HS Code:
Subheading 0402.21.50 of the Harmonized System (HS) Code pertains to milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules, or other solid forms, of a fat content, by weight, exceeding 1.5% but not exceeding 3%. This category primarily includes specific types of powdered milk products used in various food processing industries, including bakery, confectionery, and beverage production, as well as for direct consumer use. These products are crucial in regions with limited access to fresh milk or for applications requiring long shelf life.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$350 million USD
29.2% of total trade of total trade
Increasing
$300 million USD
25.0% of total trade of total trade
Stable
$150 million USD
12.5% of total trade of total trade
Increasing
$120 million USD
10.0% of total trade of total trade
Stable
$80 million USD
6.7% of total trade of total trade
Decreasing
Average Rate
6.5% ad valorem
Highest Rate
15% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as USMCA and EU-New Zealand FTA)
Rising demand in Asia-Pacific for powdered milk products
Increased exports to countries like China and India due to growing populations and urbanization, driving demand for processed dairy products.
2021-2022
Shift towards low-fat and fortified dairy products
Manufacturers are adapting to consumer health trends by offering low-fat variants and fortified milk powders, influencing product innovation and market segmentation.
2020-2022
Sustainability and environmental concerns
Growing emphasis on sustainable dairy farming practices and carbon footprint reduction is impacting production methods and influencing trade policies.
2022
The EU and New Zealand finalized a trade agreement that includes reduced tariffs and increased quotas for dairy products, including those under HS 0402.21.50.
June 2022
Expected to boost New Zealand's exports to the EU by easing market access and reducing costs for exporters.
China has ramped up imports of powdered milk products to meet domestic demand for infant formula and processed foods, amidst local supply constraints.
March 2023
Significant growth opportunity for major exporters like New Zealand and the United States, with potential for increased trade volumes.
The US Dairy Export Council launched programs to promote American dairy products in Southeast Asia, focusing on quality and reliability of supply.
January 2023
Likely to enhance the US market share in the region, particularly for powdered milk products under this HS code.