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Tnuva may say it makes almost nothing off its cottage cheese sales, but it turns out it has some customers who pay a lot less than the rest of us. The firm sells cottage cheese to the Israel Defense Forces for NIS 3.84 per 250-gram container, including value-added tax. Supermarket chains pay NIS 5.20 for the exact same product - 35% more. Tnuva won the Defense Ministry tender to supply cottage cheese.

Cottage cheese prices have risen 39% in recent years, and consumers recently organized a boycott of the product over Facebook.

Retailers, which sell cottage cheese for NIS 7 to NIS 7.50, have reported a big drop in demand. Most chains have launched big specials since the boycott started, so cottage cheese can now be found for NIS 4.50 to NIS 5.50 per container.

Tnuva said it won a small part of the Defense Ministry tender two years ago to supply 600 tons of cottage cheese a year. It has no costs of transport, logistics, shelf arranging, advertising, storage, or product returns. It is not the same product and comparisons of are invalid, Tnuva said.