HS Code:
The product category under HS subheadings 0401.40.25, 0401.50.25, 0403.90.16, and 2105.00.20 pertains to dairy products, specifically certain types of milk, cream, buttermilk, and ice cream. Subheadings 0401.40.25 and 0401.50.25 cover milk and cream with specific fat content, not concentrated or sweetened, often subject to tariff rate quotas (TRQ). Subheading 0403.90.16 includes buttermilk, curdled milk, and other fermented dairy products, while 2105.00.20 covers ice cream and similar frozen desserts. These products are integral to the global food and beverage industry, with significant demand in both developed and emerging markets for direct consumption and as ingredients in processed foods.
Total Trade Volume
Approximately $5.2 billion USD
Data from 2022
Source
United Nations Comtrade Database and World Trade Organization (WTO) Statistics
$1.1 billion USD
21.2% of total trade of total trade
Increasing
$850 million USD
16.3% of total trade of total trade
Stable
$720 million USD
13.8% of total trade of total trade
Increasing
$600 million USD
11.5% of total trade of total trade
Stable
$550 million USD
10.6% of total trade of total trade
Increasing
Average Rate
15.5% ad valorem
Highest Rate
35% (applied by certain developing countries under protective agricultural policies)
Lowest Rate
0% (under free trade agreements like EU-New Zealand FTA or USMCA)
Rising demand for premium dairy products
Increased exports of high-fat cream and specialty ice cream to affluent markets in Asia and the Middle East
2021-2022
Shift towards plant-based alternatives
Moderate decline in traditional dairy product demand in developed markets like North America and Europe
2020-2022
Growth in emerging markets
Significant increase in imports of milk and cream products in countries like China and India due to urbanization and dietary shifts
2019-2022
The agreement, finalized in mid-2022, includes provisions to increase dairy export quotas for New Zealand into the EU, reducing tariffs on milk and cream products.
July 2022
Expected to boost New Zealand’s export volume by 10-15% over the next five years.
The United States adjusted TRQs for dairy imports under subheadings 0401.40.25 and 0401.50.25, increasing access for certain trading partners under USMCA.
January 2023
Likely to increase competition in the US market for Canadian and Mexican dairy exporters.
China reported a 20% increase in imports of milk and cream products in 2022, driven by growing middle-class demand for Western-style diets.
December 2022
Creates new opportunities for major exporters like New Zealand and Germany to expand market share.