Stakeholder-Driven Circular Agriculture Transformation: Environmental, Economic, and Social Value Creation Through Ecological Innovation in Fuyang, China

Abstract

The circular economy paradigm offers a critical framework for addressing agricultural sustainability challenges, yet limited empirical evidence exists regarding how ecological innovations create simultaneous value across environmental, economic, and social dimensions. This study examines stakeholder value creation mechanisms through a 200-day longitudinal case study (March–October 2025) of Fuyang, China’s ecological transformation utilizing exciton-mineral technology for livestock waste valorization. The mixed-methods approach combined environmental monitoring, economic performance data, social surveys (n = 4523), and governance document analysis across operations processing 3000–4500 tons of poultry waste monthly. Results indicated significant environmental improvements including 99.4% odor reduction (NH₃: 999 → 5.6 ppm), 387% soil biodiversity increase, and 42% methane emission reduction. Economic benefits included +20% farmer net profit and +57% egg price premium. Social outcomes encompassed 96.2% resident satisfaction and complete elimination of odor complaints. Governance innovation established China’s first permit-free bio-mineral production system. The findings suggest that ecological innovations embedding circularity as automatic outcomes, rather than requiring behavioral coordination, can accelerate circular agriculture transitions beyond policy mandates, pointing to a potentially scalable model for sustainable production–consumption systems in developing economies.

1. Introduction

China’s livestock sector generates over 3.8 billion tons of waste annually, yet fewer than 60% of livestock operations achieve the government’s 80% comprehensive utilization target established under the Ministry of Agriculture and Rural Affairs (MARA) 14th Five-Year Plan for National Agricultural Green Development [1,2,3]. In Fuyang, Anhui Province, indoor ammonia concentrations in composting facilities reached 999 ppm—approximately 40 times the occupational exposure limit (OEL)—before an ecological innovation reduced this figure by 99.4% within 15 days. This study examines how ecological innovations embedding circularity as automatic production outcomes, rather than requiring behavioral coordination, can transform the ‘livestock waste paradox’ [4,5] into multi-stakeholder value creation opportunities. The magnitude of this compliance gap is illustrated by comparison with national odor emission standards (Figure 1), which establish benchmark concentrations that the vast majority of livestock facilities currently fail to meet. Specifically, the national standard GB14554-93 [6] establishes unorganized emission concentration limits (mg/m³) by zone classification as follows: NH₃ at 1.0 (Class I), 2.0 (Class II), and 5.0 (Class III); H₂S at 0.03, 0.10, and 0.60; trimethylamine at 0.05, 0.15, and 0.80; methyl mercaptan at 0.004, 0.010, and 0.035; and odor concentration (dilution factor) at 10, 30, and 70, respectively. Prior to intervention, baseline measurements of 999 ppm (indoor) and 506 ppm (outdoor at 1 km) exceeded these standards by several thousand-fold, whereas post-intervention levels (≤5.6 ppm) fell within the Class II–III compliance range, confirming achievement of regulatory-grade environmental standards.

This study introduces the concept of ‘automatic circularity’—technological configurations in which resource recovery and environmental restoration occur as inherent by-products of the production process itself, without requiring additional behavioral coordination, regulatory enforcement, or targeted economic incentives. Unlike conventional circular economy approaches that depend on deliberate behavioral change (‘managed circularity’), automatic circularity embeds environmental restoration as a structural feature of economically rational operations. The exciton-mineral technology examined in this study exemplifies this principle: a physical activation system utilizing mineral-surface electron excitation to catalyze decomposition of livestock waste while simultaneously producing nutrient-rich soil amendments as automatic co-products of the treatment process. This concept, developed further in Section 2.5, provides the central theoretical lens through which we analyze the Fuyang transformation.

The Circular Bioeconomy framework offers a promising paradigm for transforming agricultural residues from waste liabilities into value-creating resources [7,8]. However, implementing circular agriculture principles encounters substantial barriers, including technological limitations in waste treatment efficiency, economic constraints on farmer adoption, social resistance from affected communities, and governance challenges in regulatory coordination [9,10]. These multi-dimensional barriers create what Korhonen et al. [11] describe as the ‘implementation gap’ between circular economy aspirations and practical transformation.

China presents a particularly instructive context for examining circular agriculture transitions given its scale of livestock production and policy emphasis on ecological civilization. The country’s livestock sector has undergone rapid industrialization, with large-scale operations increasingly replacing traditional family-based production [12,13]. This structural transformation has intensified waste management challenges, as concentrated animal feeding operations generate point-source pollution exceeding local environmental carrying capacity [14]. Recent regulatory developments, including the MARA 14th Five-Year Plan target of 80% comprehensive utilization rate for livestock and poultry manure by 2025, applicable to operations above designated scale thresholds across cattle, swine, and poultry sectors [3], have created urgent imperatives for technological and institutional innovation.

Despite extensive scholarship on circular economy principles and sustainable agriculture practices, several critical gaps persist in the literature. First, existing studies predominantly examine singular dimensions of circular agriculture—environmental performance, economic viability, or social acceptance—rather than investigating integrated mechanisms through which ecological innovations create simultaneous value across multiple stakeholder groups [15,16]. This fragmented approach limits understanding of synergies and trade-offs characterizing real-world circular transitions.

Second, the majority of circular agriculture research relies on ex-post survey methodologies or theoretical modeling, providing limited insight into temporal dynamics of transformation processes [5]. Longitudinal empirical evidence documenting how circular systems evolve from implementation through scaling remains scarce. This gap is especially pronounced in developing economy contexts, where infrastructure constraints and stakeholder configurations differ substantially from the European and North American settings that dominate the literature [10,17,18,19].

Third, while stakeholder theory has been extensively applied to corporate sustainability contexts [20,21], its application to agricultural system transitions remains underdeveloped. The unique characteristics of agricultural stakeholder networks—dispersed farmer populations, place-based community impacts, and complex regulatory environments—require theoretical refinement beyond conventional frameworks [22,23].

This study addresses these gaps through a comprehensive longitudinal case study of Fuyang, China’s ecological transformation utilizing exciton-mineral technology for livestock waste valorization. The study pursues three interrelated research objectives: (1) to examine how ecological innovation creates value for multiple stakeholders in circular agriculture systems, integrating environmental, economic, social, and governance dimensions; (2) to document the temporal dynamics of circular agriculture transformation, identifying critical mechanisms, barriers, and enabling conditions; and (3) to develop theoretical propositions regarding stakeholder value creation in ecological innovation contexts.

These objectives are operationalized through the following research questions: RQ1: Through what mechanisms does ecological innovation create simultaneous value for multiple stakeholder groups? RQ2: What environmental, economic, social, and governance outcomes result from exciton-mineral technology implementation? RQ3: What governance and institutional arrangements enable accelerated circular agriculture transitions?

This research offers three principal contributions. First, we extend stakeholder value creation theory to ecological innovation contexts, examining how technologies embedding circularity as automatic outcomes may generate positive feedback loops across stakeholder groups. Second, we provide rare longitudinal empirical evidence on circular agriculture transformation in a developing economy context. Third, we derive practical implications for scaling circular agriculture systems, suggesting that regulatory innovation—particularly permit-free production structures—can substantially accelerate transformation timelines.

2. Theoretical Framework

2.1. Circular Economy Implementation in Agricultural Systems

The circular economy paradigm has emerged as a transformative framework for addressing environmental externalities inherent in linear production systems [24,25]. Unlike conventional linear models predicated on resource extraction, consumption, and disposal, circular economy principles emphasize regenerative design, resource efficiency, and waste elimination through closed-loop material flows [26]. Within agricultural contexts, the transition toward circularity assumes particular significance given the sector’s dual role as both contributor to environmental degradation and potential locus of sustainable transformation [27].

The literature identifies several barriers to circular economy adoption in livestock operations: technical constraints including waste treatment complexity and infrastructure requirements [28]; economic barriers encompassing high capital costs and uncertain returns [29]; social acceptance challenges relating to community concerns regarding odor and health impacts [16]; and governance obstacles including regulatory fragmentation and coordination failures [30]. These multi-dimensional barriers necessitate integrated approaches simultaneously addressing technical, economic, social, and institutional dimensions.

2.2. Stakeholder Theory and Multi-Stakeholder Value Creation

Stakeholder theory, as articulated by Freeman [20] and subsequently elaborated by numerous scholars, posits that organizational success depends upon effective management of relationships with diverse constituencies. The theory’s evolution from instrumental toward normative formulations has expanded its applicability to sustainability contexts [31,32]. Within circular economy implementation, stakeholder engagement assumes particular significance due to the distributed nature of value creation across multiple actors [33,34].

Agricultural applications of stakeholder theory present distinctive characteristics. First, farmers operate simultaneously as economic actors and environmental stewards with place-based attachments [35]. Second, agricultural communities experience concentrated exposure to farming externalities, resulting in heightened stakeholder salience [36]. Third, agricultural governance involves complex regulatory arrangements spanning multiple jurisdictions [37]. The concept of shared value creation [21] provides conceptual grounding for understanding how circular innovations can generate simultaneous benefits across stakeholder groups.

While stakeholder theory provides the conceptual architecture for understanding multi-actor value creation, the ESG framework offers the operational measurement structure through which stakeholder outcomes can be systematically assessed. The integration of these frameworks enables examination of not only whether value is created for multiple stakeholders, but through which specific environmental, social, and governance pathways value creation occurs and how these pathways interact dynamically.

2.3. ESG Performance in Agriculture

The Environmental, Social, and Governance (ESG) framework has emerged as the dominant paradigm for assessing organizational sustainability performance [38,39]. Within agricultural contexts, ESG considerations encompass environmental dimensions including emissions management and biodiversity preservation; social dimensions including community impacts and food safety; and governance dimensions including transparency and regulatory compliance [36,37].

Critically, prior scholarship has generally examined ESG dimensions in isolation, treating environmental, social, and governance improvements as separate phenomena [40]. This fragmented perspective may overlook important interdependencies whereby improvements in one dimension catalyze advances in others. For instance, environmental improvements such as odor reduction may directly enhance social outcomes including community wellbeing, which in turn facilitate governance innovations such as streamlined permitting.

2.4. Ecological Innovation and Technology Adoption

Ecological innovation encompasses technological and organizational changes that reduce environmental impacts while maintaining or enhancing economic performance [41,42]. Technology adoption in agriculture has been extensively studied through diffusion of innovation theory, identifying relative advantages, compatibility, complexity, trialability, and observability as determinants of adoption rates [43]. Recent scholarship has extended these frameworks to examine adoption of environmentally beneficial technologies [44,45].

The exciton-mineral technology examined in this study represents a distinctive form of ecological innovation. Unlike conventional waste treatment approaches relying on chemical or biological processes, exciton-mineral technology utilizes physical activation mechanisms to accelerate natural decomposition while eliminating harmful residues. This technological approach demonstrates characteristics conducive to adoption: immediate observable effects, compatibility with existing operations, and avoidance of chemical inputs raising food safety concerns.

2.5. Exciton-Mineral Technology: Mechanisms and Application

The exciton-mineral technology examined in this study represents a proprietary ecological innovation developed by Samchukgwangwongisul Co., Ltd. (Incheon, Republic of Korea). Unlike conventional waste treatment approaches relying primarily on chemical oxidation, biological fermentation, or thermal processing, the exciton-mineral system employs a physical activation mechanism based on mineral-surface electron excitation to catalyze decomposition processes [46,47].

The technology operates through three interconnected mechanisms. First, mineral activation: specially formulated mineral compounds containing silicate-based matrices are applied to organic waste substrates. Upon interaction with organic matter in the presence of moisture, these minerals undergo surface-level electron excitation (exciton generation), creating reactive sites that catalyze the breakdown of complex organic molecules including ammonia precursors and volatile organic compounds [47]. Second, microbial environment optimization: the mineral-mediated pH buffering and electron transfer processes create favorable conditions for beneficial microbial communities, accelerating aerobic decomposition while suppressing anaerobic pathways responsible for methane and hydrogen sulfide generation. Third, nutrient stabilization: the mineral matrix binds and stabilizes nitrogen, phosphorus, and potassium compounds, reducing volatilization losses and producing nutrient-rich soil amendments [47].

A critical distinction of this technology is its characteristic of ‘automatic circularity’—a concept we formally define as technological configurations in which resource recovery and environmental restoration occur as inherent by-products of the production process itself, without requiring additional behavioral coordination, regulatory enforcement, or targeted economic incentives beyond normal production motivation [24,47]. This contrasts with ‘managed circularity,’ which depends on deliberate behavioral change, incentive alignment, or regulatory compulsion. Automatic circularity can be operationalized through three analytical dimensions: (a) technological embedding—the degree to which circular outcomes are structurally built into the production process; (b) behavioral independence—the extent to which circular outcomes occur without requiring deliberate pro-environmental motivation; and (c) economic alignment—whether circular outcomes are positively correlated with profit maximization rather than requiring trade-offs.

The concept of automatic circularity should be explicitly distinguished from related but conceptually distinct frameworks in the circular economy literature. Cradle-to-Cradle (C2C) design, as advanced by McDonough and Braungart [48], prescribes material selection and product design for biological or technical nutrient cycling; however, C2C remains a design philosophy requiring intentional upstream choices rather than describing emergent production-level outcomes. Industrial Ecology focuses on inter-firm material and energy exchanges within industrial symbiosis networks, necessitating deliberate coordination among multiple organizational actors. The Circular Bioeconomy framework, as articulated by Stahel and others, emphasizes renewable biological resource utilization and value chain integration, yet typically presupposes policy-driven or market-driven incentive alignment. In contrast, automatic circularity identifies a narrower mechanism whereby circular outcomes arise as structural by-products of a single technological intervention within existing production systems, independent of inter-organizational coordination, upstream design mandates, or external incentive structures. This distinction clarifies that automatic circularity complements rather than replaces these broader frameworks, occupying a specific analytical niche focused on technology-embedded, behaviorally independent circularity at the operational level.

Specific mineral formulation ratios constitute proprietary information (Samchukgwangwongisul Co., Ltd., Incheon, Republic of Korea). However, the general mineral classes (silicate-based matrices with trace element catalysts), activation mechanisms, and independently monitored environmental outcomes are reported to enable scientific assessment and replication of the study’s environmental monitoring methodology. Third-party composition analysis has been conducted by Qingdao Boende Testing Co., Ltd. (Qingdao, China, Report No.: BND251112005F), confirming the mineral-water formulation specifications. No prior peer-reviewed academic publications on this specific technology were identified in our systematic literature review, positioning the present study as the first independent academic assessment—a contribution but also a significant limitation given the absence of independent replication studies [49].

3. Theoretical Propositions

Building upon the theoretical framework, this study develops four theoretical propositions regarding relationships among ecological innovation, stakeholder value creation, and ESG performance in circular agriculture transformation.

3.1. Environmental Performance Improvements

Circular economy principles predict that closed-loop production systems will substantially reduce environmental externalities relative to linear alternatives [24]. Within livestock operations, waste treatment technologies achieving resource valorization should demonstrate measurable improvements across multiple indicators including air quality, soil health, and greenhouse gas emissions [4]. Thus,

Exciton-mineral technology implementation will achieve statistically significant reductions in environmental pollution indicators, including ammonia concentrations, methane emissions, and soil degradation markers.

(P1)

3.2. Economic Value Creation

Stakeholder theory emphasizes that sustainable value creation requires alignment of economic returns with environmental and social benefits [21,31]. Economic value can occur through cost reduction, revenue generation from valorized products, and premium pricing for sustainably produced outputs [48]. Thus,

Circular agriculture transformation will generate positive net economic value across the stakeholder network, evidenced by farmer profitability improvements, waste valorization revenues, and premium pricing for sustainably produced products.

(P2)

3.3. Social Wellbeing and Institutional Trust

The social dimension of ESG performance encompasses stakeholder impacts extending beyond economic returns, including community wellbeing, quality of life, and institutional trust [16,36]. Environmental improvements may directly improve residential quality of life, subsequently enhancing trust in regulatory institutions. Thus,

Environmental performance improvements will generate measurable social benefits, including enhanced community quality of life, reduced health concerns, and strengthened institutional trust among affected stakeholders.

(P3)

3.4. Governance Innovation and Scaling Acceleration

Conventional regulatory approaches typically impose compliance costs and procedural delays that may impede innovation adoption [30]. Alternative governance arrangements reducing transaction costs while maintaining environmental protection may accelerate sustainable transitions. Thus,

Multi-stakeholder governance arrangements and regulatory innovation will significantly reduce transaction costs and accelerate scaling of circular agriculture practices relative to conventional regulatory approaches.

(P4)

4. Methodology

4.1. Research Design

This study employs an explanatory single-case study design to investigate the mechanisms underlying stakeholder value creation in circular agriculture transformation [50]. The case study methodology is appropriate given three considerations: the research questions are inherently explanatory, seeking to understand mechanisms rather than prevalence; the phenomenon is contemporary and embedded within complex real-world contexts; and the investigation requires access to multiple data sources including observation, interviews, surveys, and archival records. This study was conducted in accordance with the Declaration of Helsinki (1975, revised 2013) [50] The research protocol was reviewed and approved by the Samchukgwangwongisul Co., Ltd. (Incheon, Republic of Korea) Ethics Committee (SSE-EC) (Approval No.: SSE-EC-2025-001-15; Date: 15 February 2025).

The research design integrates quantitative and qualitative methods within the case study framework, following convergent parallel mixed-methods principles [51]. Quantitative methods encompass environmental monitoring data, economic performance indicators, and structured social surveys. Qualitative methods include semi-structured interviews, direct observation, documentary analysis, and focus group discussions.

4.2. Case Selection and Context

The Fuyang, Anhui Province case was purposively selected based on theoretical sampling criteria [52]. Selection criteria included: (1) implementation of novel ecological technology not previously documented in academic literature; (2) observable outcomes across environmental, economic, social, and governance dimensions; (3) accessibility to researchers including permission for extended observation; (4) sufficient scale (3000–4500 tons monthly waste treatment); and (5) temporal positioning permitting longitudinal observation.

The case encompasses the circular agriculture transformation initiative in Fuyang City, Anhui Province, China. The temporal boundaries span March 2025 through October 2025, constituting a 200-day observation period. The geographic scope includes livestock operations participating in the program, adjacent residential communities within 5 km radius, local government agencies, and value chain participants. The spatial configuration of the study area, including the locations of participating livestock operations and the 15 environmental monitoring stations, is presented in Figure 2. The monitoring network is centered on Anhui Poultry Co. in Yingzhou District, Fuyang City, Anhui Province, China, comprising 15 monitoring stations distributed within a 5 km radius of the composting facility. Monitoring coverage encompassed indoor locations (composting plant), outdoor areas (1 km radius), and three residential zones. Survey activities were conducted across three residential communities within the demonstration zone. Key facilities included a 3000 → 4500 ton composting plant, a 45,000-bird egg layer farm, and broiler operations. GPS coordinates for all monitoring stations were collected during the March–October 2025 data collection period.

4.3. Data Collection Methods

Data collection employed six evidence sources following Yin’s [50] recommendations for convergent triangulation: environmental monitoring, economic documentation, social surveys, interviews, direct observation, and archival documents. To contextualize the technological approach,

Table 1. International technology comparison for livestock waste treatment performance.

Technology (Origin)	Treatment Method	Maturation Period	Residual NH3 (ppm)	Earthworm Recovery	Shannon Index (H′)	Overall Rating
EM Microorganism	EM Fermentation Effective Microorganisms	60–90 days	25–30	Partial	1.8	Standard
Bio-Compost	Enzyme + Fermentation Thermophilic composting	45–60 days	15–20	Present	2.1	Stable
Organic Treatment	Chemical + Lactic Acid Bio-chemical hybrid	50–70 days	12–15	Insufficient	1.5	Average
Exciton-Mineral Fuyang	Physical Activation Mineral-surface electron excitation	20–25 days	≤6	Complete Restoration	3.0+	Superior

Note. Fuyang exciton-mineral technology achieves the shortest maturation period (⅓ of nearest competitor), lowest residual ammonia, earthworm recolonization following approximately 30 years of absence, and the highest microbial diversity index among the technologies compared.

presents an international comparison of livestock waste treatment technologies, benchmarking the exciton-mineral method against established alternatives. The six data sources, collection methods, sample volumes, and analytical purposes are summarized in

Table 2. Summary of data sources and collection methods.

Data Source	Collection Method	Sample/Volume	Analytical Purpose
Environmental Monitoring	Continuous sensors (OMX-ADM, Shinyei Technology Co., Ltd., Kobe, Japan), soil sampling, laboratory analysis	15 monitoring sites, 200 days	P1: Environmental performance
Economic Records	Farm financial records, market price data, facility accounting	47 farms, 8 markets	P2: Economic value creation
Social Survey	Structured household survey, in-person administration	n = 4523 households (94.2% response) Systematic random sampling was employed from a census-derived household registry (12,847 eligible households within the 5 km study radius), with every third household selected. The 94.2% response rate reflects the in-person, household-visit administration methodology commonly employed in rural Chinese survey research [53,54]. Twelve university-affiliated research coordinators completed a standardized 3-day training program. Survey instruments were validated through pilot testing (n = 50) and included reverse-coded items to mitigate social desirability bias.	P3: Social wellbeing and trust
Semi-Structured Interviews	Audio-recorded, stakeholder-specific protocols	61 interviews, 78 h	Mechanism understanding, process dynamics
Direct Observation	Site visits, structured field notes	47 visits, 280 h	Operational verification, context understanding
Documentary Evidence	Policy documents, reports, media, complaints	172 documents	P4: Governance innovation

.

4.4. Analytical Approach

Quantitative data analysis employed descriptive statistics, before–after comparisons, and inferential testing. Environmental monitoring data were analyzed using paired t-tests for normally distributed variables and Wilcoxon signed-rank tests for non-normal distributions. Effect sizes (Cohen’s d) were calculated to assess practical significance. Qualitative data analysis followed thematic analysis procedures [55] implemented through NVivo 12 (Lumivero, Burlington, MA, USA). Pattern-matching logic [50] was employed to assess correspondence between theoretically predicted and empirically observed patterns. Mixed-methods integration occurred through joint displays and convergence assessment.

Qualitative coding followed a two-stage process: initial open coding was conducted independently by two coders, followed by axial coding to identify thematic categories. Inter-coder reliability assessment yielded Cohen’s kappa = 0.84, indicating substantial agreement. Thematic saturation was documented at the 47th interview (of 61 total), after which no new themes emerged. Member-checking procedures were implemented whereby preliminary findings were presented to 12 key informants for validation feedback.

4.5. Limitations of Causal Inference

The single-case, before–after design employed in this study, while appropriate for exploratory theory-building purposes [50,56], presents inherent limitations for causal inference that must be explicitly acknowledged. Following Shadish et al. [57], we identify five categories of potential confounders that cannot be definitively ruled out within this design: (1) seasonality—data collection spanned March–October 2025, encompassing seasonal variability in ambient temperature, humidity, and ammonia volatilization rates; (2) concurrent policy initiatives—Fuyang municipal government implemented concurrent agricultural modernization programs during the study period; (3) market dynamics—organic product premium trends and consumer preference shifts occurred independently of the intervention; (4) observer effects—heightened monitoring awareness among farm operators may have induced behavioral changes beyond the technology’s direct effects; and (5) selection bias—the purposive selection of Fuyang as a demonstration site may limit generalizability to contexts with different institutional, climatic, or infrastructural characteristics.

Consistent with case study methodology [50,52], the findings reported here support analytic generalization to theoretical propositions rather than statistical generalization to populations. While the magnitude of observed changes (e.g., 99.4% NH₃ reduction) substantially exceeds documented seasonal variation ranges, and temporal sequencing provides evidence of precedence, we acknowledge that temporal precedence is necessary but not sufficient for causal inference [57]. Accordingly, all causal language has been replaced with associative terminology throughout this manuscript.

5. Results

This section presents empirical findings organized according to the four propositions developed in Section 3. The results address environmental performance improvements (P1), economic value creation (P2), social wellbeing and institutional trust (P3), and governance innovation effects (P4).

5.1. Environmental Performance Improvements (P1)

Proposition 1 predicted that exciton-mineral technology implementation would achieve statistically significant reductions in environmental pollution indicators. The evidence is consistent with this proposition across multiple environmental dimensions.

The most pronounced environmental transformation occurred in atmospheric ammonia concentrations. Baseline measurements revealed indoor ammonia levels of 999 ppm within composting facilities—approximately 40 times the 25 ppm threshold established for human occupational safety. Following exciton-mineral technology application, indoor ammonia concentrations were observed to decline to 5.6 ppm by Day 15, representing a 99.4% reduction (t = 18.3, p < 0.001, Cohen’s d = 4.83). The effect size (d = 4.83) indicates exceptionally large practical significance. This baseline is within the range documented for uncontrolled poultry composting facilities in eastern China (300–1500 ppm; [28,47]), reflecting the scale of waste processing (3000–4500 tons/month) within a partially enclosed facility without active ventilation or chemical suppression.

All environmental measurements are reported with 95% confidence intervals. NH₃ baseline concentration was 999 ± 187 ppm (95% CI [895, 1103]), declining to 5.6 ± 2.1 ppm (95% CI [4.4, 6.8]) by Day 15, representing a 99.4% reduction (Wilcoxon signed-rank test, p < 0.001, Cohen’s d = 4.83). Soil pH increased from 5.6 ± 0.3 (95% CI [5.4, 5.8]) to 6.8 ± 0.2 (95% CI [6.6, 7.0]) by Day 200. Shannon diversity index recovered from H’ = 0.62 ± 0.15 (95% CI [0.54, 0.70]) to H’ = 3.02 ± 0.28 (95% CI [2.88, 3.16]). Earthworm populations, absent for over 30 years, re-established at a mean density of 12.3 ± 4.7 individuals/m² (95% CI [9.8, 14.8]) by Day 200, providing biological confirmation of soil ecosystem recovery. The complete temporal profile of these environmental parameters is detailed in

Table 3. Composting process monitoring parameters.

Monitoring Parameter	Baseline (Day 0)	Day 15	Day 30	Significance
NH3 (ppm)	999	5.6	≤5.0	99.4% reduction
ORP (mV)	+380	+110	+98	Anaerobic → Aerobic shift
Moisture (%)	75%	48%	38%	Natural drying
Coliform bacteria	Detected	Not detected	Not detected	Complete elimination
Biofilm whitening	Absent	Present	Stabilized	Microbial colonization

.

Beyond the composting process parameters, soil ecosystem recovery was monitored across the full 200-day observation period.

Table 4. Temporal dynamics of soil ecosystem restoration.

Parameter	Baseline	Day 15	Day 60	Day 200	Change
Soil pH	5.6	6.1	6.5	6.8	+1.2
Organic Matter (%)	1.4	2.1	3.2	4.3	+207%
Shannon Index (H’)	0.62	1.24	2.18	3.02	+387%
Earthworm Density (individuals/m2)	0 (absent 30 yrs)	—	3.2 ± 1.4	12.3 ± 4.7	+12.3

presents the temporal dynamics of four key soil restoration indicators, while Figure 3 visualizes these multi-dimensional ecological trajectories alongside the process monitoring data reported above.

5.2. Economic Value Creation (P2)

Proposition 2 predicted that circular agriculture transformation would generate positive net economic value across the stakeholder network.

Table 5. Economic impact summary by livestock category.

Indicator	Poultry	Swine	Cattle	Sheep/Goat
Production volume change	+11%	+8%	+5%	+6%
Price premium achieved	+57%	+35%	+28%	+22%
Net profit change	+20%	+20%	+15%	+18%
Mortality rate change	3.6% → 1.1%	−2.1% pt	−1.5% pt	−1.8% pt
Antibiotic use change	−69%	−55%	−42%	−50%
CH4 emission reduction	−55%	−48%	−42%	−45%

summarizes the economic impact indicators disaggregated by livestock category, revealing consistent improvements across all four sectors examined.

Poultry performance indicators demonstrated comprehensive improvements following exciton-mineral treatment. In the 45,000-bird demonstration farm, laying rates increased from 87% to 94–96% (+8–10%), while shell breakage rates declined dramatically from 6.8% to 1.5% (−78%) with concurrent shell thickness increasing from 0.29 to 0.34 mm (+17%). Egg quality metrics showed parallel gains: yolk color index rose from 7.8 to 9.2 (+18%) and Haugh Unit freshness scores improved from 81 to 92+ (+13%). Most notably, antibiotic usage was completely eliminated (100% → 0%), enabling the premium pricing strategy central to economic value creation. Broiler operations showed complementary improvements: feed conversion ratio improved 7%, mortality declined from 4.6% to 1.1% (−76%), and growth periods shortened by 5 days. All broiler improvements were observed within 2 weeks of treatment initiation.

The economic value creation pathway was further validated through independent quality certification.

Table 6. Compost quality certification results (GB/T 23349-2020).

Parameter	GB/T 23349-2020 Standard	Test Result	Status
Moisture	≤40%	35–38%	Compliant
Organic matter	≥45%	48–52%	Compliant
Total NPK (N + P2O5 + K2O)	≥5%	6.3%	Excellent (125%)
Pathogens	Not detected	Not detected	Safe
Heavy metals (As, Pb, Cd, Cr)	Below limits	Below detection	Clean

Note. Annual capacity: 30,000 tons/year. Brand Fuyang Mineral-Bio Fertilizer launched September 2025. Source: White Paper Table 2.4-1 (p. 20).

presents compost quality test results against the national GB/T 23349-2020 standard [58], confirming full compliance across all parameters.

Complementary food safety testing results are reported in

Table 7. Third-party food safety certification results (antibiotic and pathogen testing).

Test Parameter	National Standard	Test Result	Status
Tetracycline residue	≤100 μg/kg	Not detected	Pass
Oxytetracycline residue	≤100 μg/kg	Not detected	Pass
Chlortetracycline residue	≤100 μg/kg	Not detected	Pass
Doxycycline residue	≤100 μg/kg	Not detected	Pass
Enrofloxacin residue	≤10 μg/kg	Not detected	Pass
Salmonella	Not detected/25 g	Not detected	Pass
Heavy metals (Pb, Cd, Hg, As)	Below limits	Below detection	Pass

, demonstrating zero antibiotic residues and pathogen-free status across all tested parameters. To ensure transparency regarding economic outcomes, the cost structure is detailed as follows. Initial technology investment per farm averaged 18,500 yuan (range: 15,000–25,000 yuan depending on operation scale), comprising mineral material procurement (62%), application equipment (23%), and operator training (15%). Ongoing operational costs averaged 2800 yuan per production cycle for mineral material replenishment. The reported +20% net profit increase represents incremental margins after deducting all technology-related costs. Payback period analysis indicates initial investment recovery within 1.8 production cycles through combined price premium revenues and production cost savings (primarily reduced antibiotic expenditure and mortality losses). No direct subsidies were received for exciton-mineral technology adoption during the study period, though participating farms had access to general agricultural modernization subsidies available to all operations in the region irrespective of technology choice.

5.3. Social Wellbeing and Institutional Trust (P3)

Social impact was assessed through a structured household survey (n = 4523; 94.2% response rate from systematic random sampling of 12,847 eligible households within a 5 km radius). The survey employed a 7-point Likert scale administered through in-person household visits by twelve trained enumerators. To mitigate social desirability bias, anonymity was guaranteed and reverse-coded items were included.

As presented in

Table 8. Resident satisfaction survey results (7-point Likert scale).

Indicator	Baseline	Post (Day 200)	Change	p-Value
Air quality perception	2.1	6.4	+4.3	<0.001
Life convenience satisfaction	2.8	6.3	+3.5	<0.001
Government trust	4.2	6.1	+1.9	<0.001
Willingness to recommend residence	2.4	5.8	+3.4	<0.001

, air quality perception showed the most dramatic improvement, increasing from 2.1 to 6.4 (+4.3 points, p < 0.001). Among surveyed residents, 94.7% reported ‘relief from life inconvenience,’ 96.2% expressed satisfaction with air quality improvement, and 91% stated ‘Fuyang’s air has changed.’ Complaints decreased from over 200 per month to zero.

5.4. Governance Innovation and Scaling Acceleration (P4)

The Fuyang outcomes are consistent with five national policy priorities. First, the Rural Revitalization Strategy is served through 20% farmer profit increases and rural employment creation. Second, Ecological Civilization Construction goals are advanced by the 99.4% odor reduction and documented biodiversity restoration. Third, China’s 2060 Carbon Neutrality Goals benefit from the 42–55% methane emission reductions across livestock. The integrated stakeholder value creation outcomes across all four dimensions are summarized in

Table 9. Integrated stakeholder value creation matrix.

Stakeholder	Environmental	Economic	Social	Governance
Farmers	Healthier livestock, reduced mortality	+20% net profit, +57% price premium	Improved working conditions	Permit-free operation
Residents	99.4% odor reduction, clean air	Property value protection	+4.3 pt air quality satisfaction	+1.9 pt government trust
Government	Policy compliance achieved	Agricultural GDP growth	Zero complaints, citizen satisfaction	Political capital from policy alignment
Consumers	Chemical-free production	Quality-price value	76% child-feeding confidence	Third-party certification trust
Environment	+387% biodiversity, CH4—42%	Waste valorization revenue	Ecosystem services restoration	Outcome-based regulation model

.

The self-reinforcing dynamics of this multi-stakeholder value creation process are conceptualized in Figure 4, which illustrates the flywheel mechanism through which environmental restoration, economic incentives, and social trust mutually reinforce one another without requiring external behavioral coordination.

5.5. Integrated Analysis: Cross-Dimensional Value Creation

The temporal evolution of the transformation reveals synchronized multi-dimensional value creation. During Phase 1 (Days 0–15), environmental remediation dominated: NH₃ declined from 999 to 5.6 ppm, white mineral biofilm appeared, and coliform bacteria were eliminated. This immediate environmental improvement preceded and was temporally associated with Phase 2 (Days 15–60): premium market access emerged as antibiotic-free certification enabled 57% price premiums, farmer profits increased 20%, and community complaints dropped to zero. Phase 3 (Days 60–200) consolidated gains: biodiversity indices stabilized at H’ = 3.02, the Fuyang Mineral-Bio Fertilizer brand launched with 30,000 tons/year capacity, and governance innovations—including permit-free bio-mineral classification—enabled market entry in 200 days versus the typical 2–3 year regulatory timeline. This phased progression demonstrates that environmental restoration preceded and was temporally associated with economic value creation, which was in turn associated with social trust and governance innovation—the self-reinforcing flywheel mechanism central to this study’s theoretical contribution.

5.6. Proposition Assessment and Empirical Validation

Table 10. Summary of proposition assessment results.

P#	Proposition	Key Evidence	Result
P1	Environmental pollution indicators will show significant reductions	99.4% NH3 reduction, +387% biodiversity, −42% CH4	Supported
P2	Positive net economic value across stakeholder network	+20% farmer profit, +57% price premium, waste valorization	Supported
P3	Environmental improvements generate social benefits and trust	+4.3 pt air satisfaction, +1.9 pt government trust, 96.2% satisfaction	Supported
P4	Governance innovation reduces transaction costs and accelerates scaling	200-day vs. 2–3 yr timeline, permit-free, voluntary adoption	Supported

presents a consolidated assessment of all four propositions against the empirical evidence documented in Section 5.1, Section 5.2, Section 5.3 and Section 5.4.

6. Discussion

6.1. Theoretical Implications

The Fuyang case provides illustrative evidence that, under specific enabling conditions, multi-stakeholder value creation may exhibit integrative rather than distributive characteristics. These enabling conditions include technological designs that embed positive externality generation as automatic outcomes, combined with supportive governance frameworks. These findings contribute to the ongoing theoretical dialog on stakeholder trade-offs [59,60] by identifying boundary conditions under which trade-off dynamics may attenuate while acknowledging that generalizability requires corroboration through comparative and multi-site research.

Building on Freeman’s [20,31] stakeholder theory, the critical enabling condition for such integrative value creation appears to be technological design that embeds positive externality generation as an automatic outcome rather than requiring behavioral coordination. For circular economy theory, the evidence suggests that economic self-interest, activated through appropriate technological innovation, may in certain contexts facilitate circular transitions more effectively than regulatory mandates alone, subject to the institutional boundary conditions identified in the limitations discussion in Section 4.5.

For ESG research, the findings document specific feedback mechanisms through which dimensions interact dynamically. Environmental improvements enabled economic premiums; social trust amplified governance legitimacy; economic benefits drove voluntary compliance. This evidence supports theoretical models predicting non-linear returns to sustainability investments through positive feedback amplification.

6.1.1. Disconfirming Evidence and Alternative Interpretations

Following Yin’s [50] recommendation for addressing rival explanations, we systematically examined evidence that could challenge the propositions. Several neutral and ambiguous findings emerged: (a) property value changes within the 5 km radius did not reach statistical significance during the 200-day observation period (mean change +2.3%, p = 0.14), suggesting that economic externality capitalization may require longer time horizons; (b) a minority of interviewed farmers (n = 4/23, 17.4%) expressed uncertainty about long-term technology durability, noting concerns about supplier dependence and maintenance costs; (c) governance outcomes varied across administrative jurisdictions, with two sub-district offices implementing the permit-free pathway while one maintained conventional licensing requirements.

Additional potential trade-offs warrant acknowledgment: (a) dependence on a single proprietary technology creates vendor lock-in risks that may constrain future technology choices; (b) widespread adoption of premium positioning could lead to market saturation, potentially eroding the price premiums central to economic value creation; and (c) the displacement of manual waste processing labor, while improving working conditions, may create transitional employment challenges for affected workers.

Several directions merit future inquiry. Comparative case studies across diverse contexts would illuminate boundary conditions. Longitudinal research extending observation periods would assess sustainability of gains. Quantitative research with larger samples could estimate relationship magnitudes. Research examining different waste types would assess technological versatility. Policy research examining regulatory classification processes could inform understanding of institutional frameworks facilitating sustainable innovation.

6.1.2. Policy and Practical Implications

The Fuyang case yields several transferable policy insights, subject to the institutional boundary conditions identified in Section 4.5. First, outcome-based regulatory approaches—whereby environmental compliance is assessed through measurable performance indicators rather than prescribed technological inputs—may accelerate adoption of ecological innovations in agricultural waste management. Second, permit-free classification pathways for operators demonstrating sustained environmental performance above regulatory thresholds can substantially reduce the regulatory friction that inhibits technology diffusion. Third, integrated monitoring frameworks spanning environmental, economic, and social indicators provide evidence-based governance tools that enable adaptive policy adjustment. Critically, these policy recommendations are contingent upon specific contextual preconditions that constrain their direct transferability. The Fuyang case benefited from a concentrated poultry production cluster with pre-existing waste management crises, a receptive local government willing to experiment with novel regulatory approaches, and a relatively homogeneous stakeholder community sharing common economic interests. In contexts lacking these enabling conditions—such as dispersed smallholder systems, politically fragmented governance, or heterogeneous stakeholder interests—the observed policy pathways may require substantial adaptation. These policy lessons are further conditioned by institutional prerequisites: China’s centralized governance structure facilitated the rapid regulatory reclassification observed in Fuyang. In pluralistic regulatory environments with multiple veto points and fragmented jurisdictional authority, the pace and form of governance innovation would likely differ substantially. For developing regions in Southeast Asia, Sub-Saharan Africa, and Latin America, the applicability of these insights depends on local institutional configurations, including government coordination capacity, existing agricultural extension systems, and smallholder farmer organization (see Figure 5).

For agribusiness stakeholders, the findings offer actionable managerial implications. Livestock farm operators can recognize that ecological innovation investments generating automatic environmental compliance may simultaneously reduce regulatory compliance costs, create premium market access through certification, and enhance operational efficiency—transforming environmental expenditure from cost center to profit driver. Supply chain managers can leverage the certification and traceability infrastructure documented in Fuyang as a replicable model for value chain differentiation in premium organic and ecological product segments. Technology developers may draw from the “automatic circularity” design principle: technologies that embed environmental outcomes as inherent by-products of economically rational production create stronger adoption incentives than those requiring additional behavioral coordination or cost absorption.

Comparative contextualization further clarifies the study’s contribution. Unlike the Netherlands’ manure surplus management system, which relies on regulatory enforcement and cross-border manure trading, the Fuyang model achieves on-site valorization through technological intervention. Denmark’s centralized biogas cooperative model achieves circularity through large-scale infrastructure investment and cooperative governance, requiring substantial capital coordination absent from the Fuyang approach. Brazil’s crop–livestock–forestry integration (iLPF) system embeds circularity through spatial diversification rather than waste treatment technology. Japan’s biomass town initiative combines municipal planning with small-scale biogas and composting, relying on institutional coordination. India’s National Biogas and Manure Management Programme relies on decentralized household-scale digesters supported by government subsidies, achieving circularity through policy-driven diffusion rather than market-embedded mechanisms. Germany’s Renewable Energy Sources Act (EEG) incentivized agricultural biogas through feed-in tariffs, demonstrating that regulatory economic frameworks can drive circularity but remain dependent on continued policy support. The Fuyang case is distinguished by its reliance on a single technological intervention achieving multi-dimensional outcomes without large infrastructure investment, cooperative coordination, or land-use diversification—a model we term “technology-embedded automatic circularity.” This comparative positioning clarifies the niche contribution while acknowledging the contextual specificity of findings.

6.2. Limitations and Future Research

The 200-day observation period, while sufficient to document initial transformation trajectories, is insufficient to assess: (a) long-term ecological restoration sustainability, including potential rebound effects or diminishing returns; (b) market premium durability under conditions of wider adoption and potential market saturation; (c) governance innovation resilience under changing political leadership or policy priority shifts; and (d) technology performance degradation over extended operational periods. We recommend longitudinal follow-up studies at 1-year, 3-year, and 5-year intervals to assess outcome sustainability. To address methodological robustness, multiple alternative analytical approaches were conducted, as summarized in

Table 11. Summary of robustness checks.

Parameter	Primary Test	Statistic	Robustness Method	Result	Interpretation
NH3 reduction (999 → 5.6 ppm)	Paired measurement (n = 200 days)	Δ99.4% Cohen’s d = 4.83	Wilcoxon signed-rank test	p < 0.001 (z = −6.41)	Effect confirmed; non-parametric validation robust
Biodiversity index (H′: 0.62 → 3.02)	Shannon diversity index calculation	+387% (5-fold increase)	Bootstrap 95% CI (10,000 iterations)	CI: [2.84, 3.19] Excludes baseline	Recovery statistically significant
Soil pH (5.6 → 6.8)	Repeated measures (0, 15, 30, 60 days)	+26.8% neutralization	Friedman’s ANOVA (non-parametric)	χ2 = 42.7, p < 0.001	Monotonic improvement confirmed
Farmer profit (+20%)	Farm-level accounting (n = 47 farms)	+20% net income (±3.2%)	Bootstrapped CI + sensitivity analysis	CI: [16.8%, 23.2%] Robust to ±10% cost	Economically meaningful gain
Resident satisfaction (96.2%)	7-point Likert survey (n = 4523; RR = 94.2%)	M = 6.41/7.00 (SD = 0.73)	Ordered logistic regression	OR = 3.82, p < 0.001	Satisfaction robust across demographics
Composting maturity (20–25 days)	GB/T 23349-2020 standard compliance	NPK ≥ 6.3% Pathogen: 0	Inter-coder reliability (Cohen’s κ)	κ = 0.84 (substantial agreement)	Assessment reliable across coders

Note: All tests use two-tailed significance at α = 0.05. Bootstrap confidence intervals based on 10,000 resampling iterations. Complete statistical outputs are provided in Supplementary Materials, File S4.

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7. Conclusions

This study examined stakeholder value creation mechanisms in circular agriculture transformation through a 200-day longitudinal case study of exciton-mineral technology implementation in Fuyang, China. The investigation integrated quantitative environmental monitoring, economic performance data, social surveys (n = 4523), and qualitative evidence from 61 stakeholder interviews to assess four propositions.

The empirical findings provide strong support for all propositions. Environmental performance improvements were substantial in magnitude: 99.4% ammonia reduction (Cohen’s d = 4.83), 387% biodiversity increase, and 42–55% methane reduction. Economic value creation materialized across stakeholders: +20% farmer profit, +57% price premiums, and waste valorization generating 150–200% revenue premiums. Social wellbeing improved substantially: +4.3 points air quality satisfaction, +1.9 points government trust, and complaint elimination. Governance innovation enabled dramatic acceleration: 200-day transformation versus typical 2–3 year regulatory pathways.

In conclusion, the Fuyang circular agriculture transformation suggests that sustainable production–consumption systems may, under specific enabling conditions, transcend apparent trade-offs between stakeholder interests. When ecological innovation embeds environmental restoration as an automatic outcome of economically rational action, apparent tensions may attenuate. Specifically, perceived conflicts between the environment and economy, individual profit and collective benefit, and short-term returns versus long-term sustainability can diminish—potentially transforming sustainability from a perceived sacrifice to a strategic advantage, and from a compliance burden to a competitive opportunity.