Urucum / Annatto (Bixa orellana)

Urucum, also known as Colorau in Amazonian communities, is a fruit of the Bixa Orellana species within the Bixaceae family, native to tropical America. Globally, Urucum is more commonly known as Annatto. Amazonian Indians have used the seeds of the Annatto fruit for thousands of years for corporal paintings and remedies (DIJIGOW, 2022; FUNAI, 2022; TERRA DA GENTE, 2015).

According to Escola Botânica (botanical school), annatto is one of the most important natural dyes for foods, cosmetics, textile products, crafts, and artistic works. Whether in the form of powders, pastes, extracts, or solutions, annatto dyes allow for a wide range of colors from orange-yellow to red-brown (DIJIGOW, 2022).

The Instituto Juma affirms that Annatto contains several benefits in traditional medicine in its various forms and uses. It is a diuretic, reduces cholesterol, helps with respiratory problems, protects against UVA and UVB rays, and is also a natural insect repellent (INSTITUTO JUMA, 2024).

PRODUCT

Seeds – pigment extracted from the outside of its seeds, rich in carotenoids, is a natural dye used in the food, cosmetic, and textile industries (DAXIA, 2020). Annatto seeds are an essential raw material to obtain the pigment bixin (represents more than 80% of the total fat-soluble carotenoids), norbixin, and norbixinate, whose levels are variable according to seeds maturation (DORNELAS et al., 2015). Annatto seeds also serve a purpose in the culinary space. Annatto seasoning, made from dried and crushed seeds, is commonly used in cooking. Some types include added cornmeal, salt, and vegetable oils. (LIMA, 2022).
Using the method described by Moraes & Rabelo (1986) for mineral determination, Valerio verified that Annatto seed residues have high levels of protein, carbohydrates, fiber, and minerals and are considered a food rich in fiber and protein. The most abundant minerals found were potassium and sodium. Substantial concentrations of the amino acids lysine, isoleucine, leucine, and phenylalanine + tyrosine were found, while valine was the limiting amino acid with a chemical score of 0.22. The antinutritional factors tannins, phytic acid, and protease inhibitors were not detected (VALERIO et al., 2015).

BY-PRODUCT

Oil: A by-product is annatto oil, rich in unsaturated fatty acids, carotenoids, and vitamin E. It has anti-aging and anti-wrinkle effects and reduces blemishes and imperfections on the skin. Annatto oil is also used in cooking, hair, and body products (CONSULTA REMÉDIOS, 2024; MF RURAL, 2024; ÓLEO TERAPIA, 2024).
Textile & Cosmetics Segment: One reason that annatto is used in cosmetics is that it is comprised of a large amount of tocotrienol, a powerful antioxidant used in producing sunscreens, bronzers, and paints. Another property of annatto that makes it suitable for the cosmetics industry is its intense pigment, which is excellent for lipsticks, nail polishes, and other makeup. In addition, annatto is often used to make clothing and fabrics. Study indicates that the gel with 10% aqueous annatto extract is effective at skin healing in rats, can be used as a phytotherapy besides possessing antioxidant and antimicrobial activity, and is a non-toxic natural product (FRANKLIN,2023).

Carcass: studies show that the annatto byproduct can be included in the diet at levels up to 200 g/kg of total dry matter without affecting the intake, digestibility, weight gain, or carcass characteristics of sheep (LIMA JUNIOR, 2012).
The Brazilian Agricultural Research Corporation - EMBRAPA confirms that residues from the processing of the capsules, mainly the crushed shells, are used as organic fertilizer, mulch, and animal feed (EMBRAPA, 2009).
 

CURRENT MARKET SIZE
In 2021, Brazil produced 12,252 tons(t) of annatto, with the Amazon region contributing 18% of the national total (2,240 t). The leading Amazonian producers were the states of Pará (940 t) and Rondônia (806 t) (IBGE, 2022). In 2022, Brazil produced around 11,914 t, with Pará (908 t) and Rondônia (648 t) leading in production (IBGE, 2023). The global market for annatto was valued at USD 227.53 million in 2022 (FACT MR, 2023). According to the market research company Mordor Intelligence, North America holds the largest market share in the global annatto market, with the United States accounting for nearly 40% of global imports (MORDOR INTELLIGENCE, 2023).

PROJECTED FUTURES MARKET SIZE

The annatto market is competitive, with many national and multinational players competing for market share. Some key players in the annatto market include AICA-COLOR, Biocon del Peru, DDW, FMC, and Chr—Hansen Holding A/S, among others. Emphasis is given to mergers, expansion, acquisition, partnership, and the development of new products as strategic approaches adopted by leading companies to increase their brand presence among consumers and increase their product line and market share (MORDOR INTELLIGENCE, 2023).

This market is anticipated to reach UDS370.62 million by the end of 2032. It expects a Compound Annual Growth Rate (CAGR) of 5% from 2022 to 2032 (FACT MR, 2023).

VOLUMES SOLD/CONSUMED

From 2009, production of urucum grew by 20%, from 12,472t (2009) to 15,637t (2019). Production decreased from 2019 to 2021 (12,252t), which may have resulted from disruption caused by the Covid-19 pandemic. Despite this, the demand for natural dyes from annatto is growing (YAMEEN et al., 2024; IBGE, 2023; IBGE, 2022; IBGE, 2020; IBGE, 2010).

TRENDS IN PRICES

In 2024, the price per kilo of annatto seed could vary from BRL 13.00 to 59.90 (≅ USD 2.46 to 11.34). The cost of a kilo of annatto (seasoning) can range from BRL 10.00 to 20.00 (≅ USD 1.89 to 3.78). Annatto oil for culinary use can be purchased for BRL 47.00 per liter (≅ USD 8.90). The price of 100 ml of annatto oil for hair and body use can vary from BRL 58.90 to 89.00 (≅ USD 11.15 to 16.85) (CEREALISTA EXPRESS, 2024; MF RURAL, 2024a; MF RURAL, 2024b; MF RURAL, 2024c; ÓLEO TERAPIA, 2024; ORGANO, 2024).

HISTORY
From the Tupi-Guarani "uru'ku," which means red, the Annatto or Urucum is a fruit native to Tropical America, especially in Guyana and Brazil. Its scientific name, Bixa Orellana L, was given in honor of Francisco de Orellana (1490-1546), a Francisco Pizarro expedition member and the first Spanish explorer to navigate the Amazon River (LIMA, 2022).
In Spanish-speaking countries, it is known as 'achiote.' Brazilian Indians and Peruvians traditionally use it as a raw material for red tinctures, which are used for many purposes, including protecting the skin against the sun and from insect bites. The artisanal processes of obtaining the dyes from annatto seeds learned from the Indians, have been used for a long time (AGROSPICE, 2023).
In Brazil from the 1990s onwards, there was a drop in production and a reduction in the area planted with annatto, mainly in the state of Pará, which, until then, was the reference for production in the North and the third largest producer in Brazil, during this period, 40% of producers had replaced annatto cultivation; 27% abandoned cultivated areas; 20% reduced the cultivation area and only 13% maintained planting (POLTRONIERI & BOTELHO, 2005).

PRODUCTION SYSTEMS AND ENVIRONMENT: AGROFORESTRY, WILD HARVESTING, PLANTATION
Urucum is a medium-sized tree/shrub that can be produced for more than 20 years. The main product extracted from the Urucum trees/shrubs is bixin, a substance found in the seed cover layer (CPT, 2012). Of the pigment mass in the pericarp of annatto seeds, 80% consists of a carotenoid called bixin, which has a coloring property that can be extracted via vegetable oils or a chemical base (HABBOUBI, 2020). For commercial crops, it is crucial to use cultivars that present at least 3% bixin to be viable (FERREIRA FILHO - EMATER RO, 2021). The annatto has also been shown to be an excellent option for cultivating in agroforestry systems and is adaptable to various types of management (FABRI et al., 2016).
Native tree species such as URUCUM are suitable for reforestation, environmental preservation, urban afforestation, landscaping, or domestic planting. Reforestation, for example, involves planting forests in areas that have already been degraded, whether by time, man, or nature (IBF, 2020).
The annatto tree is a heliophilous plant that must be established in full sun. Temperatures for cultivation should preferably range between 20 °C and 26 °C, with a maximum of 36 °C to 38 °C and a minimum of 15 °C. The best soil conditions for planting are found in soils with a deep profile, well-drained, and a medium to clayey texture but without compaction. Very clayey and waterlogged soils are unsuitable for cultivation (EMBRAPA, 2009).

MATURITY TIME
The physiological maturity of the seeds occurred at 91 to 103 days after anthesis, and harvesting could be carried out up to 120 DAA since from this time onwards, seed losses occurred due to the opening of the fruit and bixin clusters, where the maximum percentage found was worth 1.62%. (DORNELLAS, et al 2015).
As explained by EMATER, the productivity of the annatto tree is quite varied and depends on the soil conditions, the age of the plant, the type and cultivar, and the cultural treatments used throughout the year. Fruiting can begin in the first year and gradually increase until the fourth year when the production level stabilizes. The expected production of an adult annatto is at least 1,500 kg/ha of dried seeds. The capsules appear at the tips of the branches, forming clusters cut approximately 20 cm below the beginning of the capsules. In northern and northeastern Brazil, harvesting begins approximately 90 days after the flower's opening. The time for harvesting is when 20% of the bunches are dry. The subsequent operation consists of drying the capsules in the sun, taking care that the seeds contained in the capsules are not exposed to heat, which causes a loss in the quality and quantity of pigment (FERREIRA FILHO - EMATER RO, 2021). 

PRODUCER PROFILE AND SOCIAL IMPACTS
Generally, annatto is produced by small-scale farmers, who rely on intermediaries to market their crops, which reduces the farmers’ profit margin. It can be an essential component of farmer income. The income generated, in turn, is distributed among the different actors of the value chains. The chain is strongly pro-local economy, highlighting this crop's importance in generating rural income and employment (HARUMI, 2024; TNC, 2022). 
The annatto crop is intended for small family producers, who benefit from it to increase their annual domestic income. It is a low-cost agricultural activity with medium to high productivity. However, to be financially stable, uruculture requires the organization of producers in associations and unions to strengthen the production chain and ensure the main link in this chain, which is commercialization. Nor can the family farmer do without technical assistance if he wants to overcome the obstacles that arise (EMBRAPA, 2009).

PRODUCTION PROBLEMS

Diseases and insect predation are significant challenges in annatto production. Annatto plants require balanced fertilization during the nursery phase to ensure strong seedling development (FERREIRA FILHO - EMATER RO, 2021).

SUPPLY CHAIN PROBLEMS 
Adopting best practices in cultivation, initial processing, and agro-industrial processing is essential for maintaining the quality of the final product. Proper weather and soil conditions and integrated pest management can prevent production problems (FERREIRA FILHO - EMATER RO, 2021). 
Market expansion is hindered by Annatto's lower stability compared to synthetic dyes, higher product costs, and sensitivity to environmental factors such as temperature and light, which can cause color deterioration(MORDOR INTELLIGENCE, 2023).  

RECOMMENDATIONS FOR PROCESSING AND SIZING 
Implementation of rural development policies: Science, Technology, and Innovation (ST&I), credit, and technical assistance; creation of a continuous database system of the product value chain; creation of tax incentives for socio-biodiversity products and application of a differentiated rate for interstate trade operations and exports to other countries, as these are specific products linked to the biodiversity of the biome (TNC, 2022). 

CARBON CREDIT/SEQUESTRATION POTENTIAL

Strengthening socio-biodiversity productive activities and adding value to this socio-cultural and biological diversity based on science and technology that guarantee greater productivity without affecting the ecological balance, combined with the measurement and remuneration of environmental services embedded in products, are fundamental strategies for a new economic model for the Amazon. However, given the insufficiency of public policies aimed at agents of the socio-biodiversity bio-economy - traditional communities, Indigenous peoples, and family farmers - several structuring actions are necessary to guarantee the leverage of this new economic model and the valorization of the standing forest (TNC, 2022).
Cultivated urucum is an excellent alternative for inclusion in agroforestry systems and can adapt to various management systems in which it is used as a perennial species (FABRI et al., 2016). Furthermore, annatto plantations also allow for the easy implementation of different types of carbon dioxide neutralization projects and strategies, so they are excellent places to generate carbon credits (CRED CARBO, 2023).

CERTIFICATION PROGRAMS
There is no certification for annatto seeds, but producers of annatto seedlings can be certified by the National Registry of Seedlings and Seeds—RENASEM (RENASEM, 2024; IBF, 2020). 

RELEVANT SECTORS

Aggregators/suppliers

IMPORT/EXPORT TARIFFS AND COMPLIANCE

Data for annatto are added to other dyes of plant or animal origin.

BIOCULTURAL PROTECTIONS OF COMMUNITIES OF ORIGIN (NAGOYA/CGEN PROTOCOL/ETC.)

The Brazilian adherence to the Nagoya Protocol, Legislative Decree No. 136 of 08/11/2020, ratified by the national executive in March 2021, can leverage the production chain of annatto seeds due to the use and exploitation of genetic heritage by other countries.

REGULATORY INFORMATION

Harmonized System Number: For import and export of annatto – No. 3203 – Coloring matters of vegetable or animal origin (including coloring extracts, but excluding animal black)

NCM No. (Common Nomenclature in Mercosur) – 2106.90.30

PS.: For all conversions from Brazilian real (BRL) to US dollar (USD), an average of the values for each year was made (example: sum of the monthly averages for the year 2021, divided by 12. The result was taken with the value dollar average in 2021).

Table with monthly averages:
Year 2009:  USD 1 ≅ BRL 2,11 (annual average).

Year 2012:  USD 1 ≅ BRL 1,99 (annual average).

Year 2018:  USD 1 ≅ BRL 4,02 (annual average).

Year 2019:  USD 1 ≅ BRL 4,16 (annual average).

Year 2020:  USD 1 ≅ BRL 5,44 (annual average).

Year 2021:  USD 1 ≅ BRL 5,90 (annual average).

Year 2022:  USD 1 ≅ BRL 5,30 (annual average).

Year 2023:  USD 1 ≅ BRL 5,18 (annual average).

Year 2024 (until April):  USD 1 ≅ BRL 5,28 (annual average).