HS Code:
The category of Dried Milk and Dried Cream, whether or not containing added sugar or other sweetening matter, classified under HS subheadings 0402.21.50 (milk and cream, not concentrated, not containing added sugar) and 0403.90.55 (buttermilk, curdled milk, and cream), represents a significant segment of the global dairy trade. These products are widely used in food processing, confectionery, and as nutritional supplements. The trade of dried milk and cream is driven by demand for shelf-stable dairy products, especially in regions with limited access to fresh dairy or in need of long-term storage solutions. Key factors influencing this market include production capacities in dairy-rich countries, fluctuating global milk prices, and trade policies or tariffs affecting dairy imports and exports.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and International Trade Centre (ITC)
$1.3 billion USD
25% of total trade of total trade
Increasing
$900 million USD
17% of total trade of total trade
Stable
$750 million USD
14% of total trade of total trade
Increasing
$600 million USD
12% of total trade of total trade
Stable
$500 million USD
10% of total trade of total trade
Increasing
Average Rate
15% ad valorem
Highest Rate
35% (imposed by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as EU-NZ FTA or USMCA)
Rising demand in Asia-Pacific
Increased exports to countries like China and Indonesia due to growing populations, urbanization, and demand for processed foods.
2021-2023
Sustainability focus
Growing consumer preference for sustainably sourced dairy products is pushing exporters to adopt eco-friendly practices, influencing trade patterns.
2022-2023
Price volatility
Fluctuations in global milk prices due to weather conditions and feed costs have led to unpredictable trade volumes and pricing strategies.
2020-2022
The recently signed EU-NZ FTA has reduced tariffs on dried milk and cream exports from New Zealand to the EU, boosting trade volumes.
July 2023
Expected to increase New Zealand’s market share in Europe by 5-7% over the next few years.
The US has introduced new export promotion programs targeting Southeast Asia, increasing shipments of dried milk products to the region.
March 2023
Strengthens US position in high-growth markets, potentially challenging competitors like New Zealand.
China has ramped up imports of dried milk and cream to meet domestic demand for dairy-based products amid a recovering post-COVID economy.
January 2023
Significant boost to global trade volumes, particularly benefiting exporters like New Zealand and the EU.