Business Report for Pecan Peanuts 2020

This business report analyzes the pecan industry in Australia and compares it with other nuts like cashew, peanut, and pistachio. It also evaluates the production and different machines used for producing pecan.

Pecan Peanuts
Business Report

Date: May 2020
TABLE OF CONTENTS
Introduction.............................................................................................................................................1
1. Analysis of Issues for Pecan Peanuts................................................................................................2
1.1 An Overview of the Australian Pecan Industry...............................................................................2
1.2 Linear Forecast of Export Productions for 2021 and 2022..............................................................3
1.3 Health Issues in the Pecan, Peanut, Cashew and Pistachio Market................................................4
1.4 Quality Assurance Conditions for Machine Working......................................................................4
1.5 Costs of a New Machine.................................................................................................................5
1.6 Hypothesis Testing for the Possible Difference in Two Machines...................................................7
1.7 Pros & Cons Analysis “Should we buy a new machine?”................................................................9
1.8 Customer Satisfaction...................................................................................................................10
1.9 Initial SWOT Analysis about Possible Expansion...........................................................................12
1.10 Summary....................................................................................................................................12
2. References......................................................................................................................................14
3. Appendices.....................................................................................................................................15

Business Report for Pecan Peanuts 2020
Introduction
Business data analysis is very important as if the company will not analyse the working and the
changes taking place in the industry. This is pertaining to the fact that when the company will
analyse the business and the data then this will assist the company in taking proper and effective
decision. The current report will analyse the pecan industry of Australia and the comparisons
with other products like cashew, peanut, pecan and the pistachio. The current report will also
increase the knowledge relating to the production and the different machines used for producing
pecan. Also the comparison of the two machines will take place and one better will be selected.
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Business Report for Pecan Peanuts 2020
1. Analysis of Issues for Pecan Peanuts
1.1 An Overview of the Australian Pecan Industry
The Australian pecan industry is the one which is located within the northern New South
Wales and the south- eastern Queensland as well. There are many different producers of the
pecan but the largest pecan operator is Stahmann Farms Trawalla property which is near
Moree in north New South Wales. The pecan is the wind pollinated tree which is self-
incompatible and a variety of cultivators are needed for the farming of pecan. This wind
pollination occurs during the September and the nuts mature till May and at that time they
are harvested. These tree in Australia grows 20 to 40 m tall and the trunks have almost 2 m
diameter (Pecan industry expansion, 2016). In Australia the Australian Pecan Growers
Association (APGA) is the one which produces approximately 95 % of the nuts in whole of the
Australia and production was plateaued around 3000 tonnes since 2006.
Hence, because of this reason there is a large interest of the Australian pecan industry to
increase the production. This is majorly because of the reason that when the company will
increase the production then this will increase the working of the company to a great extent.
The major requirement for the growth of pecan in the country is majorly to maintain right
chill and heat, along with proper water and soil usage and to keep a track of the possible risk
factors as well. Further from the analysis it was clear that the country need to work over the
increasing of the production of the pecan and related nuts. The major reason for this is that
the consumption of the pecan is very important for the people as this is beneficial for
increasing the health benefits of the company to a great extent (Nadler, Chen and Lu, 2017).
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Business Report for Pecan Peanuts 2020
1.2 Linear Forecast of Export Productions for 2021 and 2022
2014 2015 2016 2017 2018 2019 2020 2021 2022
local use 1.2 1.4 1.6 1.8 2.1 2.3 2.6 2.78 3.01
export 11.9 11.8 15.8 15.5 20.3 19.7 25.5 25.942
5
28.124
6
2014 2015 2016 2017 2018 2019 2020 2021 2022
0
5
10
15
20
25
30
35
1.2 1.4 1.6 1.8 2.1 2.3 2.6 2.78 3.01
11.9 11.8 15.8 15.5
20.3 19.7
25.5 25.9425 28.1246
Chart Title
local use export
From the above graph and table, it is interpreted that the estimated export of the pecan for 2021 is
25.9425 and the 2022 is the 28.1246. on the other side the local use of the pecan is 2.78 for the year
2021 and 3.01 is estimated for the year 2022.
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Business Report for Pecan Peanuts 2020
1.3 Health Issues in the Pecan, Peanut, Cashew and Pistachio Market
From the study it is clear that all the nuts are very good for the health of the person. This is majorly
because of the reason that with help of consumption of the nuts the people can get good amount of
nutrients and proteins which are helpful in managing their health and safety (Maciel and et.al., 2020).
Thus, for this the major type of nuts available are the pecan, cashew, pistachio and the peanuts. All
the four nuts are good for health but the major good is the pecan as compared to the other nuts. This
comparison is done on several bases which are the calories, protein, fat, fibre, carbs and many other
different bases.
Calories Fat Protein Carbs Fiber Vitamin E
Magnesiu
m
Cashew 155 12 5 9 1 1 % of RDI 20 % of RDI
Peanut 176 17 4 5 3
21 % of
RDI 11 % of RDI
Pecan 193 20 3 4 2.5 2 % of RDI 8 % of RDI
Pistachio 156 12.5 6 8 3 3 % of RDI 8 % of RDI
Calories Fat Protein Carbs Fiber
0
100
200
300
400
500
600
700
Chart Title
Cashew Peanut Pecan Pistachio
From the above chart and table, it is clear that the pecan is the much healthier nut which the person
must consume. The major reason for this is that when the vitamin E and the magnesium contain of the
product is very high. thus, this is good for the person and this is also assistive in order to improve the
health of the person and increase their safety.
1.4 Quality Assurance Conditions for Machine Working
As per the available data, it is being given that the probability of failure of the new machine is
0.20% while the probability of failure of the old machine is 0.80% (Kala, 2019). Since, the
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Business Report for Pecan Peanuts 2020
production of the pecan needed to be regular and continuous on any of the one machinery,
therefore, an evaluation of the both the machinery is being done below.
Likelihood of failure of the new machine = 0.20%
Likelihood of failure of the old machine = 0.80%
P(A)= 0.20
P(B)=0.80
The affirmation of the quality assurance division demands a likelihood of 99.99% that one
machine would be running at all the occasions.
Probability in respect to the occurrence of the event simultaneously would be 0.20%*0.80%
= .0016
Likelihood of non-occurring of occasion is:
= 1-P(A)*P(B)
= 1-.0016= 0.9984 or 99.94%
Thus, there is only 99.84% chance that the one of the machines will be operating at all the
time in any event which does not meet with the expectations of the quality assurance
division. Therefore, Pecan Peanuts condition is not satisfied.
1.5 Costs of a New Machine
Month Opening value Interest Instalment Closing value
Jan-20 96000.00 720.00 2000.00 94720.00
Feb-20 94720.00 710.40 2000.00 93430.40
Mar-20 93430.40 700.73 2000.00 92131.13
Apr-20 92131.13 690.98 2000.00 90822.11
May-20 90822.11 681.17 2000.00 89503.28
Jun-20 89503.28 671.27 2000.00 88174.55
Jul-20 88174.55 661.31 2000.00 86835.86
Aug-20 86835.86 651.27 2000.00 85487.13
Sep-20 85487.13 641.15 2000.00 84128.28
Oct-20 84128.28 630.96 2000.00 82759.25
Nov-20 82759.25 620.69 2000.00 81379.94
Dec-20 81379.94 610.35 2000.00 79990.29
Jan-21 79990.29 599.93 2000.00 78590.22
Feb-21 78590.22 589.43 2000.00 77179.64
Mar-21 77179.64 578.85 2000.00 75758.49
Apr-21 75758.49 568.19 2000.00 74326.68
May-21 74326.68 557.45 2000.00 72884.13
Jun-21 72884.13 546.63 2000.00 71430.76
Jul-21 71430.76 535.73 2000.00 69966.49
Aug-21 69966.49 524.75 2000.00 68491.24
Sep-21 68491.24 513.68 2000.00 67004.92
Oct-21 67004.92 502.54 2000.00 65507.46
Nov-21 65507.46 491.31 2000.00 63998.77
Dec-21 63998.77 479.99 2000.00 62478.76
Jan-22 62478.76 468.59 2000.00 60947.35
Feb-22 60947.35 457.11 2000.00 59404.45
Mar-22 59404.45 445.53 2000.00 57849.99
Apr-22 57849.99 433.87 2000.00 56283.86
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Business Report for Pecan Peanuts 2020
May-22 56283.86 422.13 2000.00 54705.99
Jun-22 54705.99 410.29 2000.00 53116.29
Jul-22 53116.29 398.37 2000.00 51514.66
Aug-22 51514.66 386.36 2000.00 49901.02
Sep-22 49901.02 374.26 2000.00 48275.28
Oct-22 48275.28 362.06 2000.00 46637.34
Nov-22 46637.34 349.78 2000.00 44987.12
Dec-22 44987.12 337.40 2000.00 43324.52
Jan-23 43324.52 324.93 2000.00 41649.46
Feb-23 41649.46 312.37 2000.00 39961.83
Mar-23 39961.83 299.71 2000.00 38261.54
Apr-23 38261.54 286.96 2000.00 36548.50
May-23 36548.50 274.11 2000.00 34822.62
Jun-23 34822.62 261.17 2000.00 33083.79
Jul-23 33083.79 248.13 2000.00 31331.92
Aug-23 31331.92 234.99 2000.00 29566.90
Sep-23 29566.90 221.75 2000.00 27788.66
Oct-23 27788.66 208.41 2000.00 25997.07
Nov-23 25997.07 194.98 2000.00 24192.05
Dec-23 24192.05 181.44 2000.00 22373.49
Jan-24 22373.49 167.80 2000.00 20541.29
Feb-24 20541.29 154.06 2000.00 18695.35
Mar-24 18695.35 140.22 2000.00 16835.57
Apr-24 16835.57 126.27 2000.00 14961.83
May-24 14961.83 112.21 2000.00 13074.05
Jun-24 13074.05 98.06 2000.00 11172.10
Jul-24 11172.10 83.79 2000.00 9255.89
Aug-24 9255.89 69.42 2000.00 7325.31
Sep-24 7325.31 54.94 2000.00 5380.25
Oct-24 5380.25 40.35 2000.00 3420.60
Nov-24 3420.60 25.65 2000.00 1446.26
Dec-24 1446.26 10.85 2000.00 -542.90
Therefore, it will require nearly 5 years for the reimbursement of the amount of £96000 at 9%
interest.
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Business Report for Pecan Peanuts 2020
1.6 Hypothesis Testing for the Possible Difference in Two Machines
Steps for Testing Hypotheses
1. Order state
1.1 A Null Hypothesis: In this, assumption is that the said statement is true.
Therefore, the statement is stated and believed to be accurate.
1.2 An Alternative Hypothesis: It states that the provided statements are the
opposite of the null hypotheses.
2. Significance level
2.1 Measuring and distributing the underlying data.
2.2 The implied method and sample size of the population.
2.3 Sample characteristics necessary for sample population to be tested.
3. Test Statistic
A test for analysing test significance levels or set of confidence intervals (Hoijtink and
et.al., 2019).
4. Region of rejection
Expected measure of the test for the confidence interval
4.1 Reject the null hypothesis if the chances of it occurring are low for it to be
significant.
4.2 Reject the null hypothesis if the chances of it occurring are high.
5. Summation
Separating the problem in different parts and calculating the amount of samples to be
calculated without complexity.
6. In Conclusion
The results of the research are summarized and plotted in a graph.
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Business Report for Pecan Peanuts 2020
The first graph depicts the positive value and the second diagram highlights the
negative value after testing the hypotheses.
Sample Packets Means Weights
Standard
Deviation
First Machine 30 180 40
Second Machine 40 170 10
Test statistic = Difference in the sample-difference in the hypotheses
The standard error of the difference
=(Y1-Y2) –(u1-u2)
√S1 ²/n1+S2²/n2
U- Value from the Null Hypothesis
Y- Value of the sample mean
S- Value from S.D.
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Business Report for Pecan Peanuts 2020
N -the value of the sample size.
= (180-170)-0
√40 ²/30 +√10 ²/40
= 10/ 55.83
` = 0.179.
The values will be represented through the T diagram, and the p values required to be check
for determining their significance.
1.7 Pros & Cons Analysis “Should we buy a new machine?”
Should we buy a new machine?
Pros Score/10 Cons Score/10
The cost of depreciation
would be greater therefore,
management can claim
deducted for the same in
the income statement.
8 Significant impact over the
operating cash flow. 7
Tax shield will be high. 5
The asset might become
outdated due to
upgradation in the
technology.
10
The asset can be further
lease. 9
The working capital would
be affected due amount
being blocked.
2
No regular repair and
maintenance will be
necessary.
5 The cost of one-time
maintenance is very high. 5
Helps in achieving high
quality standards.
The net present value
might turn out to be
negative in the future
years.
5
Total Pros 37 Total Cons 29
Average Pros 7.4 Average Cons 5.8
Therefore, from the above analysis, the average of the pros is higher than that of cons, thus,
the company can purchase the new machine because of its benefits.
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Business Report for Pecan Peanuts 2020
1.8 Customer Satisfaction
After the analysis of the survey carried out, the graph depicts that the 30% prefers cashews,
followed by pistachios with 27%.
27%
20%
23%
30%
Preferences
pistachios
peanuts
pecans
cashews
Freshness Frequency Freshness * frequency
1 2 2
2 21 42
3 30 90
4 33 132
Sum 86 266
Average freshness = 266/86 = 3.09
On analysis of the freshness data, people have provided honest opinion pertaining to the
freshness of pecans sold out by the Pecan Peanuts. It can be concluded that the average
freshness is 3.09.
Tastiness Frequency Freshness * frequency
1 1 1
2 32 64
3 10 30
4 43 172
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Business Report for Pecan Peanuts 2020
Sum 86 267
Average tastiness = 267/86 = 3.10
The average tastiness derived from the above table and calculations is 3.10.
8%
28%
36%
26%
2%
Recommendations
Very unlikely
Unlikely
Neutral
Likely
Very likely
In the conclusion of the survey, it can be recommended that the most of the customers 26%
of the people surveyed are likely to recommend the products to other people.
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Business Report for Pecan Peanuts 2020
1.9 Initial SWOT Analysis about Possible Expansion
SWOT Analysis
Strengths
 Effective machine to process the products.
 The skilled workforce for its all around existing item. Hence preparing the current
labour force would be less expensive for Macadamia and Almond snacks (Gürel and
Tat, 2017).
Weaknesses
 Lack of adequate and sufficient resources for marketing the products to large
customer base.
 Ineffective financial planning for running the business.
Opportunities
 Identify the purchasing power of the customers and take advantage of the same
resulting into long term benefits.
 Introducing latest technology for meeting with the future demands effectively.
Threats
 Immense competition in the nut industry can pose as a threat to macadamia and
almond industry.
 Change in the climatic condition affecting the product quality.
1.10 Summary
The above business report has involved different aspects of the Pecan Peanuts. The
report portrays that there will be expansion in the fare and local utilization of walnuts over
next two years. We had the option to presume that constantly 2022, the creation for export
could arrive at 28 metric tons and it could arrive at 3.01 metric tons for local use. Since the
organization are as of now managing two creation lines, where one machine is old and its
disappointment likelihood is as high as 0.80 percent. In this manner, the organization are
searching for purchasing another machine to oblige the development of the item creations.
The pecan products is being well recognized and recommended to others. Also, the company
is having lot of opportunities to in this field for business expansion.
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Business Report for Pecan Peanuts 2020
{Body text wordcount, excluding diagrams/captions, etc approx. 2000 words. Suggested
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Business Report for Pecan Peanuts 2020
2. References
Nadler, S., Chen, A.N. and Lu, H.K., 2017. Pecan Production, Exporting, and Its Future: From
a Multi-Country Perspective. Journal of Applied Business and Economics, 19(8).
Maciel, L.G., and et.al., 2020. The potential of the pecan nut cake as an ingredient for the food
industry. Food Research International, 127, p.108718.
Kala, Z., 2019. Estimating probability of fatigue failure of steel structures. Acta et
Commentationes Universitatis Tartuensis de Mathematica. 23(2). pp.245-254.
Hoijtink, H. and et.al., 2019. A tutorial on testing hypotheses using the Bayes
factor. Psychological methods. 24(5). p.539.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research. 10(51).
Online
Pecan industry expansion. 2016. [Online]. Available through: <
https://www.dpi.nsw.gov.au/__data/assets/pdf_file/0006/586518/Pecan-industry-
expansion.pdf>
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Business Report for Pecan Peanuts 2020
3. Appendices
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contribute to the word count}
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