Where can I go to find out what the current value/price of WVO is?
True Value of Waste Vegetable Oil
The value of Waste Vegetable Oil (WVO) is a commodity traded on the Chicago Mercantile Exchange. This price represents the retail value of WVO sold in bulk that has been filtered down to 5 microns and de-watered. There are several variables that affect the final price an establishment can expect to receive from the sale of their WVO.
- How much WVO do you generate per month? The less you have the more trips are required to pick it up to achieve the same quantity. Also, there is more paperwork per gallon. There is value in being able to go to just one place to pick up all of the WVO one needs.
- Is the WVO clean and without water? Cleaning and drying WVO is in itself a job and requires special equipment.
- Does the establishment deliver the product or does it need to be picked up? Specialized equipment is needed to store as well as pick up the product and, of course, labor, fuel plus depreciation.
Formula for determining value:
What is the commodity value of clean, de-watered, WVO in bulk?
Go to http://www.ams.usda.gov/mnreports/lswagenergy.pdf
Look for Yellow Grease, Central U.S.
Price given is Price / CWT or Price per 100 lbs.
For this example let’s say that the value is $33.75 per CWT (take the high value for this week) which works out to about $2.52 per gallon. To get that price per gallon multiply the price per CWT by the factor of .07467.
33.75 * .07467 = $2.52 per gallon
So if someone wanted to sell a tanker full of clean, de-watered WVO he could expect to receive $2.52 per gallon from this example. However, restaurants are usually not in the position to clean, dry and deliver their WVO to the renderer.
$2.52 per gallon Retail value, in bulk, clean, dry and delivered to renderer
- -$.84 Subtract 1/3 of original cost to pick up
- -$.84 Subtract additional 1/3 of original cost to clean & dry
- X Subtract additional variable depending on quantity picked up
This additional variable depends on how much WVO is picked up per month
- Over 301 gallons / mo Subtract nothing
- 251 – 300 gallons / mo Subtract additional 5%
- 201 – 250 gallons / mo Subtract additional 10%
- 151 – 200 gallons / mo Subtract additional 15%
- 101 – 150 gallons / mo Subtract additional 20%
- 51 – 100 gallons / mo Subtract additional 25%
- 50 gallons or less / mo Subtract additional 30%
This is how I tell a restaurant what I will pay for WVO. Let me know what you think.
Marty – thank you for simplifying this analysis (especially the factors and adjustments required to get to restaurant. I am looking to go the other way, I am looking to buy WVO for Biodiesel production and trying to figure what my cost would be for the oil. So, in your example, starting from the $2.52 / gal – do you know of similar factors to apply to go from FOB Chicago to delivery (volume and freight factors)??
Location: Rochester, NT
I have a question. Who is buying the WVO to give it that value?
It’s so gross you would not believe it. The livestock industry is buying it to add to cattle feed. They also add leftover meat.
That is what tallow and brown grease have been traditionally used for, cattle feed. Just like the matrix when the humans generating power were being fed liquefied humans!