Annatto is a natural food coloring and flavoring agent derived from the seeds of the tropical Bixa orellana tree. The annatto seeds contain pigments known as bixin and norbixin, which provide a vibrant orange-to-red color. Annatto is commonly used in various food products, such as cheese, butter, margarine, and snack foods, to give a rich yellow to orange hue. Annatto production involves separating the seeds from the fruit, and then they are dried and ground into a fine powder or processed into an oil or water-soluble extract.