The invention is an improved system for separating waste products into several components and then providing for total utilization thereof. The systemitized arrangement integrates numerous automatic operations to produce the separation of the components and then provides for automatically directing the separated components to ultimate destinations for total utilization. The system first processes bulk waste products such as garbage, rubbish, and other discarded material and shreds it into small size particles. The shredded waste products are then mixed with sewage sludge received from another source. The mixture is then processed through a controlled sludge composting means. At this point a first benefit is derived by means of hot exhaust air from the controlled sludge composting means being directed to a hot house structure to aid in the growth of food products. Following the controlled sludge composting means the resulting compost is separated by screening and the fine material is further cured for direct use in agriculture and gardening type operations. The large particles are further separated by magnetic and ballistic means into various components for specified distribution and uses. Concurrently, following the aforementioned shredder, a high velocity air classifier directs the paper, light plastics, and similar waste matter to an incinerating process for generating steam which is used for heating, generating electricity, and other useful purposes. The automatic operations eliminates the need for manual labor for separation and classification operations.