The Yellow Grease Market

What do you do with used cooking oil? 

You’ve likely already used multiple products that included yellow grease as an ingredient. Numerous products include the synthesized form of used-cooking oil, including:

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

In simplified terms, there is a demand for converted waste oil within the yellow grease market. Over the last 18 months, the market has risen to historical levels, with expectations remaining high in the upcoming years.  

Reasons for the yellow grease market rise 

There are many reasons for the rise of the yellow grease market, but the first and most obvious is supply. The Covid-19 pandemic forced thousands of restaurants to close their doors. In doing so, the availability of used cooking oil drastically decreased, causing the demand and price for yellow grease to surge. 

Another component of the market rise lies in the value of other commodities, like corn. Animal nutritionists use yellow grease and corn as high-energy ingredients in pet and livestock feeds. The demand for yellow grease often reflects the price of corn, which has steadily climbed. 

Lastly, due to climate change concerns, there are increased societal demands for cleaner fuel alternatives. As mentioned previously, yellow grease is a component in producing renewable diesel - a cleaner burning fuel that reduces carbon emissions by up to 85 percent.  

Choosing a reputable partner in the yellow grease market 

Longevity is imperative when it comes to your used oil recycling services. When the market is healthy, competition within the industry increases. Use this window of opportunity to partner with a reputable and long standing partner. 

Smaller service providers will undoubtedly pop up looking to capitalize on the market. They’ll offer a generous rebate that will sound hard to pass up. Before making a decision, ask your potential partners these questions: 

• What did your company do when the market was down?
• Did your company offer the same offer a year ago?
• Will your rebate remain the same a year from now? 

The answers to these questions will signify whether their rebate is sustainable long-term. Avoid companies untied to the ever-changing market. 

Best practices for market price fluctuation

Prices of yellow grease fluctuate like any other marketplace, with prices as high as 60 cents in 2016 and as low as 16 cents in 2016. Even though the financial value of yellow grease is forecasted to stay strong in upcoming years, there will eventually be a dip. 

Remember the providers who offered you a juicy rebate? When the dip arrives, look around to see if they’re still in business. Flakier competitors disappear when the market turns downward, taking your preferred rebates with them. They’ll leave you without service, requiring your time and energy to reestablish connections and equipment.  

We understand that successfully running a restaurant is already demanding work. Cooking oil recycling shouldn’t be an additional headache. Partnering with a longstanding industry leader like Darling Ingredients Canada relieves you of future worry while delivering the utmost value.  

Darling Ingredients Canada operates in a way that shields you from market volatility and dramatic fluctuation. When the market rises, your income reflects that. When the market falls, your rebate gradually lowers but doesn’t end.  

Reducing grease theft and property damage

What happens when a commodity’s value increases? The potential for theft also increases. 

It may seem laughable, but grease theft is a severe crime, with up to $75 million worth of used cooking oil stolen nationwide. That’s no small figure. In addition to the increased likelihood of property damage, grease theft leaves an annoying mess to clean and replace.  

Darling Ingredients Canada eliminates theft risk by providing the industry’s most diverse lineup of automated used cooking oil storage systems. Our locking devices and solid steel grates impede potential theft and influence criminals to move on to easier targets. 

Darling has the technology to ensure secure collection and recycling. Our automated systems fit inside your kitchen, and proprietary anti-theft valves ensure our service truck is the only one capable of picking up your oil. Partnering with us assures your business, employees, and used grease remain safe.  

Darling Ingredients is an industry expert in used cooking oil recycling & collection. We’ve operated off the yellow grease market for decades and our innovative equipment solutions, strong customer support, and service expertise have proven to withstand the test of time. Reach out to a representative today and find out how your ghost kitchen or restaurant can benefit from our partnership. Call us at (800) 263-0302.