What is the purpose of collecting used cooking oil?
Used cooking oil that enters a standard disposal system creates problems, beginning in your kitchen’s plumbing lines and continuing in your city’s drainage system. Eventually, the oil residue can clog the sewage purification plants. The government has passed legislation to help minimize the amount of oils and fats in our sewage. According to these laws, businesses are obligated to install oil separators that catch and hold the oil.
The operator of the kitchen (i.e., you) is required to have the oil removed and taken to a licensed site, and the cost of this service is quite high. Fandango will place a collection tank outside your kitchen, and then, instead of your paying to have old cooking oil removed, Fandango will pay you for your used oil at a rate that is based on world market prices; this payment can be received in cash, or as credit – up to NIS 4.68 (including sales tax) per kilogram – to be used toward the purchase of products sold by Fandango.
What do you do with the used oil?
Used cooking oil is processed to form a chemical base for the manufacture of skin creams, solvents and more. It is also used in the production of biodiesel fuel and as a nourishing ingredient in
How is the price for used oil determined in Israel?
Used cooking oil (UCO) is traded in world commodities markets, where it is sometimes termed yellow grease. Its price is determined based on world demand, and it can fluctuate from day to day. Below you can find the central site for all prices of used oils, along with the price of raw soybean oil
(in the USA commodities markets)
Because of this system, our site presents the prices in cents per pound. To find the price per kilogram, multiply the price by 2.2, since one pound is equal to 0.4535 kilograms.
For example, if the market price is 35.5 cents per pound of oil, multiply that by 2.2 to get $0.781 per kilo. Then calculate the shekel equivalent of that sum based on the current exchange rate.
Note that these prices are only an indication of world market trends. The actual price is subject to consumers’ demand and their offers in each locale. Because of this, the price of oil in Israel may at times be somewhat higher or lower than the U.S. market price.
Why does it sometimes happen that the price of fresh oil will go up and yet Fandango will lower the price they pay for the used oil?
Generally, the prices of used oil will follow the same trends as those of fresh oil; but this is not always the case.
Fresh oil is purchased by a far greater number of consumers than used oil. Many consumers have no suitable substitute for fresh oil. There are far fewer consumers who have a need for used oil, and they can substitute that with any of a number of other products for their purposes. Therefore, it can happen that the price of fresh oil goes up while that of used oil goes down, and this has in fact occurred on occasion.
I heard that Fandango will pay up to NIS 4 per kilogram of oil. Is this true?
Yes! And Fandango makes it possible for its suppliers to purchase disposable products at cost price (which includes the cost of financing, storage, packaging and delivery), offering credit of up to NIS 4.68 for each kilogram of used oil, with a minimum order of NIS 600 of merchandise. Based on the amount of the order, it is possible to receive credit in exchange for the used oil you supply us.
For example, if someone made an order of NIS 1,300 of merchandise and services from Fandango, it is possible to receive credit for 50 kilograms of used oil, which translates into NIS 200. In this case, the final bill for the order would be NIS 1,100. The larger your order, the more credit you can take for your used oil.
For more information, or to schedule an appointment with our representative, contact us through
or call us toll-free (in Israel) at (1-800) 495-495
Is there competition in Israel for collecting used cooking oil?
Fandango has been in this business since 1993. It was the first company to offer this service in Israel. Over time, competitors sprang up (as happens in any business, anywhere in the world), scrambling to gain suppliers of used oil. Some of this competition is clean and honest, and it actually promotes the industry, by improving the service and products we provide to our own suppliers. There is also some unfair and illegitimate competition going on, by companies that violate a number of business laws. We are dealing with this issue in conjunction with Israeli law enforcement agencies, and we hope to remove this unethical competition from the landscape.
What factors should I consider when choosing a company to collect my used cooking oil?
First, you must ensure that the people claiming to be legitimate oil collectors can show you their
licenses and permit
to deal with used cooking oil, and that they are sufficiently insured so that you will be protected. The main question you need to ask yourself is whether you can trust those who represent this company. In many cases, food service providers are assured that they will receive equipment, services, bargain prices (this often comes with a collection container that you will not be able to measure), cash payments (accompanied by a “wink” and without an official receipt – would you risk working with a company that operates in that way?) and other such grandiose promises.
In time it will become clear that promises are one thing and the reality is something else altogether. There is no question that you, the food service provider, deal with many challenges in your business. The issue of disposing of used oil is a relatively minor challenge among all the others. Some companies take advantage of this situation, knowing that you probably won’t have a real chance to thoroughly investigate their business practices.
With Fandango, everything is up front. Transparency is one of our highest priorities. Once you have signed up, Fandango gives you the opportunity to go into our website and examine your account. You can see the history of the amounts of oil collected from your establishment, both in list form and on a graph, showing the prices and dates of each collection, plus more information. This enables you to examine your account quickly and easily, gaining a complete picture of the disposal of your used oil from the container outside your restaurant. Furthermore, the
enables you to contact us or your area’s district manager directly.