Reputation Matters

How UCO collectors can show the world what they stand for.

The used cooking oil (UCO) collection industry is essential to the renewable fuel supply chain, but it’s no secret that the sector has its darker corners. From oil-theft rings to fraudulent recordkeeping and greenwashing of non-EPA-approved feedstocks, the underbelly of the UCO world poses a growing threat—not just to collectors, but to the integrity of the entire biofuels market.

The UCO sector is increasingly plagued by rampant theft and sophisticated fraud. Reports suggest up to 40 percent of feedstock entering Europe comes from markets known for high levels of fraud. News reports detail organized crews hitting multiple restaurants in a single night, siphoning valuable oil and leaving behind less desirable residues. It’s a great business model for thieves—no need to purchase tanks or equipment.

The financial losses can be staggering. One restaurant owner reported losing $40,000 from the theft of 20,000 gallons of UCO over a period of time. This is not merely petty theft. It represents a coordinated assault on the legitimate supply chain, demanding a more sophisticated response than simple container locks.

Many renderers and downstream buyers now face a difficult question: Are they unknowingly (or worse, knowingly) buying stolen oil? Federal and state regulations require that UCO sold into the renewable fuel industry be traceable to its origin. “Records fraud” is not unheard of, however, and in an industry where paperwork can unlock lucrative government credits, the incentive for deception is real.

The consequences of noncompliance are severe. EPA enforcement actions against RFS fraud have resulted in substantial civil penalties (e.g., a $320,000 fine for Quad County Corn Processors) and, in cases of deliberate fraud, criminal prosecutions leading to lengthy prison sentences (up to 87 months reported in one case) and multimillion-dollar financial judgments against perpetrators who generated invalid RINs.

In this high-stakes environment, operating “under the radar” or relying on outdated practices are no longer viable strategies. The market, regulators and legitimate trading partners are demanding proof of legitimacy. For UCO collectors, demonstrating ethical sourcing, meticulous documentation, regulatory adherence and transparent practices is now essential—not just for maintaining reputation, but for ensuring market access, mitigating significant financial and legal risks, and securing long-term survival and profitability.

That’s why reputable traders like Reiter Trading, which is committed to the long-term viability of the industry, work hard to ensure that the oil they purchase is sourced ethically. We refuse to support thieves who harm our legitimate collectors. We protect our buyers from liability. When UCO is purchased from Reiter Trading, buyers can be confidently prepared for any audit. Our integrity and reputation are our advantages—and yours.

So how can UCO collectors demonstrate to the world—and to their trading partners—that they’re legitimate? Start with these principles outlined below.

Document Sources

Oil theft often starts with container theft. Don’t become part of that chain. Keep records of where containers come from—who they’re bought from, when they were placed, and at which accounts. If containers are acquired from abandoned sites, understand the difference between lawful reclamation and theft.

In most states, formal notice must be given to the container’s owner before removing it and a statutory holding period must be observed—unless it’s a health or safety hazard that the restaurant has documented and reported. Even then, best practices dictate holding it, offering pickup, and documenting and dating everything with the restaurant owner. Playing it by the book protects the collector and sends the message of “We don’t take what’s not ours.”

Use Provenance-Tracking, Route-Optimization Software

In the past, scribbled route logs might have sufficed. Today, government-backed renewable fuel programs demand thorough traceability—from fryer to fuel. Investing in technology should be viewed not as a mere expense but as a strategic imperative. It facilitates compliance, generates operational savings (in fuel, labor and maintenance), reduces risks associated with theft and fraud, and can even enable significant business growth without proportional increases in administrative staff.

Automation extends to job scheduling and dispatching, streamlining workflows and improving resource allocation. Mobile applications empower drivers in the field with real-time access to schedules, customer details and digital work-order submissions, eliminating cumbersome paperwork and reducing administrative overhead.

Using industry-grade UCO software like Route Simplified does more than make your route 20 percent to 40 percent more efficient. It builds a secure, timestamped, digital trail of every pickup made. This ensures that when the oil is ready to sell, it has provenance—and trading partners have confidence.

Choose a Trading Partner with Matching Values

Stolen oil needs a buyer. The unfortunate truth is that some traders turn a blind eye to red flags—containers without branding, unrealistic route logs or suspiciously new “collectors” with unusually high volumes.

Both traders and collectors bear a responsibility to conduct due diligence on their partners. Knowingly or negligently selling to buyers who aid the movement of stolen or undocumented oil perpetuates the cycle of theft and fraud, damaging the reputation of the entire industry. The choice of a trading partner becomes an implicit statement about the collector’s own operational standards. By choosing the right trading partners with values who work to reduce demand for stolen oil, this strengthens the position of companies in the industry working to strengthen your position.

Reputable firms like Reiter Trading vet their suppliers. They check for red flags, audit route data and build long-term relationships—not just price-based transactions. If a value is placed on these practices, then find a likeminded trader.

Build Strong Relationships with Restaurants

Restaurants are a collector’s frontline allies. Their staff are positioned to notice suspicious activity such as unfamiliar trucks, personnel attempting access outside of scheduled times, or signs of tampering with locked tanks. Building trust through reliable service, clear communication and fair dealings makes restaurants far more likely to report such incidents promptly.

When they know a UCO collector is dependable and legitimate, they’re far more likely to report things like stolen containers or rogue collectors trying to undercut contracts.

As a professional tip, provide clients with incident-documentation forms and encourage them to take photos if something seems off. Being proactive strengthens partnerships and protects a collector’s footprint.

Prepare for Regulatory Audit—Before It Comes

If collected UCO flows into the renewable fuel stream—and if it’s sold to a company that claims tax credits, it almost certainly does—then the parties involved are part of a regulated supply chain. Auditors will primarily focus on verifying the legitimacy and traceability of the feedstock. They will demand access to comprehensive records: point-of-origin documentation (restaurant addresses), detailed collection logs (dates, times, volumes), transfer documents establishing chain of custody, restaurant-account histories and, potentially, records related to container management.

Auditors may request records dating back up to 10 years. That means collection logs, location data, account histories and container documentation must be stored and digitally accessible. Waiting until an audit is announced is too late. Collectors who are prepared not only avoid fines, but they also gain a reputation as trustworthy professionals in a maturing market.

Final Thought: The Market Is Watching

In a tightening regulatory landscape, the path to profitability is paved with accountability. Every reputable collector has a role to play in pushing out bad actors, preserving market value and safeguarding the clients who rely on us. Economically, the adoption of best practices and technology unlocks significant advantages. Documented compliance provides access to premium markets. Technology-driven efficiencies in routing, scheduling and administration reduce operational costs and free up resources for growth. Building a reputation for reliability and integrity attracts both restaurant clients and downstream buyers. Plus, when it comes time to retire, detailed records and high-integrity business practices increase company value.

Reiter Trading is proud to work with collectors who operate with transparency, efficiency and pride. If you’re building a business that puts ethics first, let’s build the future of UCO trading together.

Author: Kristof Reiter

CEO, Reiter USA

888-428-5617

kristof@reiterscientific.com