HS Code:
Subheading 0402.21.90 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%, not containing added sugar or other sweetening matter, and not elsewhere specified or included. This category primarily includes unsweetened powdered milk products used in various food processing industries, infant formula production, and direct consumption. It is a critical commodity in global dairy trade due to its long shelf life and versatility.
Total Trade Volume
USD 3.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 1.2 billion
34.3% of total trade
Increasing
USD 900 million
25.7% of total trade
Stable
USD 500 million
14.3% of total trade
Increasing
USD 400 million
11.4% of total trade
Stable
USD 200 million
5.7% of total trade
Decreasing
Average Rate
15.2%
Highest Rate
35% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as USMCA and EU-NZ FTA)
Rising demand in Asia-Pacific
Increased exports to countries like China and Indonesia due to growing populations and rising demand for dairy in food processing and infant nutrition.
2021-2022
Sustainability concerns
Growing preference for sustainably produced dairy products, pushing exporters to adopt eco-friendly practices and certifications.
2020-2022
Price volatility
Fluctuations in global dairy prices due to weather conditions, feed costs, and geopolitical tensions affecting supply chains.
2019-2022
The agreement, finalized in mid-2022, reduces tariffs on dairy products, including those under HS 0402.21.90, facilitating greater market access for New Zealand exporters to the EU.
July 2022
Expected to increase New Zealand’s export volume by 10-15% to the EU over the next five years.
China announced higher import quotas for dairy products to meet domestic demand, benefiting major exporters like New Zealand and the United States.
January 2023
Likely to boost trade volumes by 8-12% for key exporters in the short term.
The US Dairy Export Council launched a campaign to promote American dairy products in Southeast Asia, targeting products under this HS code.
March 2023
Potential market share growth for US exporters in high-demand regions.