HS Code:
This category (HS Code: 0402.10) includes milk and cream, in powder, granules, or other solid forms, with a fat content by weight not exceeding 1.5%. These products are typically skimmed milk powders used in various food processing industries, including bakery, confectionery, and infant formula production. They are valued for their long shelf life and ease of transport compared to liquid milk.
Total Trade Volume
USD 5.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
15%
Highest Rate
35% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as EU internal trade or USMCA)
Rising demand in developing countries
Increased exports to Asia and Africa due to growing populations and urbanization, driving demand for affordable protein sources like skimmed milk powder.
2021-2022
Shift toward plant-based alternatives
Moderate decline in demand in developed markets as consumers opt for non-dairy milk powders, impacting traditional dairy exporters.
2020-2022
Sustainability focus
Producers adopting eco-friendly practices and certifications to meet consumer and regulatory demands, influencing production costs and trade dynamics.
2022
The European Union relaxed export quotas for skimmed milk powder to stabilize global supply amidst shortages in key importing regions.
March 2023
Increased export volumes from EU countries like Germany and France, potentially lowering global prices in the short term.
Phase 1 of the US-China trade deal included commitments to purchase US dairy products, boosting skimmed milk powder exports to China.
January 2023
Strengthened US market share in Asia, with potential for long-term growth in trade volume.
Severe drought conditions in New Zealand led to reduced milk production, impacting skimmed milk powder output and exports.
February 2023
Temporary supply shortages and price spikes globally, benefiting competitors like the US and EU.