HS Code:
The category under HS subheadings 0404.90.50, 1901.10.56, 1901.10.66, 1901.90.62, 1901.90.65, and 2105.00.40 primarily includes dairy products, infant formula, food preparations of milk, and ice cream or other edible ice products. These subheadings cover a range of processed dairy and milk-based food items used for both direct consumption and as ingredients in other food products. This category is significant in global trade due to the essential nature of dairy in diets worldwide, coupled with varying production capacities and dietary preferences across regions.
Total Trade Volume
Approximately $15.2 billion USD
Data from 2022
Source
United Nations Comtrade Database
$3.8 billion USD
25.0% of total trade
Increasing
$2.5 billion USD
16.4% of total trade
Stable
$1.9 billion USD
12.5% of total trade
Increasing
$1.5 billion USD
9.9% of total trade
Stable
$1.2 billion USD
7.9% of total trade
Decreasing
Average Rate
15.3%
Highest Rate
35% (applied by certain developing countries to protect local dairy industries)
Lowest Rate
0% (under free trade agreements like EU-New Zealand FTA)
Rising demand for lactose-free and plant-based dairy alternatives
Traditional dairy exporters face competition from alternative product markets, pushing innovation in product offerings.
2021-2022
Increased focus on sustainable and organic dairy production
Countries with stringent environmental regulations gain a competitive edge in markets valuing sustainability.
2020-2022
Growth in infant formula demand in Asia-Pacific
Significant export opportunities for countries like New Zealand and the Netherlands targeting emerging markets.
2019-2022
The EU and New Zealand finalized an FTA in mid-2022, reducing tariffs on dairy products, including those under these HS codes, to near zero over a phased period.
June 30, 2022
Expected to boost New Zealand's dairy exports to the EU by 20% over the next five years, intensifying competition for European producers.
Under the US-Mexico-Canada Agreement, revised in late 2021, Canada agreed to increase market access for U.S. dairy products, impacting categories like ice cream and milk preparations.
December 2021
U.S. exporters have seen a 10% increase in trade volume to Canada, though domestic Canadian producers face pricing pressures.
China introduced stricter quality and safety standards for imported infant formula under HS 1901.10, requiring foreign manufacturers to register products.
January 1, 2022
Smaller exporters face market entry barriers, while major players like New Zealand and the Netherlands strengthen their compliance and market share.