HS Code:
This category, classified under HS Code 1901.90.43 (or similar depending on specific national tariff schedules), pertains to dry mixtures containing less than 31% by weight of butterfat, with specific compositional requirements including at least 17.5% by weight each of sodium caseinate, butterfat, whey solids (containing over 5.5% butterfat), and dried whole milk. It excludes mixtures with dried milk, dried whey, or dried buttermilk containing 5.5% or less butterfat by weight. These mixtures are typically used in food processing for products like baked goods, desserts, and dairy-based beverages, offering a balance of dairy proteins and fats for texture and flavor enhancement.
Total Trade Volume
Approximately $250 million USD
Data from 2022
Source
UN Comtrade Database and ITC Trade Map
$80 million USD
32% of global trade of total trade
Increasing
$60 million USD
24% of global trade of total trade
Stable
$40 million USD
16% of global trade of total trade
Increasing
$30 million USD
12% of global trade of total trade
Stable
$20 million USD
8% of global trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
12% (applied by certain developing economies with dairy protection policies)
Lowest Rate
0% (under free trade agreements like USMCA and EU-New Zealand FTA)
Rising demand for processed food ingredients
Increased imports in emerging markets like India and Southeast Asia due to growth in bakery and confectionery industries
2021-2022
Shift towards plant-based alternatives
Moderate decline in demand in developed markets as consumers opt for vegan or lactose-free substitutes
2020-2022
Sustainability focus in dairy supply chains
Exporters like New Zealand and the Netherlands are adopting eco-friendly production practices, influencing buyer preferences
2022
The European Union revised its tariff-rate quotas for dairy-based mixtures, increasing access for exporters from New Zealand under the EU-NZ Free Trade Agreement.
July 2023
Expected to boost trade volumes by 10-15% for New Zealand exporters in the short term.
A panel ruling under the USMCA addressed Canadian dairy import restrictions, potentially easing access for US exporters of dry dairy mixtures.
January 2022
May increase US exports to Canada by $5-10 million annually in this category.
Countries like China and South Korea implemented stricter sanitary and phytosanitary measures for imported dairy products due to food safety concerns.
March 2023
Could lead to temporary trade disruptions and increased compliance costs for exporters.