Side-product

A by-product is a secondary product derived from a manufacturing process or chemical reaction. It is not the primary product or service being produced. In the context of production, a by-product is the 'output from a joint production process that is minor in quantity and/or net realizable value (NRV) when compared with the main products'. Because they are deemed to have no influence on reported financial results, by-products do not receive allocations of joint costs. By-products also by convention are not inventoried, but the NRV from by-products is typically recognized as 'other income' or as a reduction of joint production processing costs when the by-product is produced. A by-product can be useful and marketable or it can be considered waste.

IEA defines "by-product" in the context of life-cycle assessment: "... main products, co-products (which involve similar revenues to the main product), by-products (which result in smaller revenues), and waste products (which provide little or no revenue)."

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