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Hidden Costs Associated with Smallholder Family-Based Broiler Production: Accounting for the Intangibles

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  • Rafael Araujo Nacimento

    (Department of Animal Science, University of São Paulo, São Paulo 05508-220, Brazil)

  • Mario Duarte Canever

    (Agrarian Social Science Department, Federal University of Pelotas, Pelotas 96015-700, Brazil)

  • Cecilia Almeida

    (Graduation Program on Production Engineering, Paulista University, São Paulo 04026-002, Brazil)

  • Feni Agostinho

    (Graduation Program on Production Engineering, Paulista University, São Paulo 04026-002, Brazil)

  • Augusto Hauber Gameiro

    (Department of Animal Science, University of São Paulo, São Paulo 05508-220, Brazil)

  • Biagio Fernando Giannetti

    (Graduation Program on Production Engineering, Paulista University, São Paulo 04026-002, Brazil)

Abstract

The contractual relationship between the processing firm and the broiler smallholder presents incessant conflicts of interest and inequality due to technical and economic discrepancies, leading to an undervaluation of the producers’ remuneration. This study aims to deepen the discussion on searching for a more balanced monetary exchange between processing firms and broiler smallholders based on scientific aspects. For this, the emergy theory and its concepts are used while considering a representative broiler production system at Concórdia, Brazil. The results indicate the importance of including cultural information in the emergy-based model calculation, which achieved the highest emergy contribution (~63%; transformity = 1.73 × 10 8 sej/J) for the broiler smallholder. On the other hand, the cultural information was not sufficient to increase the sustainability of the broiler production system. The results show an imbalance in the monetary exchange between the processing firm and broiler smallholder from both perspectives (the economic and emergy-based ones), which indicates higher values (USD 0.32/broiler and EmUSD 1.62/broiler) than the practiced payment value of USD 0.24/broiler. Evaluating the “(eco)cost” from an emergy-based accounting perspective recognizes that production depends not only on tangible physical resources but also on knowledge, skills and information (“iceberg of value” thinking). Policy and decision makers must therefore consider the promotion of public policies that subside initiatives, including social and environmental welfare programs.

Suggested Citation

  • Rafael Araujo Nacimento & Mario Duarte Canever & Cecilia Almeida & Feni Agostinho & Augusto Hauber Gameiro & Biagio Fernando Giannetti, 2023. "Hidden Costs Associated with Smallholder Family-Based Broiler Production: Accounting for the Intangibles," Sustainability, MDPI, vol. 15(22), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:22:p:15780-:d:1276978
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    References listed on IDEAS

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    1. Abel, Thomas, 2013. "Emergy evaluation of DNA and culture in ‘information cycles’," Ecological Modelling, Elsevier, vol. 251(C), pages 85-98.
    2. Brown, Mark T. & Ulgiati, Sergio, 2016. "Assessing the global environmental sources driving the geobiosphere: A revised emergy baseline," Ecological Modelling, Elsevier, vol. 339(C), pages 126-132.
    3. Maren Radeny & Ayal Desalegn & Drake Mubiru & Florence Kyazze & Henry Mahoo & John Recha & Philip Kimeli & Dawit Solomon, 2019. "Indigenous knowledge for seasonal weather and climate forecasting across East Africa," Climatic Change, Springer, vol. 156(4), pages 509-526, October.
    4. Su, M.R. & Yang, Z.F. & Chen, B. & Ulgiati, S., 2009. "Urban ecosystem health assessment based on emergy and set pair analysis—A comparative study of typical Chinese cities," Ecological Modelling, Elsevier, vol. 220(18), pages 2341-2348.
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