HS Code:
The category 'Containing 0.5 percent or less by weight of butterfat' typically falls under HS Code 0401.10 or related subcategories, which includes milk and cream, not concentrated nor containing added sugar or other sweetening matter, with a butterfat content of 0.5% or less by weight. This category primarily covers low-fat or skimmed milk products that are widely traded globally for both direct consumption and as ingredients in food processing industries. These products are essential in markets prioritizing low-fat dairy options due to health consciousness and dietary preferences.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database
$450 million USD
18% of total trade of total trade
Increasing
$400 million USD
16% of total trade of total trade
Stable
$350 million USD
14% of total trade of total trade
Increasing
$300 million USD
12% of total trade of total trade
Stable
$250 million USD
10% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
15% (applied by certain developing countries to protect domestic dairy industries)
Lowest Rate
0% (under free trade agreements like EU Single Market or USMCA)
Rising demand for low-fat dairy products
Increased exports from major dairy-producing countries as health-conscious consumer bases grow in Asia and North America
2021-2022
Sustainability focus in dairy production
Countries with sustainable farming practices (e.g., Netherlands, New Zealand) gain competitive advantage in eco-conscious markets
2020-2022
Fluctuating feed costs impacting production
Higher production costs in some regions lead to reduced export competitiveness, especially for smaller producers
2022
The European Union revised export quotas for low-fat dairy products to meet rising demand in Asian markets, particularly China and South Korea.
March 2023
Expected to boost trade volumes for EU exporters like Germany and France by 10-15% in the next fiscal year.
Under the USMCA agreement, tariffs on low-fat dairy products between the US, Canada, and Mexico were further reduced, facilitating smoother trade flows.
January 2023
Increased market access for US exporters, potentially raising their trade share by 5% in North American markets.
New Zealand faced logistical disruptions and higher production costs, leading to a temporary dip in low-fat dairy exports.
July 2023
Reduced trade volume by approximately 8%, opening opportunities for competitors like the US and EU.