HS Code:
The 'Containing over 10 percent by weight of milk solids' category, typically classified under various HS codes such as 0402.10 or 0402.21 depending on specific product forms (e.g., milk powder, skimmed or whole), includes dairy products with a significant milk solid content. These products are widely used in food processing, confectionery, and as nutritional supplements. This category encompasses items like milk powder, cream powder, and other concentrated dairy forms, which are critical in global food supply chains due to their long shelf life and versatility.
Total Trade Volume
USD 15.3 billion
Data from 2022
Source
United Nations Comtrade Database
USD 4.2 billion
27.5% of total trade
Increasing
USD 2.1 billion
13.7% of total trade
Stable
USD 1.8 billion
11.8% of total trade
Increasing
USD 1.5 billion
9.8% of total trade
Stable
USD 1.2 billion
7.8% of total trade
Decreasing
Average Rate
15.4%
Highest Rate
35% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as EU-NZ FTA)
Rising demand for milk powder in Asia-Pacific
Increased export opportunities for major producers like New Zealand and Australia, driven by population growth and urbanization in countries like China and India.
2021-2022
Shift towards organic and non-GMO dairy products
Growing consumer preference for sustainable and natural products is pushing exporters to certify and market organic milk solids, influencing pricing and supply chains.
2020-2022
Impact of climate change on dairy production
Extreme weather events and changing agricultural conditions are affecting milk production in key exporting regions, leading to supply volatility and price fluctuations.
2019-2022
The EU-NZ FTA, finalized in mid-2022, includes provisions to reduce tariffs on dairy products, including those containing over 10% milk solids, over a phased period.
July 2022
Expected to boost New Zealand's dairy exports to the EU by reducing tariff barriers, potentially increasing trade volume by 10-15% over the next five years.
China announced an increase in dairy import quotas in early 2023 to meet domestic demand, particularly for milk powder used in infant formula production.
February 2023
Significant opportunity for exporters like the US and New Zealand to capture a larger share of the Chinese market, with trade volumes projected to rise by 8% in 2023.
A dispute under the USMCA regarding Canada's dairy tariff-rate quotas was resolved in 2022, with Canada agreeing to provide greater market access for US dairy products.
May 2022
US exporters of milk solids are expected to see a moderate increase in exports to Canada, strengthening North American dairy trade integration.