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It makes the dressing component of the product more white (no one wants an off-white, yellowish cottage cheese). We've since removed it along with a lot of other additives in a push for a cleaner ingredient label.
We were getting new vinyl siding installed on our house, and the salesman was trying to upsell us to the premium siding, and apparently TD is used as a hardening agent in vinyl. He goes "This brand has TWICE the titanium dioxide as the other brands on the market. You know what that is?"
And I go "Yep, we add it to cottage cheese at the dairy plant I work in."
The look on his face was priceless 
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