NCM and Markets

The Brazilian meals and fats market has gained greater international recognition, with the addition of a new vertical, the blood derivatives of animal origin, to the Brazilian Renderers 2019-2021 Project.

What is NCM SH?
The NCM represents a nomenclature that identifies eight-digit codes for various products, ranging from: products of animal origin, such as milk, textiles and metals.

This classification was determined after the creation of Decree No. 1568 of the Common Nomenclature of Mercosur – NCM, in 1995. This creation considered aspects of the codification method known as the Harmonized Commodity Designation and Coding System (SH).

NCM SH is an international commodity specification. It consists of codes describing specific characteristics of the products.

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The recognition of the benefits of using raw materials of animal origin in the composition of products has provoked a movement of diffusion in the consumer markets of the products of rendering. Initially, the sector manufactured products for animal nutrition. Although it is still the main market today, other sectors take advantage of its benefits, such as pet food, hygiene and cleaning, chemicals, biofuels and several others.

Meals and fats of animal origin are ingredients for soaps, detergents, cosmetics, tires, animal feed, fertilizers, biodiesel and an infinity of items that we use daily. The consumption of meals of animal origin occurs, notably, in the animal production chain itself, in poultry, pork and fish diets, with poultry being responsible for consuming most of the meals intended for animal production.  The food for our companion animals, dogs, cats and others, consumes the fish, poultry and meat and bone meal of cattle. It is important to inform that it is forbidden to use animal meals and fats in the feeding of ruminants (oxen, cows, buffaloes, sheep and goats). These animals should be fed only with grass or foods of plant origin, such as corn, soybeans and others. Meals are still used as an ingredient in the production of organic fertilizers for pastures and crops of soybeans, corn, cotton, wheat.

Fats, such as beef tallow, poultry oil, white swine grease and fish oil, go to the cosmetics and hygiene and cleaning products industry to produce: shampoos, soaps, detergents, enamels, skin creams and make-up, among others. In the petrochemical industry, animal fat is used to produce tires, paints, varnishes and lubricants, among others. Biodiesel is also produced from animal fat, a less polluting and more sustainable fuel, which moves cars, trucks and industries. Biodiesel, currently, is the main destination for fats, surpassing the hygiene and cleaning market in recent years. In Brazil, animal fats are mainly destined for the biodiesel and animal nutrition market. Tallow is the main product in this category, with a share of almost 70%, followed by Poultry Oil, with around 24%. Together these two products account for more than 90% of Brazilian production:

The Biodiesel market, for example, went from the 3rd largest consumer of fats in 2010 to the main destination in 2014, remaining in that position in 2016. That year, around 5.16 million tons of animal meals and fats were destined, the main destination being animal nutrition.