Business Report for Pecan Peanuts 2020

Pecan Peanuts
Business Report

Date: May 2020
Table of Contents
Introduction..............................................................................................................................................3
1.Analysis of Issues forPecan Peanuts......................................................................................................4
1.1 An Overview of theAustralian Pecan Industry................................................................................4
1.2 Linear Forecast of Export Productions for 2021 and 2022..............................................................5
1.3Health Issues in the Pecan, Peanut, Cashew and Pistachio Market.................................................7
1.4Quality Assurance Conditions for Machine Working.......................................................................9
1.5Costs of a New Machine................................................................................................................10
1.6Hypothesis Testing for the Possible Difference in Two Machines..................................................12
1.7Pros & Cons Analysis “Should we buy a new machine?”...............................................................13
1.8 Customer Satisfaction...................................................................................................................14
1.9 Initial SWOT Analysis about Possible Expansion...........................................................................15
1.10 Summary.....................................................................................................................................16
2.References...........................................................................................................................................17
3.Appendices..........................................................................................................................................18

Business Report for Pecan Peanuts 2020
Introduction
Pecan produces number of the packaged food products from the man factory in UK. It produces
packets of big size for snacks and big size for home baking. It also produces other nuts products. It
imports the shell on nuts from Australia. Company is performing well in the market and profits have
increased over the period significantly. Company is significant change in the customer taste and
preferences due to trend of health consciousness. They are moving towards healthy snacks these
days. Firm is proposing to expand the business due to the increase in sales and move of the people
towards healthy snacks.
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Business Report for Pecan Peanuts 2020
1. Analysis of the Issues for Pecan Peanuts
1.1 An Overview of the Australian Pecan Industry
Pecans constitute less than five percent of the world tree nuts trade and the consumption is highly
concentrated in US which is their native nut. Demand in Europe, Asia & Middle East is also growing.
Due to this reason market of Pecan has been strong over current period after entry of the China to
world market in the previous 2000. The intense new interests from China had limited the availability
of the products to other markets in the recent years. There are number of marketable benefits of the
pecan such as high level of the antioxidants that creates demand in the market as society is becoming
health conscious & are moving towards healthy products.
Nationwide production of the pecan orchards are approximately 3000 tonnes. Production increases
are seen after long stagnation period. Global production of the nuts is concentrated in Mexico and US
accounting for around 90% of the crops. Pecans long live and it remains productive for over century
that makes them the long term investments. Significant amount of the UK production for kernel is sold
for the domestic consumption with the distribution splits between the retail as well as manufacturing
channels (Brar and Danyluk, 2019). The Farms in country operates the largest processing plants of
pecan in UK from where it makes supplies to London kernel and in shell products to the domestic &
international markets. UK exports of the pecan are sold around the globe from Europe to Middle East,
North America, as well as East Asia.
Pecans in Australia are harvested in the Northern hemisphere meaning that the fresh products could
be shipped in major markets pre-Christmas seasons. Pecan industries of Australia have been fortunate
in remaining free from the troublesome scab diseases that blight high production in US. The industry
is growing at rapid speed due to the nutritious contents of the nuts and high demand (Kluczkovski,
2019). It generates considerable revenues from the exports which is expanding the industry over new
regions.
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