By-Product vs Waste: Why Classification Matters

How your material is classified has significant commercial and legal implications. A substance classified as waste is subject to extensive regulatory controls — duty of care requirements, waste transfer notes, carrier licensing, and restrictions on how it can be stored, transported and used. A substance classified as a by-product is treated as a product and can be traded and used with far fewer regulatory burdens.

Under the UK Waste Framework Regulations (derived from Article 5 of the EU Waste Framework Directive), a substance qualifies as a by-product rather than waste when all four of the following conditions are met:

• Further use is certain — there is a confirmed use for the substance, not just a possibility of one.
• It can be used directly — without any further processing beyond normal industrial practice.
• It is produced as an integral part of a production process — not generated by a separate waste treatment operation.
• Further use is lawful — it meets all relevant product, environmental and health protection requirements and will not lead to adverse impacts.

For agri-food processors, by-product classification can transform a disposal cost into a revenue stream. Valorise can help you assess whether your material meets the by-product criteria and connect you with partners who provide the "certain further use" needed for classification.

End of Waste Criteria

Even if a material initially falls under the waste classification, it can achieve "End of Waste" status once it has undergone a recovery operation and meets specific criteria. Under the UK framework, waste ceases to be waste when:

• The substance or object is commonly used for specific purposes.
• A market or demand exists for the substance or object.
• It fulfils the technical requirements for the specific purposes and meets existing legislation and standards applicable to products.
• Its use will not lead to overall adverse environmental or human health impacts.

The Environment Agency can issue End of Waste opinions for specific waste streams. Obtaining this status can significantly increase the commercial value of processed by-products by removing the regulatory burden of waste classification from downstream users.

Duty of Care

Under Section 34 of the Environmental Protection Act 1990, anyone who produces, imports, carries, keeps, treats or disposes of controlled waste has a duty of care. This applies to all businesses handling agri-food by-products that are classified as waste.

Key requirements include:

• Preventing the escape of waste from your control, or that of any other person.
• Ensuring waste is only transferred to an authorised person (a registered waste carrier or permitted facility).
• Providing an accurate written description of the waste to enable safe handling and regulatory compliance.
• Completing a waste transfer note or, for hazardous waste, a consignment note for each transfer.
• Retaining waste transfer documentation for a minimum of two years (three years for hazardous waste).

Valorise helps by connecting you with authorised carriers and processors, ensuring that every exchange through our platform is compliant with duty of care requirements.

Mandatory Digital Waste Tracking

The rollout is phased:

• October 2026: Mandatory for all permitted and licensed waste receiving sites in England, Wales and Northern Ireland. Scotland follows from January 2027.
• October 2027: Mandatory for waste carriers, brokers and dealers.
• Future phases: Waste producers will eventually be required to enter waste classification details onto the service.

Organisations will be required to digitally record specific information for each waste movement, including waste classification codes (European Waste Catalogue), unique tracking references, details of dispatching and receiving parties, and confirmation of treatment outcomes.

Even if your business isn't in the first wave of mandatory compliance, the waste receiving sites and carriers you work with will be recording your waste movements digitally from October 2026. This means your materials need to be properly classified and documented.

What This Means for Agri-Food Businesses

The new tracking system creates both obligations and opportunities. On one hand, you'll need to ensure your by-product and waste streams are properly classified and documented. On the other, the increased transparency may help demonstrate the value of materials currently being disposed of as waste — supporting the case for by-product reclassification and new valorisation partnerships.

Valorise can help you prepare for Digital Waste Tracking by ensuring your material descriptions are accurate, your classifications are correct, and your disposal or valorisation routes are properly documented.