HS Code:
Subheading 0402.91.70 of the Harmonized System (HS) Code pertains to 'Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6% but not exceeding 10%, in powder, granules or other solid forms.' This category primarily includes powdered milk products with specific fat content used in various food processing industries, infant formula production, and direct consumption. These products are crucial in global food supply chains, particularly in regions lacking fresh milk availability or requiring long shelf-life dairy products.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
6.5%
Highest Rate
15% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as EU-NZ FTA)
Growing demand in Asia-Pacific
Increased export opportunities for major producers like New Zealand and Australia due to rising populations and urbanization in countries like China and India.
2021-2022
Shift towards organic and non-GMO products
Producers are adapting to consumer preferences for organic milk powder, leading to premium pricing and market segmentation.
2020-2022
Supply chain disruptions
Global logistics challenges and geopolitical tensions have led to fluctuating prices and delayed shipments.
2021-2022
The EU-NZ FTA, finalized in mid-2022, includes provisions for reduced tariffs on dairy products, including those under HS 0402.91.70, enhancing market access for New Zealand exporters.
July 2022
Expected to increase New Zealand’s export volume to the EU by 10-15% over the next five years.
China has ramped up imports of milk powder to meet domestic demand for infant formula and processed foods, becoming a key market for exporters.
March 2023
Significant boost for exporters like the Netherlands and New Zealand, with trade volumes rising by approximately 8% in 2023.
The USDEC has launched campaigns to promote American dairy products in Southeast Asia, focusing on quality and reliability to compete with established players.
January 2023
Potential market share growth for US exporters in emerging markets, though facing stiff competition from Oceania producers.