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Analysis of livestock manure utilization in planting and breeding supply chain with organic preference

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Abstract

With the enhancement of people’s awareness of green development, the supply chain management of circular agriculture with integrated planting and breeding that can effectively utilize resources becomes particularly important. In order to promote the sustainable development of agriculture, the supply chain network equilibrium methodology is adopted to construct a planting and breeding integration supply chain model with considering economic and environmental objectives under the influence of market consumers’ organic preferences. The result shows that the profit and carbon sequestration of the planting and breeding integration supply chain are increasing with the increase of market size and organic preference, and the performance is better than single-production mode. Strikingly, farmers marginal profit does not always increase monotonically and retailer profits could be compromised by the fact that the growth of market price sales is less than that of production costs. This study provides effective organic manure decisions in planting and breeding integration supply chain for farmers under different market conditions, which could promote green production and sustainable agricultural development.

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Acknowledgements

This research has been supported by National Natural Science Foundation of China (71803084), Humanity and Social Science Project of Ministry of Education of China (22YJA630033), Social Science Foundation of Jiangsu Province (21GLC003), Fundamental Research Funds for the Central Universities (NAU: SKYZ2022043).

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Authors and Affiliations

  1. College of Information Management, Nan**g Agricultural University, Nan**g, 210031, People’s Republic of China

    Yi** Jiang, Yalan Cheng & Kunru Li

  2. School of Economics and Management, Southeast University , Nan**g, 211189, People’s Republic of China

    **-Jiang-Aff1">Yi** Jiang

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  3. Yalan Cheng
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  4. Kunru Li
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  5. **aoling Fu
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  6. Shuyi Feng
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  7. Baoai Xu
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Correspondence to Yi** Jiang.

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Appendix

Appendix

1.1 Appendix A

Table A

Nomenclature

Notations

\(i\)

The farmer, \(i=\text{1,2}\ldots ,M\).

\(j\)

The retailer, \(j=\text{1,2}\ldots ,N\).

\(k\)

The demand market, \(k=\text{1,2}\ldots ,K\).

Decision variables

\({Q}_{i}\)

Quantity of agri-products planted by farmer\(i\), \(Q={{(Q}_{i})}_{M\times 1}\in {R}_{+}^{M}\).

\({q}_{ij}\)

The transaction volume of planting agri-products from farmer\(i\) to retailer \(j\), \({Q}^{1}=({{q}_{ij})}_{MN\times 1}\in {R}_{+}^{MN}\).

\({e}_{i}\)

Ratio of organic manure substitution for chemical fertilizer determined by farmer \(i\), \(e_{i} \in \left[ {0,{\text{~}}1} \right]\), \(e=({{e}_{i})}_{M\times 1}\in {R}_{+}^{M}\).

\({b}_{ij}\)

The transaction volume of breeding agri-products from farmer\(i\) to retailer \(j\), \({B}^{1}=({{b}_{ij})}_{MN\times 1}\in {R}_{+}^{MN}\).

\({q}_{jk}^{i}\)

The transaction volume of farmer \(i\)’s planting agri-products from retailer \(j\) to demand market \(k\), \({Q}^{2}=({{q}_{jk}^{i})}_{MNK\times 1}\in {R}_{+}^{MNK}\).

\({b}_{jk}\)

The transaction volume of breeding agri-products from retailer \(j\) to demand market \(k\), \({B}^{2}=({{b}_{jk})}_{NK\times 1}\in {R}_{+}^{NK}\).

\({p}_{k}^{i}\)

Price of market \(k\) for farmer \(i\)’s planting agri-products. Market \(k\)’s \({p}_{k}^{i}\) form the \(M\) dimension vector \({p}_{k}\), \(p=({{p}_{k})}_{KM\times 1}\in {R}_{+}^{KM}\).

\({pb}_{k}\)

Price of market \(k\) for retailer \(j\)’s breeding agri-products,\(pb={{(pb}_{k})}_{K\times 1}\in {R}_{+}^{K}\).

Endogenous variables

\({p}_{ij}\)

Price of planting agri-products paid by retailers \(j\) to farmers\(i.\)

\({pb}_{ij}\)

Price of breeding agri-products paid by retailers \(j\) to farmers\(i.\)

\({p}_{jk}^{i}\)

Price of farmer \(i\)’s planting agri-products paid by consumers in demand market \(k\) to retailer \(j\).

\({pb}_{jk}\)

Price of breeding agri-products paid by consumers in demand market \(k\) to retailer \(j\).

Parameters

\({P}_{c}\)

Price of per unit chemical fertilizer.

\({L}_{c}\)

Per unit of agri-product’s fertilizer consumption.

\({P}_{o}\)

Price of per unit organic manure.

\({P}_{s}\)

Price of per unit organic manure that is sold by farmers.

\({L}_{o}\)

Per unit of agri-product’s organic manure consumption.

\(z\)

Transportation cost of per unit fertilizer.

\(h\)

Output of livestock manure of per unit breeding agri-product.

\(s\)

Conversion ratio of livestock manure into organic manure.

\({E}_{c}\)

Carbon emissions of unit of agri-products using chemical fertilizer.

\({E}_{o}\)

Carbon sequestration of per unit of agri-products using organic manure.

\({D}_{b}\)

Demand of breeding agri-products in each market.

\(t\)

The weight of farmers’ environmental benefits, that is, social responsibility.

\(\tau\)

Organic preference of demand markets for planting agri-products.

\(\underset{\_}{e}\)

Quality requirement of demand markets for planting agri-products, \(\underset{\_}{e}=0.1\tau\).

Functions

\({G}_{i}\left({e}_{i}\right)\)

Yield multiplier of planting agri-products substituting chemical fertilizer by organic manure.

\({f}_{i}({Q}_{i},{e}_{i})\)

Planting cost of farmer \(i\).

\({fb}_{i}\left({b}_{ij}\right)\)

Breeding cost of farmer \(i\).

\({fo}_{i}\left({b}_{ij}\right)\)

Conversion cost of the livestock manure of farmers \(i\) into organic manure.

\({c}_{ij}\left({q}_{ij}\right)\)

Transaction cost of planting agri-products between farmer \(i\) and retailer \(j\).

\({cb}_{ij}\left({b}_{ij}\right)\)

Transaction cost of breeding agri-products between farmer \(i\) and retailer \(j\).

\({c}_{jk}^{i}\left({q}_{jk}^{i}\right)\)

Transaction cost of farmer \(i\)’s planting agri-products between retailer \(j\) and demand market \(k\).

\({cb}_{jk}\left({b}_{jk}\right)\)

Transaction cost of farmers’ breeding agri-products between retailer \(j\) and demand market \(k\).

\({d}_{k}^{i}({p}_{k},{e}_{i})\)

Demand for farmer \(i\)’s planting agri-products in demand market \(k\).

\({db}_{k}\left(pb\right)\)

Demand for farmers’ breeding agri-products in demand market \(k\).

1.2 Appendix B

Table B.

figure a
figure b
figure c

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Jiang, Y., Cheng, Y., Li, K. et al. Analysis of livestock manure utilization in planting and breeding supply chain with organic preference. Environ Dev Sustain 26, 14295–14326 (2024). https://doi.org/10.1007/s10668-023-03194-0

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