HS Code:
This category includes butter, and fresh or sour cream containing over 45 percent by weight of butterfat, classified under Harmonized System (HS) subheadings 0401.50.75 (cream), 0403.90.78 (sour cream), and 0405.10.20 (butter). These products are high-fat dairy items widely used in food processing, baking, and direct consumption. Global trade in these products is influenced by factors such as dairy production capacity, consumer demand for premium dairy products, and trade agreements or restrictions related to agricultural goods. Major producers are typically countries with strong dairy industries, while importers are often nations with limited domestic production or high demand for specialty dairy products.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$1.8 billion USD
34.6% of total trade of total trade
Increasing
$1.2 billion USD
23.1% of total trade of total trade
Increasing
$0.8 billion USD
15.4% of total trade of total trade
Stable
$0.5 billion USD
9.6% of total trade of total trade
Stable
$0.4 billion USD
7.7% of total trade of total trade
Decreasing
Average Rate
12.5% ad valorem
Highest Rate
Up to 35% (applied by certain developing countries to protect domestic dairy industries)
Lowest Rate
0% (under free trade agreements like EU-New Zealand FTA or USMCA)
Rising demand for high-fat dairy in Asia-Pacific
Increased exports to countries like China and South Korea, driven by growing consumer preference for butter and cream in baking and Western-style diets.
2021-2023
Sustainability concerns in dairy production
Pressure on exporters to adopt eco-friendly practices, influencing production costs and trade competitiveness, especially in the EU market.
2020-2023
Fluctuating global milk prices
Volatility in raw material costs affects butter and cream pricing, impacting export volumes and profitability for major exporters like New Zealand.
2022-2023
The agreement, finalized in mid-2023, reduces tariffs on dairy products, including butter and cream, facilitating greater market access for New Zealand exporters to the EU.
July 2023
Expected to increase New Zealandโs export volume to the EU by 15-20% over the next five years.
The United States adjusted its TRQs for dairy imports under the USMCA in 2023, allowing increased imports of butter and cream from Canada and Mexico at lower duty rates.
January 2023
Moderate increase in North American trade flows, benefiting Canadian exporters.
China reported a significant increase in butter and cream imports in 2022, driven by demand in the food service and bakery sectors post-COVID recovery.
December 2022
Boosted export revenues for major suppliers like New Zealand and Ireland, with a projected 10% annual growth in exports to China.