Cheese in Israel

The cheese industry in Israel is relatively small compared to other countries, but it has been growing steadily in recent years.

Several artisanal cheese makers in Israel produce high-quality cheeses using traditional methods. Some popular Israeli artisanal cheeses include goat cheese from the Golan Heights and sheep’s milk cheese from the Negev Desert. However, because of the war, many production lines are interrupted.

One of the largest Israeli cheese companies is Tnuva, which produces a range of cheeses such as feta, yellow cheese, and cottage cheese. However, Tnuva is IMHO, not an Israeli company anymore. Some may say otherwise. Tnuva is primarily owned by Bright Food, a Chinese state-owned company. Bright Food acquired a controlling stake of 56% in Tnuva in 2014, based on an overall valuation of NIS 8.6 billion ($2.5 billion).

Some of the most popular cheeses in Israel include. Not all of them have their origin in Israel. Some of them are EU-protected names like “Parmesan”. A “Parmesan” produced in Israel is, according to the EU standards, not a “Parmesan”. Cheese with Israeli roots is highlighted:

1. Labneh – A thick, tangy cheese made from strained yoghurt.
2. “Feta” – A crumbly, salty cheese made from sheep or goat milk.
3. Tzfatit – A hard, salty cheese similar to feta, but with a firmer texture.
4. “Boursin” – A soft, creamy cheese flavoured with herbs and garlic.
5. “Gouda” – A hard, nutty cheese that is typically aged for several months.
6. “Parmesan” – A hard, salty cheese that is commonly used for grating.

Some Economic Backgrounds (2023/2024)

In 2023, the cheese market in Israel showed several key figures and trends:

• Consumption: Israel had a significant per capita cheese consumption of approximately 18.49 kg annually.
• Market Growth: The dairy products and alternatives market in Israel was characterised by rising prices in 2023. For example, Tnuva, Israel’s largest foodmaker, announced an increase of 8.28% for products subject to state price controls. Strauss, another major player, stated an average price increase of 2.33% for products like cottage cheese and yoghurts starting from May 10, 2023.
• Economic Context: The broader economic situation in Israel influenced the market. In 2023, the Israeli economy experienced a significant dip, with inflation control measures in place, which could have implications for the pricing and sales volume of cheese.
• Market Structure: The market for dairy products in Israel includes both price-controlled and non-price-controlled items. Cooking and sweet creams with 32% and 38% fat content are subject to price supervision, and there were reported shortages of these products in 2023.

In 2024, the cheese market in Israel continued to face challenges from the ongoing war, supply disruptions, and inflationary pressures, but with some moderation in price growth compared to 2023. Data for 2024 reflects a year marked by low economic growth (0.5-0.9% GDP) and targeted government interventions to address shortages. Israel’s per capita cheese consumption decreased slightly to approximately 17 kg annually in 2024 compared to 18,50 kg per capita in 2023.

The dairy products and alternatives market in Israel saw moderated price increases in 2024 amid tighter inflation controls. For instance, the Ministry of Agriculture approved a 4.48% average increase for price-controlled dairy items effective May 1, 2024.

Tnuva, Israel’s largest foodmaker, announced an average 3.5% hike for non-controlled products like yoghurt and cheese in May 2024.

The Israeli economy in 2024 grew sluggishly at 0.5-0.9%, impacted by the prolonged war, reduced consumer spending, and export disruptions. Inflation remained managed through controls, but food prices, including dairy, rose due to supply chain strains from the conflict. This led to higher costs passed on to consumers, though less aggressively than in 2023.

The market retained its dual structure of price-controlled (e.g., certain creams and milks) and non-controlled items. However, 2024 saw acute shortages, particularly in milk, prompting the government to slash the 40% import tariff on milk until February 2026 to boost supplies ahead of the holidays. Cheese-specific shortages were less reported, but broader dairy disruptions affected availability.

The market is transitioning from acute post-war inflation in 2023 to managed scarcity in 2024. While consumption dipped, revenue projections for cheese remained resilient at ~US$850-900m, driven by premium segment growth despite volumes. Future trends may hinge on war resolution and import efficiencies.

Some Notable Cheeses

One internationally awarded cheese of Israel is the “Emek Cheese” produced by the Emek Hebrew Dairy located in the Jezreel Valley in northern Israel.

The Emek Cheese has won numerous awards over the years, including a gold medal at the 2014 World Cheese Awards in London, UK. It is a hard cheese made from cow’s milk and has a distinct nutty flavour with a slightly sweet aftertaste.

Other notable Israeli cheeses that have won international awards include the “Sheep Milk Cheese” produced by Ein Camonim Dairy, which won a gold medal at the 2018 World Cheese Awards, and the “Ptitim Cheese” produced by Maadaney Yehiam, which won a silver medal at the same competition.

Hanoked Dairy, located in the northern community of Gilon, won gold at the 2019 Mondial du Fromage for its Leshem sheep milk cheese and silver for its Beit Hakerem goat milk cheese and at the same event, Hanan Hagaban (“Hanan the Cheesemaker”) took bronze for its Herut sheep milk cheese with sage.

Most recently, the Rom Farm from the lower Galilee won four awards at the Mondial du Fromage in France in September 2023. Their cheeses, Gefen and Tom de Galilee, secured bronze medals, while Rakia and Tal took home silver medals.

In short, Israel’s cheese industry is small but full of expression and surprise. The stain is that there is no free market. The dairy market in Israel is highly regulated by the state, which determines quotas for milk production, distribution, and pricing. This includes how much milk each dairy farm can produce, to whom it is distributed, and the price dairy farmers receive from manufacturers. Due to this regulation, the market is highly concentrated, with companies like Tnuva holding significant market shares.

Research by OpenGDP, Grok, Google and the Central Bureau of Statistics and cross-checked by VonNaftali