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How to Get Consistent Value from Your Converted Used Cooking Oil

Apr 5
2021

On its own, waste cooking oil from your fryer has no value and needs to be disposed of. But with the help of a reputable used cooking oil recycling service, oil is converted into yellow grease, a valuable component used in the production of renewable diesel, as well as an ingredient in consumer products such as:

  • Animal Feed
  • Lubricants
  • Soap/Shampoos
  • Cosmetics/Moisturizers
  • Pet Food
  • Hand Sanitizer
  • Detergents
  • Polish

The price of yellow grease is rising and further ascension into 2021 is expected.

Reason for the rise:

The first and most obvious is supply. The pandemic has forced thousands of restaurants to close, meaning the available supply of used cooking oil has diminished, causing the demand for yellow grease to surge as the price follows suit.

Another component of this is the value of other commodities, like corn. Yellow grease can be used as a nutritional additive to animal feed and acts as a substitute to corn. Naturally, demand for yellow grease often mirrors the price of corn, which climbed in 2020.

Lastly, there’s an increasing demand for cleaner fuel alternatives as society becomes more environmentally conscious. As mentioned earlier, yellow grease is a component in the production of renewable diesel, a cleaner burning fuel that reduces carbon emissions by up to 85 percent.

Why it matters to you:

Longevity matters. When the market is healthy, competition within the industry increases. Smaller service providers appear looking to capitalize on the opportunity. They’ll offer a generous rebate that will sound hard to pass up. Before making a decision, ask:

  • Where were you when the market was down?
  • Was the same offer available a year ago?
  • Will the rebate remain the same a year from now?

The collective answer centers around the fact that their rebate is not sustainable long-term and isn’t tied to the ever-changing yellow grease market.

Yes Pounds. No Gallons.

One deceiving practice less-established providers will employ when the market is healthy is a change in the measuring unit. Instead of paying by the pound, they’ll pay by the gallon which inflates the price per unit. In other words, offering a rebate of 42 cents per gallon sounds more enticing than 6 cents per pound, but they’re actually the same thing.

Like any other marketplace, price fluctuates. Yellow grease has been as high as over 36 cents in 2012 and as low as 16 cents in 2016, with sharper ascensions and declines in-between. Even though the price of yellow grease is forecasted to continue rise in 2021, there will eventually be a dip. When it inevitably arrives, those flakier competitors tend to disappear, leaving you without service. The path toward consistently deriving the utmost value is rebating based off the market.

Grease theft has a cost.

What happens when a commodity’s value increases? The potential for theft increases as well. Grease theft is a serious crime with $75 million worth stolen annually. Smaller providers that come and go based on the health of the market are not equipped to keep your oil safe. The damage thieves cause while breaking into your tank is yours to clean up, costing you more time and money, all while potentially compromising employee safety. Your provider won't pay for what it can’t collect. Deter theft by using automated equipment to store your oil.

This year is shaping up to be a potentially healthy one for the yellow grease market as the price and demand rise. Businesses should ensure their service provider is a longstanding one that they can trust.

Learn More

About DAR PRO Solutions

DAR PRO Solutions is an industry leader in used cooking oil recycling, as well as grease trap cleaning and meat-byproduct collection. We’ve operated off the yellow grease market for decades and proudly serve over 125,000 customers nationwide no matter its state. With facilities from coast-to-coast, our investments in infrastructure and innovative technology have enabled us to build a consistent, reliable service that has proven to withstand the test of time. Reach out to a DAR PRO representative 24/7 at 855-DAR-PRO1 (855-327-7761)

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