NAICS 311613 Quarterly Industry Report
Rendering and Meat Byproduct Processing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311613Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311613 provides valuation-focused intelligence for professionals assessing rendering and meat byproduct processing businesses. Additional data is drawn from Bureau of Labor Statistics[8], U.S. Census Bureau[9].. Data is sourced from USDA[6] animal byproduct and feed safety data, EPA[7] environmental compliance standards, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for rendering enterprises.
Industry Snapshot
Key metrics for the rendering and meat byproduct processing industry.
Industry Definition & Overview
Rendering and Meat Byproduct Processing (NAICS 311613) encompasses establishments primarily engaged in rendering animal fat, bones, and meat scraps into usable products including tallow, lard, meat and bone meal, blood meal, feather meal, and other animal protein and fat products. Additionally, rendering operations serve as a critical link in the meat supply chain, converting inedible slaughterhouse byproducts, restaurant grease, and dead stock into valuable ingredients for animal feed, pet food, oleochemical manufacturing, biodiesel production, and industrial applications. The U.S. Census Bureau[5] classifies rendering separately from animal slaughtering (NAICS 311611) and fats and oils refining (NAICS 311225). Rendering plants operate as independent processors or as integrated departments within larger slaughter facilities, collecting raw materials from meatpacking plants, butcher shops, grocery stores, and restaurants through established collection routes and grease trap service agreements. The USDA[6] and EPA[7] regulate rendering operations through food safety standards for edible rendering, feed safety requirements for animal protein meals, air emission permits, and wastewater discharge limitations. Growing demand for renewable diesel and sustainable aviation fuel feedstock has increased the value of rendered animal fats, creating new market opportunities for rendering operators. Business valuations for rendering operations focus on raw material collection routes and geographic coverage, processing plant capacity and equipment condition, product mix between edible and inedible rendering, and end-market relationships with feed manufacturers, oleochemical companies, and biodiesel producers. Appraisers evaluate collection route density and efficiency, cooking and separation equipment throughput, fat and protein yield rates, environmental compliance costs, and the growing strategic value of animal fat as a renewable fuel feedstock.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for rendering and meat byproduct processing operations
- Revenue and profitability analysis across tallow, meat and bone meal, blood meal, yellow grease, and edible rendering product segments
- SBA size standard classification and lending threshold data for NAICS 311613
- Comparable transaction data from recent rendering company acquisitions, collection route portfolio sales, and processing plant transactions
- Market analysis covering renewable diesel feedstock demand, animal protein meal pricing, tallow markets, and used cooking oil collection growth
- Workforce and labor cost benchmarking for collection route drivers, rendering plant operators, quality technicians, and maintenance staff
- Industry risk assessment including raw material volume fluctuations, environmental compliance costs, commodity pricing cycles, and odor management challenges
- Regulatory compliance overview covering USDA feed safety rules, EPA air emission permits, wastewater standards, and state environmental agency requirements
- Capital expenditure profiles for cookers, presses, centrifuges, collection trucks, storage tanks, and air pollution control equipment
- Production metrics including tons processed per day, fat yield percentages, protein meal recovery rates, collection route efficiency, and cost per ton benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Animal Slaughtering and Processing | 3116 |
| NAICS Industry | Animal Slaughtering and Processing | 31161 |
| National Industry | Rendering and Meat Byproduct Processing | 311613 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311611 | Animal (except Poultry) Slaughtering | Animal slaughtering operations generating offal, bones, fat, and inedible byproducts that rendering plants collect and process into tallow and meal products |
| 311612 | Meat Processed from Carcasses | Meat processing operations generating fat trim, bone, and waste materials collected by rendering operations for conversion into usable animal fat and protein products |
| 311225 | Fats and Oils Refining and Blending | Fats and oils refining operations that further process rendered animal fats and tallow into refined grades for food, oleochemical, and industrial applications |
| 311119 | Other Animal Food Manufacturing | Other animal food manufacturing operations purchasing meat and bone meal, blood meal, and animal protein ingredients from rendering plants for pet food formulations |
| 311615 | Poultry Processing | Poultry processing operations generating feathers, offal, and processing waste collected by rendering plants for conversion into feather meal and poultry byproduct meal |
| 424470 | Meat and Meat Product Merchant Wholesalers | Meat product wholesalers coordinating byproduct and waste material collection logistics between meat distribution centers and rendering collection routes |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Iowa | 9.3% | 16 |
| 2 | California | 8.7% | 15 |
| 3 | Nebraska | 6.4% | 11 |
| 4 | Illinois | 6.4% | 11 |
| 5 | Ohio | 5.8% | 10 |
| 6 | Georgia | 5.2% | 9 |
| 7 | Texas | 5.2% | 9 |
| 8 | North Carolina | 4.6% | 8 |
| 9 | Pennsylvania | 4.6% | 8 |
| 10 | Virginia | 4.6% | 8 |
% Of Establishments
0%
9%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$5.1M
Total Loan Volume
$639K
Average Loan Size
10 yrs
Average Loan Term
9.50%
Average Interest Rate
0
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Rendering and Meat Byproduct Processing (NAICS 311613) with a size standard of 1,000 employees. Rendering operators within this threshold qualify for SBA-backed lending[12] and government contracting preferences, with independent rendering companies accessing capital for collection route expansion and processing equipment upgrades. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First Commonwealth Bank | 8 | $5.1M | $639K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for rendering operations?
Rendering and Meat Byproduct Processing is classified under NAICS code 311613, covering animal fat rendering, bone processing, and meat scrap recovery per the U.S. Census Bureau[5] classification system.
What is the SBA size standard for rendering?
The SBA[11] sets the size standard for NAICS 311613 at 1,000 employees, qualifying eligible rendering operators for small business lending programs and government contracting preferences.
How are rendering businesses valued?
What products does rendering produce?
Products include tallow, lard, meat and bone meal, blood meal, feather meal, yellow grease, and other animal protein and fat products per U.S. Census Bureau[5] product classifications.
How has renewable diesel affected rendering?
Growing demand for animal fat as renewable diesel and sustainable aviation fuel feedstock has increased rendered fat values, creating new revenue opportunities for rendering operations.
What risks affect rendering operations?
Major risks include raw material volume fluctuations tied to meat industry cycles, environmental compliance costs for air emissions and wastewater, commodity price volatility, and odor complaints.
What environmental regulations apply to rendering?
The EPA[7] regulates rendering through air quality permits for odor and emissions, wastewater discharge standards, and state environmental agencies enforce additional facility-specific requirements.
Why are collection routes valuable?
Collection routes represent a key value driver because raw material access through established pickup agreements with slaughter plants, restaurants, and meat processors creates recurring supply.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]USDA usda.gov
- [7]EPA epa.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
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