Tnuva Addresses Cottage Cheese Shortage Amid Logistics Glitch at Alon Tavor Plant

Tnuva is working to resolve a significant shortage of cottage cheese and white cheese in Israel caused by a technical malfunction in the automated warehouse management system at its Alon Tavor dairy plant. This disruption, first noticed before the Shavuot holiday and recurring about three weeks ago, has slowed product distribution despite continuous production. Tnuva’s deputy CEO, Anat Gross Shon, emphasized that production never stopped, even during crises like the COVID-19 pandemic or the October 7 conflict, and millions of units were supplied weekly throughout the shortage.

The Alon Tavor facility, which produces 75% of Israel's cottage cheese and 53% of white cheese, relies on a complex automated system by German company Dematic, which manages storage and loading operations. Due to geopolitical instability, Dematic technicians from abroad have been unable to provide on-site support, complicating remote troubleshooting efforts. Tnuva has implemented manual workarounds and prioritized production of 5% fat products, temporarily halting 9% and 12% fat varieties.

Consumers have experienced empty shelves and turned to competitors Strauss and Tnuva’s other rival, Tera, which also faced supply challenges. The shortage has led to increased prices and nutritional concerns due to the lack of affordable dairy staples. Tnuva refuted claims that it deliberately reduced cottage cheese production to promote higher-margin products, citing increased sales year over year.

The company highlighted ongoing investments in infrastructure and expressed hope to restore full supply and stock levels in the coming weeks. It also called on the Israeli government to provide economic incentives to encourage production of essential dairy products and prevent future shortages. Meanwhile, Tnuva’s skilled technical teams continue to manage production and maintenance across its 32 sites, working with Dematic remotely to resolve the issue.

The shortage underscores Israel’s dependency on advanced foreign technology and the challenges of maintaining critical food supply chains amid regional instability and complex logistics systems.