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📦 Cheddar cheese, and cheese and substitutes for cheese containing, or processed from, Cheddar cheese

Cheddar cheese, and cheese and substitutes for cheese containing, or processed from, Cheddar cheese

HS Code:

📦

Overview

The Cheddar cheese category, including cheese and substitutes for cheese containing or processed from Cheddar cheese (HS Code: 0406.90.10), encompasses a wide range of dairy products primarily made from cow's milk. Cheddar cheese is one of the most popular cheese varieties globally, known for its sharp taste and firm texture. This category includes both natural Cheddar cheese and processed products or substitutes that use Cheddar as a base. These products are widely used in culinary applications, snacks, and processed foods. Global trade in this category is driven by demand for high-quality dairy products, regional production capabilities, and consumer preferences for cheese in both developed and emerging markets.

Total Trade Volume

Approximately $5.2 billion USD

Data from 2022

Source

United Nations Comtrade Database and International Trade Centre (ITC)

Tariff Analysis

Average Rate

12.5%

Highest Rate

35% (imposed by certain developing countries to protect local dairy industries)

Lowest Rate

0% (under free trade agreements like EU-UK Trade and Cooperation Agreement)

Common Restrictions

  • Import quotas to protect domestic dairy markets
  • Stringent sanitary and phytosanitary (SPS) requirements
  • Labeling and origin certification requirements
  • High tariffs in non-FTA countries

Market Trends

Growing demand for organic and specialty Cheddar cheese

Increased export opportunities for producers focusing on premium and niche products, especially in North America and Europe

2021-2023

Rising popularity of plant-based cheese substitutes

Moderate competition for traditional Cheddar cheese, particularly in vegan and health-conscious markets

2020-2023

Supply chain disruptions due to geopolitical tensions

Temporary trade slowdowns and increased costs for exporters in affected regions

2022

Recent Developments

USMCA Impact on Dairy Trade

The United States-Mexico-Canada Agreement (USMCA) has facilitated greater market access for U.S. Cheddar cheese exporters to Canada, with reduced tariffs and increased quotas.

July 2020 (ongoing impact through 2023)

Boosted U.S. exports to Canada by approximately 15% since implementation.

Brexit Trade Agreements for UK Cheese

Post-Brexit trade deals, particularly with Australia and New Zealand, have opened new markets for UK Cheddar cheese exporters, though EU trade faces increased friction due to customs checks.

January 2021 (ongoing)

Mixed impact with growth in non-EU markets but challenges in maintaining EU export volumes.

EU Dairy Sustainability Regulations

New EU regulations under the Green Deal impose stricter sustainability and animal welfare standards on cheese production, affecting both domestic producers and importers.

March 2023

Potential cost increases for non-compliant exporters but opportunities for those meeting higher standards.