China unilaterally lowers cheese tariffs

04c21a36-d13a-45b3-9632-1e7df87d6231articleimage.jpg

29 Nov 2017 --- China is unilaterally lowering its cheese tariffs from 12 percent to 8 percent, effective from December 1, 2017. The move will immediately boost US export competitiveness in China and help US suppliers take a larger role in meeting the nation’s booming cheese demand.

“We are very pleased with China’s decision because it will help US cheese exporters and manufacturers chip away the tariff disadvantage with other competitors,” says Tom Vilsack, president and chief executive officer, US Dairy Export Council (USDEC). “We are even more pleased that the process that yielded the decision helped to further cultivate trust and build critical relationships between the US dairy industry and Chinese official institutions, the nation’s dairy industry and customers.”

The reduction is part of a broader package of tariff cuts on food and consumer goods China announced last week to bolster consumer choice. But cheese was included among those products only because of three years of bridge-building efforts led by USDEC.

USDEC’s China Dairy Tariff Initiative, which began in early 2014, focused on working with Chinese authorities to analyze the mutual benefits that would flow from China unilaterally lowering its tariffs on certain dairy products.

Over the last decade, China’s cheese imports soared more than seven-fold to nearly 100,000 metric tons. Already a top-10 cheese buyer, it is on pace to become the largest cheese importer in the world in the coming years.

At the same time, US suppliers have been losing market share, in part due to unfavorable tariff rates vs. competitors.

“We took a proactive response to address the competitive disadvantage our exports were facing,” says Jaime Castaneda, USDEC senior vice president, trade policy. “USDEC recognizes that the US remains at a disadvantage not only in China but in other countries when it comes to tariffs due to lack of US free trade agreements. We are committed to finding ways to recoup that competitive disadvantage.”

In addition to four HS Codes covering cheese, the Chinese tariff changes also reduced duties on two categories of products containing dairy ingredients. Hydrolyzed protein formula for people with special nutritional needs (HS 2106.90.90) was lowered from 20 percent to zero, and prepackaged infant foods (HS 1901.10.90) was lowered from 15 percent to 2 percent. Moving forward, USDEC plans to continue working with China to further reduce tariffs on cheese as well as other dairy products.

“These types of international relationships will be critical to future U.S. dairy export growth and to achieving The Next 5 percent,” said Vilsack.

The Next 5 percent is USDEC’s name for the industrywide effort to expand U.S. dairy exports from the equivalent of about 15 percent of annual US milk solids to 20 percent.

To contact our editorial team please email us at editorial@cnsmedia.com

Related Articles

Food Ingredients News

Food loss challenge: Rabobank’s start-up shortlist to help reduce food loss in Asia

15 Oct 2018 --- Rabobank is tackling the issue of food loss throughout the supply chain by focusing on holistic solutions and is running a competition where start-ups pitch their ideas to reduce food loss to food and agri industry leaders and investors. Through the Food Loss Challenge Asia, Rabobank aims to look for solutions to curb food loss from farm to market and is asking start-ups “Do you have an existing tech-based solution that reduces food loss from farm to market in Asia?”

Food Ingredients News

Danone to use Nutri-Score labels on fresh dairy products in Belgium

15 Oct 2018 --- Danone is to pioneer a color-coded food labeling system on all its fresh dairy products in Belgium. The French multinational food-products corporation is getting ahead of a government-backed voluntary scheme for food products which sees the Belgium health ministry encouraging better nutritional labeling. The Nutri-Score systems come at the time when consumers are paying much more attention to what they eat and is in line with Innova Markets Insights' top trend for 2018 – “Mindful Choices” – the increasingly thoughtful consumer continues to catalyze changes in the way that companies produce, package and label their products.

Food Ingredients News

Chr. Hansen acquires dairy ingredient supplier Hundsbichler, raises organic growth targets

15 Oct 2018 --- Chr. Hansen is further expanding its enzyme production and presence into the traditional segments of specialty cheeses, with the newly announced acquisition of the assets of Austrian-based ingredient supplier Österreichische Laberzeugung Hundsbichler GmbH. Hundsbichler products are widely recognized for high quality and the purchase will enable Chr. Hansen to offer cheesemakers a second-to-none product portfolio in the animal rennet space, according to the company. Separately, the company announced that it had achieved all the overall financial targets set at the beginning of the year and raised its ambitions 9-11 percent organic growth for next year.

Food Ingredients News

What’s in a name? Most consumers understand the difference between real milk and alternatives, says new survey

12 Oct 2018 --- A new survey exploring how consumers comprehend the difference between milk and non-dairy alternatives reveals that most people are actually not confused at all. The International Food Information Council (IFIC) Foundation shows a low level of consumer confusion over nomenclature and basic differences between the two. This comes at a time when the US Food and Drug Administration (FDA) is considering a proposal to provide greater clarity on the appropriate labeling of plant-based alternatives.

Food Ingredients News

Indian ventures: Alland & Robert and Sayaji collaborate on acacia gum production

12 Oct 2018 --- S.D.P.A., the holding company which owns French leader in natural gums Alland & Robert, is partnering with Indian-based company Sayaji Industries Limited (Sayaji) to form a joint venture. The main goal of this collaboration is to manufacture locally and supply spray dried acacia gum for the growing Indian market.

More Articles