1. Introduction

2. Contextualising about the importance of intangibles in sustaining smallholder family-based broiler production

3. Material and Methods

3.1. Mainstream economic cost model

The economic cost model was developed according to the Economic theory, considering the total cost as the result of the summatory of the variable cost and the fixed cost (total cost = variable cost + fixed cost) and following the model proposed by Nacimento et al. [27] (Figure 1). The calculation memory is provided in the Supplementary Material 1.

Figure 1. Scheme representing the division of inputs to the cost assessment in a conventional broiler production system. The inputs are divided according to their respective partners in variable and fixed costs. Note: dashed line square shows the inputs under smallholder responsibility; continuous line square shows the inputs under processing firm responsibility. Despite some particularities among broiler processing firms, this is the most common division of responsibilities. * Production cost factor: opportunity cost of working capital, land, facilities and equipment use

Figure 1. Scheme representing the division of inputs to the cost assessment in a conventional broiler production system. The inputs are divided according to their respective partners in variable and fixed costs. Note: dashed line square shows the inputs under smallholder responsibility; continuous line square shows the inputs under processing firm responsibility. Despite some particularities among broiler processing firms, this is the most common division of responsibilities. * Production cost factor: opportunity cost of working capital, land, facilities and equipment use

3.2. Alternative economic cost model: Emergy synthesis as a way to include the intangibles

The study followed three steps established by Odum [23] and the suggestions by Brown and Ulgiati [28] as follows: (i) construction of a diagram of the energy flow of the system, defining the energy sources, the system boundaries and the internal components (producers, consumers, stocks, interactions, etc.); (ii) organisation of data in an Emergy table, listing all resources and later classifying them as natural (I) or economic (F). The sum of these inputs (Y = I + F) demonstrates the value in Emergy; and (iii) calculations of Emergy indicators and discussion of the results for practical purposes. The transformities (Tr) of the items listed in the calculation table were obtained from the scientific literature and, when necessary, corrected to the biogeosphere Emergy baseline proposed by Brown et al. [29] (12.0 $\times {10}^{24}$ seJ/J). For further detailed information on the Emergy methodology, please see Odum [23].

As a way to include the important variables (intangibles) of smallholder family-based broiler production into economic data, the following three approaches were considered: (i) estimative of cultural information transformity based on the Emergy theory; (ii) transformity assessment for the Smallholder broiler family labour force with and no cultural information; (iii) estimative of a more balanced payment for the smallholder broiler family. All these three approaches are detailed and separately presented in the following sections.

3.2.1. Estimative of cultural information transformity based on the Emergy theory

For Odum, information consists of the unit, connections and configurations of systems. Also, information is responsible for carrying the material-energy of some kind [17]. Information carriers are subject to the second law of thermodynamics (entropy) and must be maintained with “information cycles” that comprehend selection, extraction, copying and dispersal [17]. The information has as functional activity (i) to maintain time-tested energy pathways and processes and (ii) to provide control in system designs that (self-)organise for maximum empower [17,24].

According to Abel [17], any information transformities could only be calculated in area and populational analyses. Thus, the method could provide an ‘areal’ and ‘populational’ calculation of information transformities, specifically considering the human body, information and DNA creation and maintenance concerning energy storage and flow. In this sense, the evaluation of storage is intended to represent the original production of information, whereas the evaluation of flow is intended to represent the maintenance of information.

In this study, the method used to estimate the cultural information of Santa Catarina State citizens followed an Emergy-based model proposed by Odum and Doherty [30] and Odum [23], using populational information from Santa Catarina State, Brazil, for 2018, according to the Brazilian Institute of Geography and Statistics [31]. For the authors, there is the comprehension that the social interactions among indigenous people suffered over the past ~100 years; the earliest and newest European immigrant people were responsible to promote the needed knowledge exchange to push and strengthen the broiler industry on the West of Santa Catarina State (Supplementary Material 2, sheet “Cultural information”), making cultural information an important control flow for the broiler industry (Table 1).

3.2.2. Transformity assessment for the broiler smallholder service with and without cultural information

To determine the Tr of the work from the broiler smallholder, “areal” and “populational” data were recorded from governmental agencies reports for the City of Concórdia, Brazil, following the steps according to Su et al. [32]. The City of Concórdia was selected due to its current and historical importance in Brazilian broiler production, being the cradle of modern Brazilian broiler production. The reports compiled the data of forests and water bodies, agricultural lands, and uncovered areas; import and export trade data were collected to analyse the Emergy flows of urban ecosystems (Figure 2).

The renewable resources flowing into the urban ecosystem included sunlight, rain (geopotential energy and chemical potential energy), wind and earth cycle (for further details, see Supplementary Material 2, sheet “Manpower”). The non-renewable resources were associated with the support of citizens to assure social welfare. According to Odum [23], the three kinds of inputs of different transformities that may be required for human individual benefit (humane welfare) are as follows: (i) environmental influence; (ii) exergy-level support (available energy of medium transformity sources such as fuels and electricity) and (iii) informational exchange. Also, the waste may perform as a negative influence. On the other hand, in modern society, humans provide their workforce as the main output and receive monetary payment [26]. Thus, the non-renewable resources included food, hydroelectric power, fuel (ethanol, gasoline and lubricants), natural gas, information, wages and solid waste treatment (Figure 3).

3.2.3. Estimative of a holistic view-based payment for the broiler smallholder by their services

The model used to estimate a holistic view-based payment for the smallholder broiler family by their services was based on the Emergy exchange ratio (EER) proposed by Odum [23]. For Odum, this indicator can help to develop equity in trade, employing shared information among the agents and increasing the benefits for them. This indicator considers the Emergy exchanged in a trade or purchase (the given Emergy in product form and the received Emergy in money form) and is generally expressed concerning one trading partner or the other trading partners. Is a measure of the relative trade advantage of one partner over the other [28]. Thus, the best result for EER is 1.0, indicating a balanced trade under Emergy units among the trading partners. In this sense, in a holistic view, the EER can indicate an imbalanced Emergy trade between the buyer (processing firm) and the smallholder broiler family using the buying power of money paid for this end.

First, the Emergy accounting model is used to evaluate the Emergy flows according to Nacimento et al. [33] (Figure 4). The model was filled using data previously recorded from the Embrapa Suínos e Aves reports [34,35]. This report provides information regarding broiler production system features, buildings and management for representative broiler systems at Santa Catarina State. For the monetary data collection, interviews with producers, technical staff and experts in broiler production were conducted. The Emergy flows were divided into agroindustry (processing firm) and producer (smallholder broiler family) according to each input under their responsibilities, as previously shown in the Economic cost calculation. The detailed calculation memory is available in Supplementary Material 3.

Second, the EER was used considering only the Emergy flows of the broiler smallholder. Thus, the EER was the ratio between (i) the economic and socioenvironmental costs under the responsibility of the broiler smallholder in Emergy terms and (ii) the wealth provided in monetary terms and received by the smallholder broiler family for its services (broiler rising), as follows:

$$EE{R}_p=\frac{Y_p}{Price\times EMR}$$

(1)

If $EE{R}_p=1$,

$$1=\frac{Y_p}{a\times EMR}$$

(2)

in which $EE{R}_p$ is the Emergy exchange ratio for the producer (adimensional), and$Y_p$ is the Emergy of the inputs under the responsibility of the producer (sej/yr). To this end, as inputs were considered those inputs under smallholder broiler responsability inputs used to calculate the economic costs. The$Price$ is the price received as payment for the smallholder broiler family services in 2018 (USD/yr);$EMR$ is the Emergy/money ratio for the Santa Catarina State previously assessed by Demétrio [36]. An average EMR (sej/$) can be calculated by dividing the total Emergy use of a state or nation by its gross economic product. The EMR can be defined as the Emergy supporting the generation of one unit of economic product (expressed as currency) and is used as the economic equivalent of Emergy. The contribution to a process represented by monetary payments is the Emergy that people purchase with the money since money is not paid to the environment. Also, the amount of resources that money buys depends on the amount of Emergy supporting the economy and the amount of money circulating [37,38]. For Brown and Ulgiati [38], the EMR is useful for evaluating service inputs given in money units, where an average wage rate is appropriate. The$a$ is the searched value as the more balanced payment in monetary equivalent under the balanced condition $EE{R}_p=1$.

Thus, Emergy with and without cultural information was used to suggest a holistic view-based payment for the smallholder broiler family. For the model implementation and test, the Solver tool (MS-Excel) by means of the non-linear GRG solution method was used. For further details, see Supplementary Material 3.

Figure 4. Emergy diagram for a representative broiler production system in Santa Catarina State.

Figure 4. Emergy diagram for a representative broiler production system in Santa Catarina State.

4. Results and Discussion

4.1. Valuing cultural information

The Tr for the culture information storage of citizens of Santa Catarina was 2.77$\times {10}^{10}$ sej/J (Table 1). As expected, this result is near the native culture storage demonstrated in Odum [23] and depicted in graphical form by Abel [16]. It is also close to the value of traditional farming culture storage for the Oak Openings region found by Higgins [39].

Table 1. Emergy evaluation of culture information of Santa Catarina citizen, Brazil.

Table 1. Emergy evaluation of culture information of Santa Catarina citizen, Brazil.

					Solar	Em$Value
			Energy	Transformity	EMERGY	(emdollar/yr)
	Item	Unit	(units/yr)	(sej/unit)	($\times {10}^{13}$sej/yr)	in millions
			Annual Flow
1	Renewable resource	J			5.60$\times {10}^9$	23,769.10
2	Human metabolism	J	2.71$\times {10}^{16}$	2.06$\times {10}^6$	5.60$\times {10}^9$	23,769.10
3	Information flow	J	2.71$\times {10}^{15}$	2.06$\times {10}^7$	5.60$\times {10}^9$	23,769.10
			Steady-state Storage
			(sej)	(sej/J)	($\times {10}^{13}$ sej)	(emdollar)
						in millions
4	Population	J	2.02$\times {10}^{15}$	9.13$\times {10}^8$	1.85$\times {10}^{11}$	784,380.31
5	Culture information	J	2.02$\times {10}^{14}$	2.77$\times {10}^{10}$	5.60$\times {10}^{11}$	2,376,910.02

Note: Number of citizens of Santa Catarina state: 7,1 millions of people; Emergy/money ratio from Santa Catarina state: 2.36$\times {10}^{12}$ sej/USD [36]; the method proposed to estimate the Culture information follow the equations suggested by Odum [23] and Odum and Doherty [30]; for further detail see Supplementary material 2, sheet “Cultural information”.

• ¹ The Emergy of renewable resources for Santa Catarina State was obtained from data previously published by Demétrio [36].
• ² Human metabolism.

Used Energy (J) = (7.1E06 people)(2500kcal/day)(4186 J/kcal)(365day/yr) .

Used Energy (J) = 2.71E+16 J/yr.

Transformity = (Emergy of Renewable resource) / (Human metabolism).

• ³ Information flow:

Used Energy (J) = (Used Energy)(10%) .

Used Energy (J) = 2.71E+15 J/yr.

Transformity = (Emergy of Renewable resource) / (Information flow).

• ⁴ Population:.

Used Energy (J) = (0.2 dry)(454 g/lb)(7.4E4 people)(150 lb ea)(5 kcal/g)(4186 J/kcal) .

Used Energy (J) = 2.02E+15 J/yr.

EMERGY = (Aver. age)(Renewable resources) .

EMERGY = (33yr)(Renewable resources) .

EMERGY = 1.85E+24 sej.

Transformity = (Emergy of Population) / (Used Energy).

• ⁵ Culture information:.

Used Energy (J) = (Energy used)(10%) .

Used Energy (J) = 2.02E+14 J/yr.

EMERGY = (Renewable resources)(100yr) .

EMERGY = 5.60E+24 sej.

Transformity = (Emergy of Culture information) / (Used Energy).

An Emergy-based culture evaluation can be made using the energy-matter inputs and time required for cultural development [23]. For this, this study adopted a time window of 100 years. For the authors, the events and interactions as well as the information and knowledge exchange that occurred in this period between the earliest and the newest people (i.e., immigrants and indigenous people) allowed the broiler production chain in South Brazil to become stronger. For Abel [17], using the ‘areal’ and ‘populational’ calculation facilitates an estimation of the quality of the information by means of Tr for an original production of information. Thus, the Tr represents the quality of generational information about broiler production over the 100 years to which the smallholder family had access. In addition, the Tr of cultural information is similar to the spectrum of legacy and public status. Since the Tr represents the quality information, the information is the legacy built from the successes and failures of the first Brazilian broiler producers.

5. Conclusions

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