Underground economy of illegal cooking oil has caused serious and widespread harm to public health, ecological environment and related industries. This paper extends the damage, personal injury, and the theoretical framework of industry harm analysis, mainly from the angle of supply chain, the activity of illegal cooking oil and its symbiotic black comprehensive damage in the generalized system of agricultural supply chain. Research shows that the illegal cooking oil underground economy relies mainly on the low price to grab market, input toxic food, counterfeit brand edible oil supply chain, rely mainly on lifting raw material prices, violence, exclusive way infringe on biomass such as supply chain, in addition to breeding, feed and other industries also have damage. Based on the historical and logical methods, the damage of illegal cooking oil shows the historical period of germination and gestation period, accumulation and accelerated development period, strict management and control period, etc. Further, combine “evacuation and blockage”governance of kitchen waste (cooking oil) the effect of the three possible states (evacuation and blockage deterioration of inefficient state, evacuation and blockage unbalanced state of partially effective, effective ideal of Evacuation and blockage ) placed in a unified framework of analysis, can be found that illegal cooking oil diffusion and transfer of the underground economy damage shows the characteristics of complex, not only harm the way change, harm the object, criminal policy, and harm will occur degeneration and spillover.