How Much is Used Cooking Oil Worth?

Whether you manage a hotel restaurant or own a franchise of QSRs, chances are high you’re well aware that cooking oil theft is on the rise.¹ Indeed, the cooking oil market size is rapidly increasing, with estimates suggesting it’ll be globally valued at $10.08 billion by 2028.²

But why? And how much is used cooking oil worth?

You’ve landed in the right spot. Let’s walk through the basics behind the yellow grease market and how you can leverage the growing market size of used cooking oil to your benefit. 

The Price of Used Cooking Oil

The price of used cooking oil hinges on several factors, including where it was sourced and how it was used.³ That said, the latest USDA report indicates that yellow grease fluctuates between 21 and 41 cents per pound.⁴ On the black market, it’s deemed liquid gold.

Before we get deeper into the topic, let’s back up briefly. What is yellow grease, and how does it differ from other types of used cooking grease?

• Yellow grease – Put simply, yellow grease is what you might think of when you picture fryer oil.⁵ Defined as a FOG (or fat, oil, or grease), it refers to renderable cooking oil that’s neither come into contact with nor been contaminated by things like wastewater or solid waste.

• Brown grease – Brown grease is another FOG, but it isn’t, well, clean: it’s pulled from places like grease traps. 

Why is Used Cooking So Valuable?

The used vegetable oil price remains valuable because of yellow grease’s myriad of applications. These include:

• Animal feed manufacturing – Recycled yellow grease is used as a nutritious and high-calorie ingredient in animal feed that, in turn, allows farmers to raise more, and healthier, livestock.

• Industrial products – Yellow grease is also used as an oleochemical—or a chemical derived mainly from plants—in a variety of industrial products.⁶ These include cosmetics, soaps, detergents, and rubber.

• Lubricants – Additionally, yellow grease is used in food production facilities to lubricate machinery. 

• Renewable Biodiesel production – Above all, however, yellow grease is a hot commodity because it can be leveraged in the production of renewable biodiesel—an alternative to traditional fossil fuels that contributes to a more sustainable environment. 

Another thing that makes used cooking oil valuable is traceability. The ability to prove that the oil was used and where it came from contributes greatly to its value. Our Total Oil Management system provides the industry’s most accurate and reliable traceability. That means you can achieve the greatest possible value.

As for brown grease? It’s challenging to reuse due to its contamination with waste, but it might have a hand in renewable energy in the future⁷.

Market Dynamics: Supply and Demand

The demand for yellow grease is the force behind increasing prices. Currently, yellow grease makes up an estimated 5% of the 24 billion pounds of renewal animal feed that’s produced in the United States.⁸ The US government also promotes renewable biodiesel production and awards its producers with various tax credits. The result? A cooking oil market that’s continuing to heat up (pun intended). 

Who is Buying Used Cooking Oil?

Used cooking oil is primarily purchased by:

• Animal feed manufacturers
• Renewable biodiesel producers
• Industries that use biodiesel, such as transportation and electricity 

How Can you Manage & Recycle Used Cooking Oil

Utilizing cooking oil management services can be a boon for your bottom line and your food service business as a whole. In addition to potentially decreasing costs, cooking oil management⁹:

• Improves safety by reducing the risk of slips, falls, and burns
• Frees up employees to attend to other (less dirty and burdensome) tasks
• Enhances food quality
• Acts as an eco-friendly alternative to traditional methods of tossing used cooking oil, which may boost your reputation and drive in more customers

Keep in mind that several factors may impact the profit of selling used cooking oil. These include market demand and whether or not your yellow grease meets specific purity standards needed to recycle it.⁹

Preventing Theft

The recent spate of used cooking oil thefts emphasizes the importance of implementing a robust security system. Protect your business and your pocketbook by:

• Using indoor containers for oil storage, or locked outdoor containers
• Installing alarm systems and cameras
• Implementing lighting where your cooking oil is stored

Additionally, consider training your staff on the threat of cooking oil theft to help ensure your whole team remains on the lookout. 

Maximizing Your Returns with Restaurant Technologies

Given the pivotal role cooking oil plays in everything from sustainable farming to biodiesel production, we’d say the real yellow grease price is priceless.

It’s one of the many reasons we’re at the forefront of cooking oil management. Our Total Oil Management offers establishments like yours bulk oil delivery, filtration and monitoring, cooking oil recycling, and removal—all so that your restaurant can flourish.

Additionally, enhance your sustainability efforts by discovering how to recycle oil bottles, which can significantly reduce your restaurant’s environmental footprint. For those involved in cafeteria operations, discover our tips on how to run a cafeteria to find key strategies for enhancing efficiency and customer satisfaction. 

Up-level your back-of-house operations with Restaurant Technologies.

Sources: 

1. CBS News. Used cooking oil thefts making a big comeback on Long Island. https://www.cbsnews.com/newyork/news/long-island-used-cooking-oil-thefts
2. Fortune Business Insights. Used cooking oil market size, share & COVID-19 impact analysis. https://www.fortunebusinessinsights.com/used-cooking-oil-market-103665
3. Spherical Insights. Used cooking oil market size, share, trend, forecast 2030. https://www.sphericalinsights.com/reports/used-cooking-oil-market
4. USDA. Monthly national animal by-product feedstuff report. https://www.ams.usda.gov/mnreports/ams_3669.pdf
5. Montgomery County. What is the difference between yellow grease and brown grease?https://www.mcohio.org/FAQ.aspx?QID=196
6. ScienceDirect. Oleochemical. https://www.sciencedirect.com/topics/biochemistry-genetics-and-molecular-biology/oleochemical
7.  Neste. Future raw materials. https://www.neste.com/products-and-innovation/raw-materials/future-raw-materials 
8. Reiter Trading. Factors affecting the cost of yellow grease. https://reitertrading.com/blog/price-of-yellow-grease
9. McKinsey & Company. Consumers care about sustainability—and back it up with their wallets .​​https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/consumers-care-about-sustainability-and-back-it-up-with-their-wallets