Assessing Issues for Pecan Peanuts

This document discusses various issues related to Pecan peanuts, including the background of the Pecan industry in Australia, linear forecasting of export production, health-related issues in the nut market, quality assurance for machine working, cost of a new machine, hypotheses testing for differences between machines, advantages and disadvantages of expanding with a new machine, customer satisfaction, and SWOT assessment for expansion.

PECAN PEANUTES

Introduction......................................................................................................................................3
1. Assessing issues for the Pecan peanuts.......................................................................................3
1.1 Background of Pecan industry in Australia...........................................................................3
1.2 Linear forecasting of the export production for the year 2021 & 2022.................................3
1.3 Health relates issues in Peanut, Pecan, Pistachio and Cashew market..................................5
1.4 Quality assuring conditions for the Machine Working..........................................................6
1.5 Cost of the new machine........................................................................................................6
1.6 Hypotheses testing for the differences present between 2 machines.....................................6
1.7 Advantages & disadvantages in expanding for new machine...............................................8
1.8 Satisfaction of customers.......................................................................................................9
1.9 SWOT assessment for expansion..........................................................................................9
1.10 Summary................................................................................................................................10
2. References..................................................................................................................................11
Appendices....................................................................................................................................12

Introduction
Global awareness of health benefits of the dry fruits including the pecans is been driving
for an increased demand for nut products. Pecans are considered as native to central south &
south eastern areas of US & Mexico. The foremost commercial planting of the Pecans started in
year 1880s in US, currently pecans are deemed as commercially grown in other types of regions
with an inclusion of Mexico, Argentina, Israel, SA and Australia. The present study is based on
Peanut Pecan that produces wide range of the packed nuts product from main factory in UK. The
2 main packet sizes that are present include snack-size for small one & large one for the home
baking. Furthermore, the study provides useful information about peanut industry in Australia
and in determining the most suitable regions for making expansion in range of nut products.
Moreover, the report also highlights the trend of exports and the locally used items along with
forecasting for future periods.
1. Assessing issues for the Pecan peanuts
1.1 Background of Pecan industry in Australia
Pecans are considered as an alternate-bearing, self-incompatible tree & wind pollinated.
Different cultivars are needed within Pecan farm in ensuring cross pollination. The wind
pollination incurs during the month of September & the nuts mature till month of May when they
are been harvested. Trees of Pecan could grow from 20-40 m tall with the trunks up-to 2 meter in
terms of diameter. Large leaves of Pecan tree comprises of 15 small pinnate related leaflets & are
seen as deciduous (Brar and Danyluk, 2019). It is depicted that as the Pecan trees ages, the
pruning is crucial in maximizing the light interception of the sunlight that penetrates yield &
canopy of tree. Furthermore, it has been assessed that majority of Australian Pecan sector is been
located in the northern NSW & south eastern type of Queensland. The largest business operation
of Pecan is Stahmann farms property of Trawalla near Moree in southern hemisphere. There are
mainly around 100 pecan producers in Australia with greater than 180000 planted trees. Growers
belonging to Australian Pecan manufacturers association are producing approximately 94.9% of
the nuts in an entire Australia as per APGA, 2011 and the production has plateau approx 3
thousand tones since the year 2006. There is also seen a stronger interest within an expansion of
industry & production is been expected to rise approximately of 950 tons in the shell by the year
2025. Moreover, determining the suitable regions for the pecan production deemed as key factor
for aking expansion in an industry.
1.2 Linear forecasting of the export production for the year 2021 & 2022
S.No. Years Export Local

use
1 2014 11.9 1.2
2 2015 11.8 1.4
3 2016 15.8 1.6
4 2017 15.5 1.8
5 2018 20.3 2.1
6 2019 19.7 2.3
7 2020 25.5 2.6
8 2021 25.94 2.78
9 2022 28.12 3.02
2014 2015 2016 2017 2018 2019 2020
0
5
10
15
20
25
30
f(x) = 2.18214285714286 x + 8.48571428571429
f(x) = 0.232142857142857 x + 0.928571428571428
Export
Linear (Export )
Local use
Linear (Local use )
Interpretation- The evaluation & graph shows that over the period of 7 years export of the
company has seen as increasing which means that company is earning large amount of profits.
Moreover, local use product of an entity is also showing an increasing trend which reflects a
positive sign on its sales & profits (Zhang and et.al., 2017). With an application of linear
forecasting model, it has been identified that in 2021, the exports resulted as 25.94 and local use
as 2.78 that is increasing. Similarly, in 2022 also value of exports and locally used products will
rise. This tool seems as most suitable as it helps the company in forecasting its activities

accurately and effectively so that it could plan accordingly and is ready to meet any kind of
Uncertainty in the coming years.
1.3 Health relates issues in Peanut, Pecan, Pistachio and Cashew market
Produ
cts
Percent
age of
saturate
d fat
content
Pecan 20%
Cashe
w 30%
Peanut 15%
Pistac
hio 10%
Pecan Cashew Peanut Pistachio
0%
5%
10%
15%
20%
25%
30%
35%
20%
30%
15%
10%
Percentage of saturated fat content
Percentage of saturated fat
content
Interpretation- The graph reflects saturated fat level in different nuts as it can cause
various health issues to an individual like raising blood level, cholesterol level & increase risk
regarding cardiovascular disease to a large extent. Therefore, company must take corrective and
appropriate steps in avoiding such problems by keeping moderate fat content in the products.
The analysis indicates that cashew contains higher level of saturated fat of around 30% as

compared to other types of nuts (Atanasov and et.al., 2018). Further, Pecan contains high volume
of fat after cashew of approx 20% which is also a serious concern that needs to be addressed by
the company. Moreover, peanut and Pistachio contains 15 and 20% of fat which must be reduced
in order to prevent an individual from causing any health issues relating heart disease or
cholesterol.
1.4 Quality assuring conditions for the Machine Working
P(A) 0.2 P(B) 0.8 P()=P(A)*P(B) 0.16 so, P() = 1- P() 0.84 Let A be an event that new
production fails & B be an event that old production level fails.
1.5 Cost of the new machine
Loan
repayment
period 6 years
Loan payment
Sum of loan amount
/Discounting factor
£96000/({[1+.09)^6]-1}/
[.09(1+.09)^6]
£96000/4.48
£21428.57
Monthly
repayment £21428.57/12
£1785.714
Interpretation- The assessment reveals that the company can take loan for replacing its
old machinery with the new one as it has the capability to pay off monthly installment of £2000
and as per computation it needs to pay only £1785.714 for repaying the loan amount borrowed
by bank over the period of 6 years. This clearly depicts that monthly payment along with interest
lies within the budget of the company (Amarowicz and Pegg, 2020). It would take around 72
months in covering the cost of loan with payment of interest for the firm, this seems as equals to
6 years only.
1.6 Hypotheses testing for the differences present between 2 machines

H0: There is no significance difference between 2 machines
H1: There is a significance difference between 2 machines
Machine 1
Particulars figures
Sample 30
Mean weight 180
Standard deviation 40
Z score X-μ/σ
(30-
180)/40
-3.75
P-value from that of Z-table
P(x<30) 0.00009
P(x>30)= 1- P(x<30) 0.99991
P(30<x>180)= 0.5-
P(x<30) 0.49991
Interpretation- - From the above analysis it has been represented that the Z-score value
for machine 1 resulted as -3.75 by way of subtracting mean value from sample size and then
dividing it by the value of standard deviation. This shows that the probability of a sample size
less than 30 is of 0.00009 and less than 30 stated as 0.99991. This in turn leads to an evaluation
of P-value that is significance value resulted as 0.49991 which is less than 0.5 which mean that
alternative hypotheses will be accepted and the other one is been rejected (Fortner, 2020). This
clearly reflects that there is significant difference present between the 2 machines for Pecan
peanuts
Machine 2
Particulars figures

Sample 40
Mean weight 170
Standard deviation 10
Z score X-μ/σ
(40-
170)/10
-13
P-value from that of Z-table
P(x<40) 0
P(x>40)= 1- P(x<40) 1
P(40<x>170)= 0.5-
P(x<40) 0.5
Interpretation- The above table depicts that the value of Z-score for machine 2 accounted
as -13 through reducing mean weight from sample and thereafter dividing it by the value of
standard deviation. Further, probability of getting a sample size less than 40 seems as 0 as &
greater than 40 presented as 1 (Fernandes and et.al., 2017). Moreover, the probability of attaining
p value between 40 & 170 ascertained as 0.5 which in turn reflected as significance value. The p-
value showed as 0.5 which equate to decisive criteria of z-score that is 0.5 and means that
alternative hypotheses would be accepted and null hypotheses will be rejected as their present a
difference in between 2 machines.
1.7 Advantages & disadvantages in expanding for new machine
Should we buy a new machine?
Pros Score/10 Cons Score/10
Boosting safety measures 5 Costly 6
Saves time 8 Requires training to workers 5
Used equipment profit 7 Frequent updates 4
Increase in production 6 No need in long run 5
Staying updated with the
technology
3 Maintenance, transportation
and storage
6

Automation 4 Fear of obsolescence in
future
2
Increase sales 6 Value decreases 3
Total Pros 39 Total Cons 31
Average Pros 5.57 Average Cons 4.42
Interpretation- An evaluation depicts that purchasing new machine would be beneficial
for the firm as it would help the company in increasing the level of production which in turn
increases sales & profitability. It also helps an entity in automation in its processes which saves
company’s time and ensures quicker delivery of the products to ultimate customers (Wagener
and Kerr, 2018). Therefore, the average value of profits that the company will generate through
buying new machine resulted as 5.57. However, it has also analyzed that several limitations are
also been caused to company in purchasing new machine that includes high training cost,
maintenance expenses and obsolescence in future periods.
1.8 Satisfaction of customers
As the average value resulted as 3 for the entire question, it clearly states that most
preferred nuts by the customers are Pecan. The rating to the product in terms of freshness and
tastiness is been given as good that reflects neutral which means not excellent or high and not
bad or low. The customers will neutrally prefer for recommend the products of Peanut Pecan as
they do not like the product very much or very little (Farakos, Pouillot and Keller, 2017).
Therefore, it is suggested that the company must improve its quality and taste of its nuts so that it
could attract large customers and can increase the demand for its products in effective manner.
1.9 SWOT assessment for expansion
Strengths
 Wide range of products
 Avoiding health issues
 High demand
 Recognizable chain across the world
 Well known brand recognition
 Offering High quality
 Easy availability of the product
 Providing organic level of nutrition
 Increased profits and revenue
 Large customer base
 Growing success in product range
Opportunities
 Diversification of products
 Online selling
 Expanding products in new market
 Utilisation of Technological advances
 Affiliating partnerships
 To capture large share of market
 Benefits in the economies of the scale
 Loyal customers

 Healthy products for the customers
 Ensuring safety and security provisions
Weaknesses
 High price
 Imitable products
 Problems in distribution
 High cost of labour
 High training cost
 Large equipments needed
 Quality issues
 Building positioning in customers mind
 Low market share
 Health disease
Threats
 New entrant along with same type of
strategies
 Rising fixed costs
 Competition from low cost producer of
nuts
 Unexpected market related factors
 Changes in taste and preferences of the
customers
 Low prices of substitute products
 Change in the government policies and
legislations with regard to health and
safety
1.10 Summary
The above report concludes that Peanut industry in Australia is seen as growing because
it offers for organic and nutritional products that provide immense of protein to individual. Pecan
production for its exports and local use goods has been seen as increasing over the period of 9
years with an inclusion of prediction for coming years. As compared to the nuts, Almond is
counted healthier for the company so it seeks for making an expansion in new product line that
relates to Almond & Macadamia. With this diversification, company will gain achieve growing
success in overall industry and market of Australia.

2. References
Books and journal
Amarowicz, R. and Pegg, R. B., 2020. Tree Nuts and Peanuts as a Source of Natural
Antioxidants in our Daily Diet. Current Pharmaceutical Design. 26(16). pp.1898-1916.
Atanasov, A. G. and et.al., 2018. Pecan nuts: A review of reported bioactivities and health
effects. Trends in food science & technology. 71. pp.246-257.
Brar, P. K. and Danyluk, M. D., 2019. Validation of Enterococcus faecium as a surrogate for
Salmonella under different processing conditions for peanuts and pecans. Food
microbiology. 80. pp.9-17.
Farakos, S. M. S., Pouillot, R. and Keller, S. E., 2017. Salmonella survival kinetics
on pecans, hazelnuts, and pine nuts at various water activities and
temperatures. Journal of food protection. 80(5). pp.879-885.
Fernandes, G.D. and et.al., 2017. Chemical characterization of major and minor compounds of
nut oils: almond, hazelnut, and pecan nut. Journal of Chemistry. 2017.
Fortner, R. J., 2020. Evaluation of Two Pecan-Based Food Products Using Specialized
Ingredients (Doctoral dissertation, University of Georgia).
Wagener, E. A. and Kerr, W. L., 2018. Effects of oil content on the sensory, textural, and
physical properties of pecan butter (Carya illinoinensis). Journal of texture studies. 49(3).
pp.286-292.
Zhang, G. and et.al., 2017. Prevalence of Salmonella in cashews, hazelnuts, macadamia nuts,
pecans, pine nuts, and walnuts in the United States. Journal of Food Protection. 80(3).
pp.459-466.

Appendices
Task 4
Mean 2.588235 Mean 3.082353 Mean 3.094118 Mean 2.858824
Standard
Error 0.127785
Standard
Error 0.091993
Standard
Error 0.104014
Standard
Error 0.106053
Median 3 Median 3 Median 3 Median 3
Mode 4 Mode 4 Mode 4 Mode 3
Standard
Deviation 1.178115
Standard
Deviation 0.848132
Standard
Deviation 0.958962
Standard
Deviation 0.977764
Sample
Variance 1.387955
Sample
Variance 0.719328
Sample
Variance 0.919608
Sample
Variance 0.956022
Kurtosis -1.47822 Kurtosis -0.908 Kurtosis -1.69844 Kurtosis -0.64818
Skewness -0.12709 Skewness -0.39918 Skewness -0.27486 Skewness -0.10107
Range 3 Range 3 Range 3 Range 4
Minimu
m 1
Minimu
m 1
Minimu
m 1
Minimu
m 1
Maximu
m 4
Maximu
m 4
Maximu
m 4
Maximu
m 5
Sum 220 Sum 262 Sum 263 Sum 243
Count 85 Count 85 Count 85 Count 85