Tnuva will increase milk carton production by 20%

Tnuva is preparing to establish another production line of milk cartons at Rehovot Dairy with an investment of NIS 40 million.

The new line, which will start operating in the second quarter of 2022, will allow milk production to increase by about 20% over the next two years.

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02/01/2022

Sunday, 02 January 2022, 20:14 Updated: Monday, 03 January 2022, 09:05

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If shortages have been created here and there on the fresh milk shelf in supermarkets over the past two years, then a new production line that Tnuva is installing at its dairy in Rehovot should solve the problem.

The investment in the sixth carton line to be established at Rehovot Dairy was approved as early as January 2021, and in recent days the infrastructure preparations at the dairy for receiving the equipment have begun.

: "In recent years we have witnessed the shift of consumers to milk consumption in cartons, while in the last two years we have faced a series of changes that have led to even higher demand for cartons, including the transition from consumers to milk cartons. Which caused the general public to stay in the country and significantly increased food consumption among the residents of Israel.

Against the background of these data, the Tnuva board of directors approved another expansion of the milk production system in cartons as early as January 2021, with the new line providing a solution to the continued increase in demand. "

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Tnuva will invest NIS 40 million in an additional production line for milk cartons (Photo: PR)

Will the operational estimates lead to disruptions?

The new line is the second production line for milk cartons that Tnuva will establish within three years, following the increase in demand and with the transition to milk consumption in cartons.

The previous production line was established at Rehovot Dairy in 2019 with an investment of NIS 35 million.

The operational assessments for the construction of the new line have begun these days and may cause spot disruptions in the coming months at Rehovot Dairy, where Tnuva milk is produced.

Accordingly, the company is preparing with additional backup solutions, to ensure a continuous supply of controlled milk, such as shifting production of fortified milk in favor of controlled milk.

Sterncast data: Graph of sales of cartons of milk in front of bags on a timeline (Photo: PR)

21% drop in demand for milk bags

According to Sterncast data, in the last 7 years the consumption of milk in bags has decreased by 21% and accordingly the consumption of cartons, bottles and jugs has increased, which currently constitute about 90% of the total milk market.

Against the background of this demand, Tnuva established a fifth production line for cartons in 2019, and the new line will be the sixth line for cartons at the dairy.

Sixth production line for Tnuva's milk cartons (Photo: PR)

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