Argentina Cheese Export Market -- HS Code 0406 Trade Data & Price Trend (Q2 2025)

Argentina Cheese Export (HS 0406) Key Takeaways

Argentina's cheese exports under HS Code 0406 in Q2 2025 are dominated by fresh cheese, a high-volume commodity, with premium processed varieties offering higher margins. Shipments declined sharply from April to June, reflecting market volatility likely tied to regulatory changes and demand shifts. Brazil is the top destination, absorbing nearly half of exports, signaling heavy reliance on a single market. This analysis, covering Q2 2025, is based on cleanly processed Customs data from the yTrade database.

Argentina Cheese Export (HS 0406) Background

What is HS Code 0406?

HS Code 0406 covers cheese and curd, a staple in global food consumption and processing industries. This category is driven by consistent demand from retail, foodservice, and manufacturing sectors, particularly for products like Argentina's cheese exports. The stability of global dairy trade ensures its significance in international markets.

Current Context and Strategic Position

Recent updates to the Harmonized Tariff Schedule of the United States (2025) highlight ongoing adjustments to trade classifications, including dairy products like HS Code 0406 [USITC]. Argentina's cheese export sector remains strategically important due to its competitive production costs and established trade relationships. Monitoring hs code 0406 trade data is critical, as shifts in tariff policies or global demand could impact Argentina's market position. Vigilance is essential to navigate these dynamics effectively.

Argentina Cheese Export (HS 0406) Price Trend

Key Observations

Argentina's cheese export trend under HS code 0406 saw a sharp decline in Q2 2025, with export value dropping from 86.91 million USD in April to 36.24 million USD in June, indicating a significant contraction in trade activity during the period.

Price and Volume Dynamics

The hs code 0406 value trend declined steadily from January to March 2025, falling from 91.22 million USD to 75.64 million USD, before a brief rebound in April to 86.91 million USD. This volatility aligns with the Harmonized Tariff Schedule revision by the USITC in March 2025 [USITC], which may have disrupted trade patterns through updated duty structures or compliance requirements. The subsequent sharp drop in May and June points to ongoing market adjustments, potentially driven by reduced international demand or competitive pressures in the dairy sector, rather than seasonal factors alone.

Argentina Cheese Export (HS 0406) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, Argentina's export of cheese under HS Code 0406 in Q2 2025 is heavily concentrated in fresh cheese, specifically the sub-code for 'Dairy produce; fresh cheese (including whey cheese), not fermented, and curd'. This single product accounts for over half of the total export value and weight, establishing it as the clear market leader. Its unit price of 18.00 USD per kilogram is broadly in line with the category average, confirming its role as a high-volume, standardized commodity export.

Value-Chain Structure and Grade Analysis

The remaining exports are split into two main groups. The first consists of other non-grated, non-powdered cheeses, which form a large secondary tier with unit prices clustering tightly between 17.10 and 20.00 USD/kg. The second, smaller group includes more processed forms like grated or powdered cheese and distinct varieties like blue-veined cheese, which command a noticeable price premium of 24.21 to 25.99 USD/kg. This structure shows Argentina's HS Code 0406 trade data is dominated by bulk, fungible commodities, with a smaller segment of differentiated, higher-value products.

Strategic Implication and Pricing Power

For exporters, this market structure means pricing power is largely tied to volume and cost efficiency for the dominant fresh cheese segment. The real strategic opportunity for Argentina's HS Code 0406 export growth lies in the premium tier, where developing more processed and specialty cheeses could capture higher margins and diversify market reliance away from bulk commodity trade.

Table: Argentina HS Code 0406) Breakdown Details (Source: yTrade)

Check Detailed HS Code 0406 Breakdown

Argentina Cheese Export (HS 0406) Destination Countries

Geographic Concentration and Dominant Role

Brazil is the dominant destination for Argentina's cheese exports in Q2 2025, accounting for 46.15% of the value and 47.33% of the weight shipped. The value share is slightly lower than the weight share, suggesting that cheese sent to Brazil may be more focused on bulk or standard varieties, with a lower value per kilogram. The high frequency of shipments at 36.33% indicates regular, possibly daily or weekly logistics, which is common for perishable goods like fresh cheese to ensure quality.

Destination Countries Clusters and Underlying Causes

The export markets for Argentina's cheese can be grouped into three clusters based on trade patterns. The volume cluster includes Brazil, Chile, and Russia, with high weight and value shares, pointing to large-scale bulk cheese consumption or processing hubs. The high-yield cluster consists of Paraguay, China Taiwan, Indonesia, and Vietnam, where value shares exceed weight shares, indicating demand for premium or specialized cheeses that command higher prices. The transactional cluster features Brazil, Paraguay, and Uruguay, with elevated frequency shares, likely due to proximity driving frequent, small shipments for fresh cheese distribution to retail or food service sectors.

Forward Strategy and Supply Chain Implications

To optimize Argentina's cheese export strategy, focus on enhancing logistics for high-frequency routes to nearby countries like Brazil and Uruguay to maintain freshness. Prioritize marketing higher-value cheese varieties to high-yield markets such as China Taiwan and Indonesia to capture better margins. Analyzing HS Code 0406 trade data shows that supply chains should remain agile to handle perishability, with no significant policy shifts from the news context affecting Q2 2025 trends.

Table: Argentina Cheese (HS 0406) Top Destination Countries (Source: yTrade)

Get Complete Destination Countries Profile

Action Plan for Cheese Market Operation and Expansion

• Optimize logistics for high-frequency routes to Brazil and Uruguay. Use hs code 0406 trade data to schedule frequent, smaller shipments. This maintains product freshness and reduces spoilage risks in the Cheese supply chain.
• Shift production focus toward grated, powdered, and blue-veined cheeses. Target high-yield markets like China Taiwan and Indonesia. This captures higher margins for Argentina's Cheese Export and diversifies away from bulk commodity reliance.
• Implement agile cold-chain protocols for all export routes. Monitor real-time hs code 0406 trade data for shipment frequency and volume. This ensures supply security and product quality for perishable goods.
• Analyze buyer frequency data to identify key distributors in transactional clusters. Tailor shipment sizes and schedules to their purchasing cycles. This prevents inventory overstock and strengthens relationships in the Cheese supply chain.

Take Action Now —— Explore Argentina Cheese Export Data

Frequently Asked Questions

Q1. What is driving the recent changes in Argentina Cheese Export 2025 Q2?

Argentina's cheese exports declined sharply in Q2 2025, dropping from 86.91 million USD in April to 36.24 million USD in June. This volatility aligns with regulatory changes and reduced international demand, particularly for bulk commodity cheeses.

Q2. Who are the main destination countries of Argentina Cheese (HS Code 0406) 2025 Q2?

Brazil dominates Argentina's cheese exports, accounting for 46.15% of the value and 47.33% of the weight. Secondary markets include Chile, Russia, and high-yield destinations like China Taiwan and Indonesia.

Q3. Why does the unit price differ across destination countries of Argentina Cheese Export?

Price differences stem from product specialization: bulk fresh cheese trades at ~18.00 USD/kg, while premium varieties like blue-veined or grated cheese command 24.21–25.99 USD/kg. High-yield markets favor these pricier options.

Q4. What should exporters in Argentina focus on in the current Cheese export market?

Exporters should prioritize logistics for high-frequency routes (e.g., Brazil) to maintain freshness and expand premium cheese offerings to high-yield markets like Indonesia to capture better margins.

Q5. What does this Argentina Cheese export pattern mean for buyers in partner countries?

Buyers in Brazil benefit from reliable bulk supply, while those in high-yield markets gain access to specialty cheeses. Proximity-driven markets (e.g., Uruguay) receive frequent, smaller shipments of fresh cheese.

Q6. How is Cheese typically used in this trade flow?

Argentina’s cheese exports are primarily bulk fresh cheese for mass consumption or processing, supplemented by premium varieties like grated or blue-veined cheeses for niche markets.

Detailed Monthly Report

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