Co-products are products that are produced simultaneously or in the same manufacturing process. Examples include Airbus aircraft and Ariane rockets, corn production plants, and packaging in food manufacturing. Co-production can involve sharing parts, personnel, technology, or equipment.
A co-product is when a manufacturer produces two similar products at the same time. A co-product can also be the product that is manufactured right after another product due to the similarities between the two products. Even if the products are not the same or similar, if the process for making the two products is the same or similar, this is also a co-product situation.
An example of a co-product is the Airbus aircraft and the Ariane rocket. These products are manufactured in manufacturing facilities spread across Europe. They are co-produced because the two items have similar parts and manufacturing process.
Often, co-products require several manufacturers to produce the parts for the co-products. These different parts are then brought together to create the same final product. While different manufacturing companies in Europe produce the different parts, eventually, the parts go into the production of Ariane rocket and Airbus airplane.
In addition to sharing parts, co-production can also involve sharing other elements. For example, a co-product may be the sharing of key personnel, staff or employees among more than one manufacturing company. It can also involve an agreement between more than one firm to share technology, such as computers, software, machinery or equipment.
Another good example of a co-product comes from manufacturing plants in Iowa. These plants are responsible for the corn production industry. The state grows plants that produce ethanol, corn sweeteners, and corn oil. During the dry mill and wet mill production processes of the plants, they are also able to produce cattle feed as a co-product at the same time.
In food manufacturing plants, there is another type of co-product in packaging. This is when the product that goes into the box is the same, but the labels and branding on the box are different. For example, a manufacturing facility that produces and packages green beans may produce canned green beans for a branded vegetable company as well as general store branding. While the labels are different, the contents are the same.
Similar situations can occur with other objects. A bicycle manufacturer can produce bicycles for two different companies. When the bikes are made in the same factory, this is a co-product situation. If two bicycle manufacturers source the parts to make their bicycles from the same places, this is also a co-product situation.
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