The Dairy Companies Association of New Zealand (DCANZ) noted that while some tariff relief exists, it applies mainly to small-volume, high-value dairy items like bulk infant formula and specific protein products rather than bulk commodities. This means the bulk of NZ’s dairy exports continue to face significant duties into India’s rapidly growing market, limiting the immediate commercial benefit for large-scale suppliers and commodity producers.

The agreement does include a one-year review mechanism and a pledge that India will negotiate further with New Zealand if it grants better access to dairy exporters through other future trade agreements. While this provision offers a glimmer of future opportunity, industry leaders stress the importance of clear drafting to ensure it can be effectively invoked to secure meaningful market access down the line.

DCANZ executive director Kimberly Crewther expressed cautious optimism but underscored that bureaucratic red tape has limited practical use of existing tariff reductions on dairy destined for re-export. She and others in the sector warned that without detailed implementation rules and genuine reductions on bulk dairy tariffs, the FTA’s impact on New Zealand’s largest export category will remain muted.