FTA Spurs Value-Added Dairy Export Paths, Says Prem Maan
In the wake of the India–New Zealand Free Trade Agreement (FTA), industry voices from New Zealand’s dairy sector are pointing to emerging opportunities for value-added exports, even as traditional bulk dairy access remains limited. Prem Maan, a senior industry analyst, said the pact’s structure — though not granting direct tariff cuts for core dairy imports into India — could still support value-added ingredient trade and re-export-oriented dairy processing schemes that benefit processors on both sides.
Under the agreement, while India preserved its protective stance on domestic dairy, New Zealand exporters may explore niche entry points tied to high-value products and specialised components such as certain whey concentrates, caseinates, speciality milk powders and other ingredient-level categories. These can be incorporated into value-added formulations in Indian processing plants — for products that eventually serve regional export markets or specialised food segments. The key, according to Maan, is not raw commodity access, but strategic integration in dairy value chains.
A central theme of Maan’s analysis is that India’s sheer dairy scale — largest global milk producer with an annual output exceeding 240 million tonnes — presents downstream export potential that goes beyond basic powders. Processors investing in blending, fortification and branded products can use imported ingredients to meet international compliance standards and specialised technical specifications, particularly for markets demanding consistency and functionality. The FTA’s provisions on processing and re-export give a framework for such trade flows, enabling Indian facilities to act as production hubs for high-value export lines.
This narrative contrasts with earlier headline concerns that the India–NZ FTA delivered little in terms of immediate dairy market access for New Zealand. Maan’s insight reframes the pact as a catalyst for value-chain collaboration, allowing both countries to leverage their complementary strengths: New Zealand’s advanced processing inputs and India’s scale, workforce and emerging branded dairy economy. While bulk milk and basic powder imports for domestic consumption were explicitly excluded by Indian negotiators, the agreement creates a platform for specialised trade pathways that may deepen over time.
Strategically, dairy exporters in both countries will need to align with evolving food safety, traceability and quality compliance regimes — including FSSAI standards in India and Codex/ISO standards in export destinations — to fully capitalise on the opportunities signalled by the FTA. This may also encourage further public–private partnerships and bilateral technical cooperation in areas such as membrane technologies, quality analytics and cold chain optimisation.
In summary, while the India–New Zealand FTA stopped short of opening India’s domestic milk market, it may indirectly support value-added dairy exports through re-export and processing-linked provisions. Industry analysts like Prem Maan view this as a pragmatic path forward — one that relies on strategic collaboration, targeted product design and export-oriented processing investments rather than tariff liberalisation alone.
Source : DAirynews7x7 Dec 25th 2025 Read full story here
