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It’s likely that you’ve used multiple products today that included yellow grease as an ingredient. In other words, there is a demand for converted used cooking oil within the yellow grease market.

What is the driving force behind this continued climb and how will affect your business? Here are some things to consider.

Reason for the rise:

The first and most obvious is supply. The ongoing pandemic has forced thousands of restaurants to close their doors, 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 often acts as a substitute to corn. Naturally, demand for yellow grease often mirrors the price of corn, which steadily climbed in 2020.

Lastly, there is a perpetually 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 80 percent. Climate change is becoming a more pressing issue by the day and healthier alternatives to petroleum are in high demand worldwide, which in turn increases the demand for yellow grease.

How does this affect your business? It means it is as important as ever for your business to partner with a reputable and longstanding partner like DAR PRO Solutions. Why? Let’s examine a few reasons.

Why it matters to you:

Longevity matters when it comes to your used cooking oil recycling service. When the market is healthy, competition within the industry increases. Smaller service providers pop up looking to capitalize on the opportunity. They’ll offer a generous rebate that will sound hard to pass up. Before making a decision, ask them these questions:

  • 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 answer to all these questions center around the fact that their rebate is not sustainable long-term and is not 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 in reality, they are actually the same thing.

As we mentioned earlier, prices will fluctuate like any other marketplace. The price of yellow grease has been as high as over 36 cents in 2012 and as low as 16 cents at times 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.

Remember that same provider who offered you a juicy rebate? Look around to if they are still there when the dip arrives. When the market takes a downward turn, those flakier competitors tend to disappear (along with those favorable rebates), leaving you without service and requiring your time and energy to reestablish it.

DAR PRO operates based off the market, shielding you from market volatility. When the market rises, your rebate will gradually reflect that. Conversely, when the market falls, your rebate will lower gradually. Any other provider’s offer, which will predictably come during a strong market, will not last and your rebate will fluctuate more dramatically. Our method is the only path toward consistently deriving the utmost value. For more information on current market behavior, look here.

Beyond rebates, the process of changing services is a pain. Cooking oil recycling shouldn’t be a top priority for your kitchen. Switching providers and installing new equipment takes time. Partnering with a longstanding industry leader like DAR PRO rids you of this worry.

Grease theft has a cost

  • $75 million worth stolen annually
  • Leaves employees at risk
  • Makes a mess and damages property

What happens when a commodity’s value increases? The potential for theft increases as well. It may not seem like a serious threat, but grease theft is a serious crime. Up to $75 million worth of used cooking oil is stolen nationwide. That’s no small figure and you should ensure your grease is secure. Smaller providers that come and go based on the health of the market are not equipped to keep your oil safe.

We don't pay for what we can't convert.

DAR PRO has the technology to ensure a safe collection and recycling process, such as our automated systems that fit inside your kitchen and proprietary anti-theft valves that ensure our service truck is the only one capable of picking up your oil. We can’t pick up what isn’t there, and our equipment is designed to keep your oil secure. Theft is increasingly prevalent when the yellow grease market is high as criminals try to subtly make a profit off something that belongs to you. The damage thieves cause while breaking into your tank and any oil they spill is yours to clean up, only costing you more time and money, all while potentially compromising employee safety if a worker encounters a thief in the act. Partnering with DAR PRO ensures your oil, your business and your employees remains safe.

This year is shaping up to be a potentially healthy one for the yellow grease market as the price and demand rise. DAR PRO Solutions has been an industry leader since the market’s inception. We’ve helped construct and maintain the infrastructure and technology to get the most consistent the value out of your grease for years to come. No matter the state of the yellow grease market, DAR PRO is there for you.

Have questions? Contact us at (855) 327-7761

DAR PRO Solutions 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 DAR PRO representative today and find out how your ghost kitchen or restaurant can benefit from our partnership. Call us 24/7/365 at 855-DAR-PRO1 (855-327-7761).

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2/16/2021