Measurement economic outcome of nitrogen management certification system for different dairy stakeholders

The 2011 World Economic Forum first postulated “nexus thinking”after years of research and development. The use of nitrogen management technologies (NMT) in the daily production process can help achieve optimization of resource allocation of various sectors in the daily production supply chain, improve MNE (milk nitrogen efficacy) and reduce land, water use, and ammonia release [1]. However, success for the application of scientific research in industry requires the sustainable and stable decision-making behaviors or actions of stakeholders related to the dairy production supply chain. According to theories of human behavior [2], the two decision factors that produce behavior are external evaluation and perceived control of the process. We propose the following research schemes around these two decisive factors. At the external evaluation is analyzed using two methods. The first is to identify core sectors of the entire industry chain around the circular economy conceptual model constructed. The second is through interviews or field surveys of the existing performance evaluation indicators of core stakeholders (such as: production by variety, sales volume, price volatility, market share by region, etc.); and through literature research to establish a quantitative correlation between the traditional performance indicators and nitrogen management technology indicators (such as: crude protein (CP) and P in all feed, whole-farm nutrient use efficiency, feed use efficiency, and acres receiving manure) [3][4][5]. For the perceived control process factor, we choose the hybrid Input-Output (IO table) approach by adding FEW（food energy water） commodities [6,7]. There are two reasons for this: the first is the input-output technology and economic model connects stakeholders in each sector of the supply chain in the same value chain, helping to solve changes in internal and external factors such as market demand, international trade, industry, employment policies, technological improvements, and analysis of possible impacts of stakeholders in various sectors. The IO table is one of the most familiar and commonly used analysis models for stakeholders. The second reason is based on the regional data available from state and national statistical offices. Our research includes the following three contents: First, the quantitative correlation established in the previous step (between the performance appraisal indicators commonly used by stakeholders and NMT indicators) is used to build a new hybrid-IO table, which reflects a new input-output relationship among the various sectors. The second is analyze possible future changes to various stakeholders and design simulation scenarios on the hybrid-IO model.