HS Code:
This category includes milk and cream, whether fluid or frozen, fresh or sour, with a butterfat content by weight of over 6% but not exceeding 45%. It falls under Harmonized System (HS) subheadings 0401.40.25, 0401.50.25, and 0403.90.16. These products are typically used in dairy processing for products like butter, cheese, and other dairy derivatives, or consumed directly after processing. Trade in this category is influenced by factors such as dairy production capacity, consumer demand for high-fat dairy products, and stringent sanitary and phytosanitary regulations across countries.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$300 million USD
12% of total trade of total trade
Stable
$250 million USD
10% of total trade of total trade
Decreasing
Average Rate
15% ad valorem
Highest Rate
35% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements such as EU-New Zealand FTA)
Growing demand for high-fat dairy in Asia-Pacific
Increased exports from major producers like New Zealand and the EU to countries like China and South Korea
2021-2022
Shift towards sustainable dairy production
Countries with stricter environmental regulations may face higher production costs, affecting export competitiveness
2020-2022
Fluctuations in feed prices
Higher feed costs in 2022 led to reduced profit margins for dairy exporters, particularly in the US and EU
2022
The agreement, finalized in mid-2022, includes reduced tariffs on dairy products, boosting New Zealand's export potential to the EU market for milk and cream products.
July 2022
Expected to increase trade volume by 10-15% over the next 5 years for this category.
China revised its import policies in early 2023, increasing quotas for high-fat dairy products to meet domestic demand for premium dairy goods.
February 2023
Significant growth in exports from major suppliers like New Zealand and the Netherlands to China.
The US revised certain export restrictions in 2022, aligning with international SPS standards, allowing for greater market access to Latin American countries.
October 2022
Potential for a 5-8% increase in US exports of milk and cream products in this category.