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Full Breakdown

End of Israel’s Cottage-Cheese Shortage

8/12/2026, 10:34:39 PM

Cause of the Shortage

The shortage of cottage cheese and white cheese that began before Shavuot was traced to a malfunction in the automated pallet-movement system at Tnuva’s Alon Tavor dairy. The warehouse software, supplied and maintained by the German firm Dematic, failed to move finished product from the packaging line onto distribution trucks. Production continued, but the disruption prevented the cheese from leaving the plant. Tnuva staff operated part of the system manually while Dematic technicians attempted remote assistance via phone and Zoom, a workaround that allowed limited dispatches but fell far short of normal supply rates.

Supply Recovery

After nearly two months of intermittent availability, Tnuva has resumed normal deliveries to retail chains. Market sources reported to Walla that rebuilding inventory and filling the vacuum created during the shortage required time, and that the improvement has been noticeable only in the last few days, with products now remaining on shelves throughout the day and into the evening. The company’s renewed shipments have also alleviated the secondary shortage of white cheese that emerged as consumers shifted demand from the unavailable cottage cheese.

Market Context

Demand for dairy products rose roughly 4 % since the start of the year, driven in part by fewer Israelis traveling abroad because of the security situation. The heightened demand, combined with the supply gap that began at Shavuot, amplified the impact of the warehouse failure on retail availability. During the peak of the crisis, shelves that normally held tubs of cottage and white cheese were stocked with alternatives such as labneh and sour cream.

Official Response and Outlook

Tnuva’s management confirmed that the technical issue was confined to the warehouse automation and not the production line. The company indicated that the manual-operation interim solution will continue until the automated system is fully restored. No further disruptions are anticipated, and retailers expect a stable supply of both cottage and white cheese for the foreseeable future.