INTEGRAL ASSESSMENT OF THE ECONOMIC EFFICIENCY OF FLORICULTURE AGRI-BUSINESS BASED ON THE FESI INDEX: METHODOLOGY, RESULTS, AND LIMITATIONS
Affiliation
Independent in the specialty of "Economics of Entrepreneurship and Small Business", NamSTU
Abstract
The article analyzes the FESI (Floriculture Economic Sustainability Index) methodology for assessing the economic efficiency of floriculture agri-business through a single integral indicator. The index was calculated as the equally weighted arithmetic mean of the revenue index (TI), net profit index (PFI), profitability index (RI), and income per hectare index (DI) relative to the 2016 base year. According to data from 2016–2025, FESI increased from 100.0 to 1131.7 points. In 2025, TI stood at 1704.2, PFI at 1919.4, RI at 145.5, and DI at 757.9 points. Structural analysis revealed that 80% of the FESI value is attributed to TI and PFI; thus, the index is highly sensitive to nominal monetary series and scale effects. A sensitivity check based on the geometric mean yielded a result of 775.0 points for 2025, confirming that the choice of aggregation method significantly impacts the final assessment. In conclusion, it is substantiated that FESI is useful for rapid monitoring over time; however, before interpreting it as a "sustainability" index, an improved version taking into account inflation, energy, water, employment, and weight sensitivity is required.Keywords
FESI, integral index, floriculture, economic efficiency, composite indicator, sensitivity analysis, nominal indicator
References
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