Brokers: Strategic partnerships in the animal recycling market

With around 60 employees, Aboissa has an infrastructure segmented into business units. Each of them is focused on a product family, offering specialized customer service. For the grease sector, there is the Animal Profat unit, responsible for the animal protein and fat market. Each team has great support and support from administrative departments (Marketing, Finance, IT, Shipping and Human Resources) that strengthen the company to provide a service with excellent quality. Furthermore, the brokerage has partners and sources of information from the world's main agencies such as Reuters, Bloomberg, Agência do Estado (Broadcast), FCStone, Datagro, among others. “Aboissa continually invests in technology, team development and ensuring proximity to customers. Among many differentiators, perhaps the biggest highlight is that we provide a complete service. There is privileged information about the market, business transactions with the certainty of the best commercial conditions and after-sales service very well aligned with operational issues. In addition to agility, we also established a line of conduct in which values such as transparency, honesty and ethics will always be present in our service. We remain immersed in the market, therefore, we are able to develop much more refined solutions and proposals with advantages of saving time and costs, and total reduction of risks. In post-sales, we are responsible for monitoring the entire operational process until the arrival of the product and payment from the supplier, taking into account the particularities of each operation.”

The sale of fats to the biodiesel sector had an important role in Aboissa's business in the first quarter of 2020. This market had been very strong since August 2019. Currently, in Brazil, the rate of mixing biodiesel with diesel oil is 12%. In February there was an auction in which an increase in the minimum mixture from 11% to 12% was already seen, further consolidating the biodiesel market, placing it at the forefront of the cleaning hygiene segment, representing around 60% of the volume of products originating from animal recycling. From March onwards, consumption began to change and feel the effects of the pandemic. Firstly, due to the drop in cattle slaughter, the economic scenario forced a drop in consumption, on the domestic market, of the finest cuts (which are decisive in justifying slaughter) and a drop in consumption in Asia, which had a large share of the foreign market. of refrigerators.

According to IBGE, there was a drop of more than 9% in slaughters in the first quarter of 2020 compared to last year. However, some slaughterhouses reported reductions of 20% to 50% in slaughters from the end of January. On the buyer's side, the biodiesel sector recorded in the last auction, in April, the lowest level of volume sold since June of last year. In the hygiene and cleaning sector, although there was an increase in demand for raw materials, the price of tallow fell. Even with the high consumption of soap shops, it was not enough to absorb the migrated supply from the biodiesel sector. In the flour segment, the dynamics were limited to supply and demand. With the low supply of by-products there was a great shortage of flour, forcing an increase in prices. “There was great expectation for this year, as the macroeconomic outlook aroused a lot of optimism for all sectors. Now the situation is one of uncertainty and challenges. Business will require a lot of information, discipline, organization and planning. and this is how we also hope to move forward with the market in a phase that requires more solutions. In our brokerage sector, this scenario can be seen as an opportunity to remain more proactive. For brokers that limit themselves to prices and do not specialize and seek to deliver added value, there will be no space”, concludes Caio.

Source: Brazilian Grease Magazine