HS Code:
The category under HS Codes 0403.90.45 and 0404.10.90 primarily includes specific dairy products such as buttermilk, curdled milk and cream, kephir, and other fermented or acidified milk and cream products, as well as whey and modified whey products, whether or not concentrated or containing added sugar or other sweetening matter. These subheadings cover products often used in food processing, animal feed, and direct consumption. They are significant in the global dairy trade due to their versatility and nutritional value.
Total Trade Volume
USD 2.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 600 million
24% of total trade of total trade
Increasing
USD 450 million
18% of total trade of total trade
Stable
USD 400 million
16% of total trade of total trade
Increasing
USD 300 million
12% of total trade of total trade
Stable
USD 250 million
10% of total trade of total trade
Increasing
Average Rate
6.5% ad valorem
Highest Rate
25% (applied by certain developing countries with protective dairy policies)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for whey protein in health and fitness sectors
Increased export volumes to markets in Asia and North America, particularly for whey concentrates used in sports nutrition
2021-2022
Shift towards sustainable dairy production
Exporters adopting eco-friendly practices gain competitive advantage in markets with stringent environmental regulations
2020-2022
Growing use of fermented dairy in functional foods
Boost in trade for kephir and other probiotic-rich products, especially in health-conscious regions like Europe
2019-2022
The European Union finalized a trade agreement with several Asian countries to reduce tariffs on dairy products, including those under HS 0403.90.45 and 0404.10.90, to promote export growth.
March 2023
Expected to increase EU exports by 15% to Asian markets over the next five years
Under the USMCA, Canada agreed to expand tariff-rate quotas for U.S. dairy products, including whey and fermented milk products, easing market access.
January 2023
U.S. exporters anticipate a 10% rise in trade volume to Canada in these categories
New Zealand introduced a national certification for sustainable dairy production, impacting whey and buttermilk exports under these HS codes.
July 2022
Enhanced market access to environmentally conscious markets like the EU, potentially increasing trade share by 5%