Nuts Producing Industries in California

This report discusses the nuts producing industries in California, including their challenges and the leading organizations in the industry. It covers the political, economic, social, and technological impacts on the industry.

Running head: NUTS PRODUCING INDUSTRIES IN CALIFORNIA
Nuts producing industries in California
Name of the student:
Name of the university
Author’s note:

1NUTS PRODUCING INDUSTRIES IN CALIFORNIA
Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Background situation.......................................................................................................3
3. PEST analysis.........................................................................................................................4
3.1 Political impact.................................................................................................................4
3.2 Economic impact..............................................................................................................4
3.3 Social impact....................................................................................................................4
3.4 Technological impact.......................................................................................................5
4. Porter’s analysis.....................................................................................................................5
4.1 Buyer’s power..................................................................................................................5
4.2 Suppliers power................................................................................................................6
4.3 New entrants.....................................................................................................................6
4.4 Threat of substitute...........................................................................................................6
4.5 Rivalry degree..................................................................................................................7
5. Five leading organizations.....................................................................................................7
5.1 Blue Diamond Growers....................................................................................................7
5.2 Paramount Farms.............................................................................................................8
5.3 Primex..............................................................................................................................8
5.4 John B. Sanfilippo & Son, Inc.........................................................................................8
5.5 South Valley Farms..........................................................................................................8
6. Prevention from theft in industries.........................................................................................9

2NUTS PRODUCING INDUSTRIES IN CALIFORNIA
7. Summary................................................................................................................................9
8. Recommendation..................................................................................................................10
References................................................................................................................................11

3NUTS PRODUCING INDUSTRIES IN CALIFORNIA
1. Introduction
California is the leader for producing nuts and fruits crops (Perez et al., 2017). A big
amount of nuts in United States comes from California and for this, nuts are contributing
commercially. California is dominating not only in national but also global markets as this
industry from California is producing nuts with standard quality. As the industries in
California is leading for their nuts production they are also facing several issues like theft,
challenges with new companies, products, and the pressure of high demand. In 2014,
California was leading second position for producing agricultural crop that was having value
of 5.9 billion in frame gate (Johnson & Cody, 2015). This report will discuss on the
production of nuts in California and the issues faced by California industries. Initially this
report will start form the background situation of the industries in California and the situation
that the industries are facing that includes theft issues at all stages. PEST analysis for the
California nuts industries will be provided to understand the situation more deeply and to get
about the issues more precisely. After that, there will be porter’s fiver forces to analyse about
the situation that industries are facing. In the second last, there will be five organizations
name that leading in the California to provide the standard and needs in the market.
2. Discussion
2.1 Background situation
California industries are the leading to server for fruits and nuts and the one major
source for maintaining economic factors (Conlon, 2016). For this high supply, chances of
stealing items and competition with other industries are becoming major concern (Miller et
al., 2015). There are numbers of barrier for delivering goods as per demand with maintained
standard. California industries produces 1.4 billion nuts farm gate and that supports over
60,000 jobs.

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3. PEST analysis
3.1 Political impact
Political impact is major concern for every industries, nut-producing industries has no
exception for their diverse for processing (Cooley et al., 2015). One big concern for the crops
is traffic issue for the delivery goods as per the demand. Political aspects for some times
changes as well for supply and that makes issues for production industries. California
industries producing nuts has global standard that works with US rules and it is monitored by
MRLs by other countries. License is required to keep maintain the quality, environment
sound and the main pesticides in the Californian so these factors is dependent on political
aspect and it may change as per the demand and the political need depend on the time.
3.2 Economic impact
In this analysis, it is found that central valley has counties such as Butte, Glenn,
Colusa, Merced, Fresno, Kings, Sacramento, San Joaquin etc. Nuts makes a direct impact on
economics of the country as it provides large number of employ abilities as it has large
production demand. Nuts and almond demand in California is very high and for that reason,
many countries take almond from California (McCullough et al., 2017). As per the University
of California, it has been found that from its report that on 2014 that California makes
contribution of 100,000 jobs directly to employment of California economic that includes
purchase support from industries. It has been also found that value of 11 billion dollar was
added to the gross product of California State.
3.3 Social impact
Nuts growing industries have large number of demand in California and all over the
world. California is the leader for producing nuts and fruit all over the world and nuts are
very much demanded as ingredients for many products (Medellín-Azuara et al., 2018).
Demand of dry fruit and nuts, almond is increasing very fast along with the population. It is

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possible to produce large amount of nuts with increased number of workers and industry.
Therefore, the demand and population both are increasing as the time goes invention of new
item is increasing and almond is very much healthier and good for taste as well so it is need
very much.
3.4 Technological impact
Industries in California has very large number of demand and they are leaders to
produce almond and nuts and with this much increased demand it is very much needed to
have that capacity and technology to supply nuts as per the demand along with the quality.
There are various machines and technological devices that making a big impact on producing
and delivering products on the given time (Audretsch et al., 2016). With technology, it is
possible to know about the weather condition very easily and do the task on farm as per the
weather. Knowing demand and condition with technology is very easy in less time and effort
that gives production more faster way.
4. Porter’s analysis
Industries producing nuts in California will be analyse by taking nuts as player. Here
the grocery retailers as the key buyers is taken (Tran, 2017). Porter’s five forcers are Buy
power, supply power, threat of substitutes, new entrants, and degree of rivalry. Below all
these are discussed one by one.
4.1 Buyer’s power
Buyers in the industry can be divided in three different groups that are, wholesalers,
food processing and processing companies. From the grocery retailers tries to be big
organizations that willing to pay for pre-packed in the nuts market (Craig et al., 2016). Dealer
will sell nut again goods to a different small seller that does not have good financial influence
and power to manage demand on nuts to such as chocolate products as other ingredient.

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Products in the market are violated very highly. As per the report in 2009, almonds
production was decreased at large scale with value price, it was decreased by 30% in the
month of August to December in 2008. After that in the year 2010, it again increased by 39%
of costs, it was founded as big increase in the cost of almond.
4.2 Suppliers power
Products such as fertilizers are manufactured and given by increased chemicals from
the companies. Large amount of demand for this products grants companies to use chemicals
in order to maintain prices, it has high found that it is dependent on the process of
manufacturing and its price. Examples are nitrogen-based price of fertilization that comes
with ammonium nitrate, ammonia has dramatically enlarged. Global lack of demand for
phosphate has made its price to get upwards dramatically. Whereas the fertilizers are
typically products dare the simple chemicals and that makes small sizes nuts to be purchased
from growers. All over, it can be said that the industry is moderate as per the nut growers
industry.
4.3 New entrants
The coming of entrants as new into the growing industry of nuts makers typically
purchasing of land that are suitable. If it is required tree and crops of nuts, provision of
capital working machinery to sustain starting operations. The problems to gather nuts, a cart
is needed to collect and hold nuts and a truck of forklift to load fully totes (Tanner, 2015).
Machineries are relatively expensive for this as compared to machinery of agricultural that
combines harvesters. Looked price can be low for industry. Nut producing industries as a
consequence is fragmented fairly and depend on large amount of family farms. Cost of
looked and less economics of scale makes in larger amount from coming entrants.

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4.4 Threat of substitute
Nuts growing industries generally have large number of verities but when it comes to
use these nuts as ingredients for products, they are not the real. Fruits are an alternative
ingredients option for making products such as snacks. This alternative option to finish
productivity of food although comes with low cost but it becomes high when going for
expensive commodity (Belasco, 2014). It is considered as to be of low price alternative
especially when the price of nuts increases. Food products does not have any substitute that
uses nuts ingredients. Overall, it can be said that the threat in the market for this substitute is
very less.
4.5 Rivalry degree
There are various numbers of companies in California for the nuts growing and this
small companies makes industry for the nut growing. The plenty of companies making rivalry
arise, yet this is equal by small sizes of their relative. Rivalry is mainly between either
wholesalers, companies processing food or retailers of grocery. Rivalry is competition is
although very less as switching is very low but for long term planning it may be large
difference as the demand of nuts are very much high. Increase in rivalry can often found due
to products nature that enables buyers to make purchase form where they want as per their
demand.
5. Five leading organizations
5.1 Blue Diamond Growers
Blue Diamond nuts growers was established in 1910, it is based in California
agricultural marketing and the cooperative firm that consists of almonds. This company is
cooperatively is taken by about 3,000 growers (Privacy Policy, 2019). Their plantation is
form Red Bluff and it is situated in the Tehachapi Mountains north base. This company has

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been recorded for 775.3 million dollar revenue in the year of 2010 in the comparison of 709.3
million dollar in 2009. This company’s net income is 496.3 million dollar in 2009.
5.2 Paramount Farms
In the world Paramount farms is one of the biggest farm for producing almonds. This
company comes with operation such as hulling, processing, farming, harvesting and nuts
packing. Orchards of this company is situated at San Joaquin valley. Larger than 1.3 million
of square feet span is facilitated for processing and storage. Its production for consumers
comprises of Wonderful® Pistachios, Everybody’s Nuts! ® Pistachios, and Almond
Accents®.
5.3 Primex
Primex is founded in 1989 in California, This is the 4rth generation Pistachios of
grower and processor. This company also exports at international level of dry fruits along
with nuts. In the year of 2010, this company had shipment of 276.7 million pounds total and
it was increased of 7% in that year. Shipment for domestic level were 14.8% up and 4.2% up
export level.
5.4 John B. Sanfilippo & Son, Inc.
This company is an processing and marketer for tree peanuts and nuts and other
various product such as US snack. This company works for operating segment only that
includes selling of large number of nuts product. In the year of 2009, this company brand
catcher introduced twenty new products. Company was recoded for revenue of 562 million
dollar in the year of 2010 that was record of increase as 1.7 percent in comparison of fiscal
2009. Net income for the company was fourteen million dollar in the year of 2010.

9NUTS PRODUCING INDUSTRIES IN CALIFORNIA
5.5 South Valley Farms
South valley farms is one of the leading almond growers in California (NVD -
Results, 2019). This company’s total nut acreage is 10,993 and this company recorded as fifth
position in year of 2011 (Hammons, Herman & Stalker, 2016). This company has 10,993
acreage. South valley farms have tracking system of their product to have real time track of
their product.
6. Prevention from theft in industries
California is producing very large amount of nuts and almonds that and it is directly
affecting country economical state (Gyedu-Akoto et al., 2014). With this much of large
production, it becomes easier for thieves to lead with crime. Fictitious pickup is one method,
in which thieves come to take nut load earlier then company trucking does come to make
distribution as legitimate with false paperwork. Next time, truckers that are unknown are
marked while picking up for returning cash. There are number of ways from where thieves
get chances for making illegal activities. For preventing such crime, it is required to have
stricter security that no thieves can bypass this security. It is very important to know and have
accurate information of who is coming to pick and must verify for the person who is picking.
Next important is to include due diligence making sure of the delivery is going to the right
place within the estimated time. A tracking device is important to have the right track of the
product and have a continuous contact with the delivery point and the driver. It is very
important to have right contact and real time information with clients and the delivery person
along with tracker of products. This will provide additional required information if anything
happen in between that they can gte to know that where and when it is possible that crime
took place.

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7. Summary
This report has discussed all the issues related with the industries that they are facing
while producing nuts in California. At initially this paper has discussed about the situation
that industries are facing in California that are producing nuts. As the California is leader for
producing nuts so industries are, facing theft issues and they are not successful to provide
safety of their products. How companies are facing competition with each other and it is
found that they are not having much rivalry because of very less difference in prices in
different companies. Using porter’s five forces report has also describe about the situation of
industries in recent and how they are dealing with the situation. It mainly describe about the
structure of the company how things are going and what are the factors the affecting nuts
industries. This paper has also PESTLE analysis to describe about the challenges faced by
different industries and the factor outside the industries that making difficult for the industries
to survive. Pestle analysis has discuss about the strength and weaknesses of the industries.
Five industries such as blue diamond growers, paramount farms, primex, John B and South
valley farm are the leading industries in California that leading industries to produce Nuts and
almonds.
8. Recommendation
From the above discussion, number of recommendation is found to protect from theft
issues in California industries. At very first CC TV camera is required at each place of
working to know about the situation which is going around, second is to have a tracker for the
delivery of nuts and food and along with this tracker there must be good communication with
the delivery person to know about the situation and to have a real time tracking of product. In
security features, there should be a proper identification plan to verify the person who is
coming for the purchase of products. Time should must be noted at each event that what is
happening and when to have a record about the activities that are going inside the industries

11NUTS PRODUCING INDUSTRIES IN CALIFORNIA
and outside as well. Management and risk analysis should be performed to avoid security
issues because this security issues will arise at each time with some new constraints and for
that industries should must be prepared to face. Testing of the products must be done properly
as there are number of different options in California and non of customer will deal with
quality issue of the product. Therefore, the products must be prepared as per the market
demand.

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industry. Cornell University Press.
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Tech. L. Rev., 19, 397.
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