shekels to expand capacity. Despite the shortage, sales of cottage cheese increased by 4.5% in the first half of 2026.

Reflecting on his three years as CEO amid Israel’s turbulent times, Konia praised the food industry’s resilience, highlighting that even during intense conflicts, dairy products remained available. He stressed the company’s commitment to maintaining production and supporting employees and shareholders through challenges, recalling full staffing of sites and trucks on October 7 as a symbol of dedication.