HS Code:
The 'Containing butterfat or other milk solids' category (often classified under HS Code 0405 or related subcodes like 0405.10 for butter) includes dairy products such as butter, dairy spreads, and other products with significant milk fat content. These products are derived from milk and are used in food preparation, baking, and direct consumption. This category is a critical segment of the global dairy trade, influenced by agricultural policies, consumer demand for dairy, and health trends.
Total Trade Volume
Approximately $15 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$3.5 billion USD
23% of total trade of total trade
Increasing
$2.8 billion USD
19% of total trade of total trade
Stable
$2.2 billion USD
15% of total trade of total trade
Increasing
$1.5 billion USD
10% of total trade of total trade
Stable
$1.2 billion USD
8% of total trade of total trade
Decreasing
Average Rate
15-20% ad valorem
Highest Rate
Up to 35% (in some Asian and African markets with dairy protection policies)
Lowest Rate
0-5% (under free trade agreements like EU-New Zealand FTA)
Rising demand for organic and grass-fed butter
Increased exports from countries like Ireland and New Zealand with strong reputations for high-quality dairy
2021-2023
Shift towards plant-based alternatives
Moderate decline in traditional butter demand in developed markets like North America and Europe
2020-2022
Growth in emerging markets
Higher imports in Asia (e.g., China, India) due to rising middle-class consumption of dairy products
2019-2023
The agreement, finalized in mid-2023, reduces tariffs on dairy products, including butter, facilitating increased exports from New Zealand to the EU market.
July 2023
Expected to boost New Zealandโs trade volume by 10-15% in the next 5 years.
Under the USMCA, Canada agreed to provide greater market access for U.S. dairy products, including those containing butterfat, easing previous trade restrictions.
January 2023
U.S. exports to Canada projected to increase by $200 million annually.
China has ramped up imports of butter and milk solids to meet domestic demand, driven by dietary shifts and urbanization.
March 2023
Significant opportunities for exporters like New Zealand and the EU, with trade volumes up by 8% year-on-year.