Valorization of co-products : the competition among uses
The valorization of co-products, or by-products, in the agri-food industry is an essential component of the circular economy. In a context of increasing regulatory pressure, particularly driven by the European Union, this valorization intersects with multiple challenges. Co-products can be utilized in various fields such as human food, animal feed, bioenergy production, and the extraction of biomolecules. However, this diversity of options creates competition for the most profitable and sustainable uses. What priorities and strategic choices are emerging ?
The Valorization Pyramid: A Hierarchical Framework for Uses
The valorization pyramid of co-products establishes a hierarchy of uses, where the most sustainable options, such as human and animal food, are at the top, while uses like landfilling and incineration occupy the base, representing last-resort solutions.
The different levels of the valorization pyramid :
1. Human Food : Agro-food residues that can be reused directly or transformed into ingredients for human consumption are the top priority in the pyramid. A striking example is the transformation of potato residues into purées or starches. Thus, part of the 4.6 million tons of by-products from potatoes in Europe is reused to produce value-added ingredients (Source: RESEDA). This helps reduce waste while generating additional revenue for producers.
2. Animal Feed: The valorization of by-products for animal feed is a widely adopted option in the dairy, cereal, and brewing industries. For instance, brewery spent grains, rich in protein, are commonly used as a feed supplement for ruminants. Incorporating by-products into animal feed could reduce production costs by 20% and decrease the demand for crops dedicated to livestock feed (Source: INRA).
3. Biomolecules and Bioproducts: The valorization of by-products into biomolecules and bioproducts is a growing solution. Raw materials like sugar beet and sugarcane by-products are transformed into bioplastics or high-value chemicals. Thus, the European market for bioplastics from by-products could reach €7.2 billion by 2025, partly due to financial support from the European Green Deal (Source: ADEME).
4. Energy Valorization: Although the anaerobic digestion of by-products for energy production is common in the agri-food sector, this option is less profitable in the long term. In Europe, about 30% of agri-food by-products are used for anaerobic digestion, but this solution heavily depends on public subsidies and fluctuations in energy prices.
Competition among uses: economic and environmental issues
The competition among the uses of co-products in the agri-food industry is strongly influenced by economic, environmental, and technological factors. Let’s take two concrete examples of this competition. Sugar beet residues, which represent 50% of the initial volumes of beets, can be used to produce sugar, bioplastics, or bioenergy. Brewers’ grains are also in high demand, primarily in animal feed, where they serve as a protein source for ruminants, but they can also be used to produce biogas in methanization plants or materials for furniture.
Several determining factors create this competition, such as the profitability of different sectors, technical constraints, regulatory developments, and the environmental impact of each valorization option.
Economic Factors
One of the main drivers of competition among uses is economic profitability. Indeed, for some industries, the valorization of by-products is fully integrated into the economic equation.
Profitability varies significantly depending on the sector. For example, transforming by-products into bioplastics generates about €800 per ton, while valorization into food ingredients, such as proteins or fibers, can reach €1,200 per ton. In comparison, by-products used for energy production via anaerobic digestion or incineration offer a much lower return (average return of €20 to €50 per ton).
This competition pushes companies to favor high-value uses when infrastructures and technical capacities allow. Thus, some industries can reduce their costs by 15% by integrating advanced valorization technologies (Source: ADEME).
Technical Factors
The technical complexity of valorizing co-products also plays a central role in the competition among uses. Certain co-products, such as meat residues or dairy by-products, require specific treatments and sophisticated infrastructures to be valorized in food or cosmetic sectors. Liquid co-products, for example, present a particular challenge. Their transformation into animal feed or biomaterials is more costly and complex due to filtration and dehydration requirements. In contrast, transforming them into biomass for energy production is technically more accessible, even if it is less profitable.
The ability of companies to choose suitable solutions, such as on-site transformation or using specific technologies for treating by-products, is a determining factor in optimizing valorization and reducing logistical costs.
Environmental and Regulatory Factors
Environmental issues are another key factor in the competition among uses. Reducing carbon footprints and waste is at the heart of sustainability policies in Europe. Valorization options like reuse for human or animal food generally have a lower environmental impact compared to energy production or composting. Using co-products in animal feed production can thus reduce the demand for crops dedicated to this sector, thereby limiting pressure on agricultural land and water resources.
From a regulatory standpoint, the European Union promotes valorization solutions that align with the principles of the circular economy. The waste framework directive requires companies to prioritize the most sustainable valorization options and imposes strict targets for waste reduction and greenhouse gas emissions. The EU’s Circular Economy Action Plan emphasizes waste reduction and resource efficiency, encouraging more decentralized and local valorization.
Upcyclink: innovative solutions for sustainable valorization
At Upcyclink, we prioritize sustainable uses by focusing on high-value-added co-product valorization, emphasizing the following three levels : feeding humans, then animals, and finally plants and soils. We strive to maximize the reuse of co-products from the agri-food sector, in line with the hierarchy of the valorization pyramid. Upcyclink’s major innovation lies in our on-site valorization solutions. Our SOBRE® processing unit enables companies to treat their co-products directly at their production site, thereby reducing transport costs and associated emissions.
By valorizing co-products into food ingredients or solutions for animal feed, Upcyclink helps companies fully embrace the principles of the circular economy while meeting increasing regulatory demands. With these cutting-edge technologies, we offer an agile and decentralized approach, allowing businesses to enhance their profitability while minimizing their environmental impact.
A complex competition for increased sustainability
The competition among co-product valorization uses is influenced by a multitude of factors, including profitability, technical complexity, environmental regulations, and sustainability issues. For agri-food companies, the key to success lies in adopting innovative approaches and integrating best valorization practices while considering economic and environmental constraints. As European regulations become stricter, companies will need to find a balance between profitability and environmental impacts to optimize the use of their co-products within an increasingly circular framework.