Detailed Business Report on Australian Pecan Peanuts Market Analysis

This business report provides a detailed analysis of the Pecan Peanuts industry, focusing on the Australian market. The report begins with an overview of the industry, including production and export forecasts. It then delves into health issues associated with pecan peanuts and other nuts, followed by an examination of quality assurance conditions for machinery and the costs of a new machine. The report includes hypothesis testing to compare different machines, a pros and cons analysis regarding the purchase of new equipment, and an assessment of customer satisfaction. A SWOT analysis is conducted to explore potential expansion opportunities. The report concludes with a summary of findings and recommendations. The report also includes calculations for cost analysis, hypothesis testing, and customer satisfaction, along with visual elements like diagrams and charts to support the analysis. This report is designed to provide a comprehensive understanding of the pecan peanut business and inform strategic decision-making.

Business Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Issue related with Pecan Peanuts............................................................................................3
1.1 Overview of Australian Pecan industry............................................................................3
1.2 Linear forecast of export production................................................................................4
1.3 Health Issues in the Pecan, Peanut, Cashew and Pistachio Market..................................4
1.4 Quality Assurance Conditions for Machine Working......................................................5
1.5 Cost of new machine........................................................................................................5
1.6 Hypothesis testing for possible difference in two machines............................................6
1.7 Pros and cons analysis......................................................................................................6
1.8 Customer satisfaction.......................................................................................................7
1.9 SWOT analysis.................................................................................................................7
1.10 Summary.........................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Pecan is explained as a nut which is produced by the form or species of hickory tree and
it is native within North America. The major exporter of Pecan peanuts is US that deliver Pecan
peanuts among all over the world. Wild pecan are the major food source for individuals who are
focused towards health benefits (Boscardin and et.al, 2017). Pecan peanut is explained as a
major source of protein, fibre and healthy fats which keep an individual energetic and satisfied.
Moreover, this report highlights on issue related with pecan peanuts and also overview of
Australian pecan industry. Health issue related with peanut market and use of appropriate
machine to analyse their overall cost will also included in the report.
MAIN BODY
Issue related with Pecan Peanuts
The pecan is native to Texas and this define it is an official state tree which is grown
among all areas of the state. It also explains that it is a part of Texas tradition. But with increase
in demand of Pecan this is identified that Pecan is planted as an anticipation that generate
challenges for produce and manage quality pecans within each year. Over-cropping, Freeze,
poor-soil drainage etc. are the problems or issue related with Pecan Peanuts.
1.1 Overview of Australian Pecan industry
From last thirty years, Pecan is growing within Australia within Wichita and Schley.
These two areas are the major cultivars of Pecan peanuts within the Australian region. There are
various problems occur that create challenges or issue for Pecan tree. The combination of poor
soil, no irrigation, no nitrogen and less weed control generate challenges for Pecan tree to
survive in market. On the other side, majority of Australian Pecan crop is grow under irrigation
factors related with Gwydir valley,New South wales and east of Moree. Along with this existing
production of the Australian Pecan industry almost 3,000 tonnes is produced by Australian
farmers. This refers task is completed with analysis of Australian demand of nuts in local and
international region (Qiao and et.al, 2017).
The Trawalla farm is one of the major area that was established in the year 1970 and
slowly this is expanded within years. To become a full production pecan tree almost ten years is
required and it is a long time-period. But Pecan trees are extremely long-lived and also they are

highly productive that retain for more than a century. Dry conditions generate a lot of problems
that impact on growth of Pecan peanuts. Some major issue which generate problems for Pecan
Peanuts are mention as follow:
 Poor Soil Depth and Texture- Native pecan tree along river side and it define about all
streams related with water. This is because water availability, appropriate soil depth and
good internal soil drainage perform an important role for ideal sites. In many areas where
Pecan peanuts grow undertake different systems that aids to grow trees through
understand of all soil types.
 Poor Soil drainage- Development as well as growth of healthy Pecan tree is based on
healthy roots. Rate of good root exists when soil is 50%, air is 25% and water is also
25%. When Pecan soil is dry at that time tree face problems to survive, similarly, too wet
soil also results to tree death.
With analyse of overall market this is analysed that Australian Pecan is sold within Kernel
through selling their products with use of retail and manufacturing channel. On the other side,
Stahmann farms operates Australia largest pecan processing plant that is used to supply peanuts
in the domestic and international market.
1.2 Linear forecast of export production
The forecast of Peanut market include (Volume), (Value and volume), (price trend
analysis) etc. and it define market is segmented through analysis of different region. It consider
that Peanut market is projected and estimated about formulation of CAGR with 4.5%. This
define that estimated time and sales consider to deliver almost 45% of domestic production of
Pecan Peanuts within international market. This is because demand of Peanuts is increasing with
rapid speed so to fulfil requirements Australia Pecan peanuts producer also start their work as
exporter and it also them to earn more revenue (Murley, Kelly and et.al, 2020). It also consider
individuals are highly interested to consume sources related with unsaturated fats, proteins, fibre
and minerals. Pecan peanuts is enrich with all such resources and it aids to grew and perform
work according to production activities of Pecan.
1.3 Health Issues in the Pecan, Peanut, Cashew and Pistachio Market
Nuts (tree nuts, pecan peanuts and other) generate different nutrient factors and it define
about all those aspect that are complex matrices and also it is related with unsaturated fatty
products. Bioactive compounds, highlighted protein, minerals, fiber etc. aids to perform task

according to their health outcome. But sometimes nuts generate challenges for an individual and
it determine that body's immune system overreact if the number of protein value that is found in
nuts is increased. The potential threat defines that allergic reaction generate problem for
individuals due to which skin of a human is impacted.
The major reason due to which healthy products such as nuts including cashew, peanut
and pecan is impacted define heat or acid generate problems for nuts. These results that even
they are cooked, digest and processed but it impacts on person health who consume the nuts.
Moreover, antibodies latch related with proteins trigger immune system for release of chemical
known as histamine. This is actually a factor which generates symptoms related with allergic
reaction. Therefore, if an individual who is allergic towards peanuts must not consume factors
that impact on their health (Marchetti and et.al, 2017).
1.4 Quality Assurance Conditions for Machine Working
Quality control for machinery is identify as a crucial task that is used for managing and
controlling efficiency of a product. Simple checklist inspection and customised inspection are
two methods that are used to check the quality of Pecan Peanuts. Technical staff has the
experience related with quality control of machine because they engage different equipments
such as machinery, inspection and their testing.
The probability of failure of new machine = 0.20%
The probability of failure of new machine = 0.80%
Probability of one machine working all the time = 0.9999%
Since the most recent testing of both computers, the current and existing machines had a
0.20 percent and 0.80 percent chance of breakdown, accordingly. Product improvement
agencies, on the other direction, report that one unit is 99.99 percent functional. On the basis
of it following calculations are drawn to satisfy the condition:
Formula: Probability of working – probability of failure
Old machine New machine:
= 0.9999% - 0.20% = 0.9999% - 0.80%
= 0.7999% = 0.1999%
1.5 Cost of new machine
Current profit forecast for upcoming six years = 2000 per month

Interest on the loan = 9%
Loan amount = 96000
Yearly estimated income for Pecan Peanuts = 2000 * 12
= 24000
Profits for all the years could be determined with the help of following table:
Year Income Income at the end of the
year
Total profits
1 24000 24000 24000
2 24000 24000 + 24000 48000
3 24000 48000 + 24000 72000
4 24000 72000 + 24000 96000
5 24000 96000 + 24000 120000
6 24000 120000 + 24000 144000
Total interest on the loan on yearly basis = 8640
If indeed the loan is taken for four years or 48 months, the payment will be made off
comfortably. The association has been expected to take the loan for 48 months so the incomes
would be 96000 at the end of year 4. This time frame would allow the company to stay under
budget and obtain a loan to purchase the new machine (Cheng, 2017).
1.6 Hypothesis testing for possible difference in two machines
In order to replace the old machine two new alternatives are being selected by Pecan
Peanuts. Some of the specific information relate to them is as follows:
Machine A:
Sample packets = 30
Mean weight = 180gm
Standard deviation = 40gm
Machine B:
Sample packets = 40
Mean weight = 170gm
Standard deviation = 10gm

1.7 Pros and cons analysis
The new machine should be bought or not:
Pros Score Cons Score
Higher productivity 8 High cost of new machine 7
Increased quality of nuts 7 Training to staff to operate the
new machine
8
Reduction in time 8 Interest to bank 7
Enhanced revenues 6
Increased profits 6
Manufacturing of healthy
snacks preferred by customers
9
Total 44 Total 22
The above list illustrates that the benefits of purchasing a new machine outweigh the
disadvantages, so Pecan Peanuts should buy a different machine because it would encourage
them. If it is acquired, sales, earnings, efficiency, and other factors will improve, and the time
spent on production processes will be minimised (Cannon and Cannon, 2019).
1.8 Customer satisfaction
With the relevant respondents, it was confirmed that the majority of people thought about it
because of the high quality and protection of pecan and peanuts. Its flavour and sweetness of all
nuts, except green beans, pecans, cashews, and peanuts, is very strong. The majority of the
selected respondents gave them the best rating. This also implies that their customers would like
to allow others to eat the nuts but they're very beneficial to one's welfare (Bock and Hotchkiss,
2020). Any kind of nut is likely to be picked up for use by others. The overall average for the
pecan peanuts brands is optimistic, helping the organization to broaden and reach excess supply.
1.9 SWOT analysis
This approach is used by businesses to characterize corporate attributes, challenges,
obstacles, and possibilities in order to ascertain and propose strategic plan. They decided to
improve their pecan peanut food line by including Macadamia and Almond Snacks. SWOT
review will be performed as well to assist the corporation in creating meaningful judgments:
Strengths Weaknesses

 Its objective is to gain earnings
growth consumption and even the
sector's business model.
 Macadamia and Almond Snacks
contribute to increase sustainability.
 While introducing a new product line, the
organisation should include staff
preparation so that they can learn more
skills and incorporate it more consistently.
This will therefore necessitate the training
of new workers (Russo and Hinson, 2019).
 Development prices are ridiculous and
have a financial influence on the industry.
Opportunities Threats
 Expanding the market presence
makes it possible to reach out to
consumers who love balanced bites.
 It presents a strong growth and
makes it quite well by business -
cycle.
 Competition from Macadamia and Almond
Snacks has an effect on the Pecan Peanuts
market.
 The development of the new product line
would also be confronted with
dissatisfaction, as clients may not accept
the new line.
1.10 Summary
According to the overall report, pecan and peanuts are in high demand in the industry, so the
corporation decided to extend their product range, that necessitated the purchase of new
machinery. Conclude, it has been proposed that the corporation buy new equipment because it
aids in the manufacture of high-quality products, increases production, demand, and consumer
market, and boosts productivity (Crisler and et.al, 2020). New changes including such
Macadamia and Almond Snacks are introduced, and the company is making an effort to appeal
to all of those who choose healthy foods. They review the results to determine whether the
company can extend their line of products or not using a pros and cons study. Since the
advantages outweigh the disadvantages, management agreed to begin manufacturing of modern
equipment and conduct a SWOT review to determine the capabilities, weaknesses, risks, and
prospects. Based on this, the company develops many tactics to ensure that expansion maximises
competition and also profit margins, resulting in massive development for the pecan and peanut
industries.

REFERENCES
Books and Journals
Boscardin, J. and et.al, 2017. Pecan growth under different soil preparation and hole sizes:
coleopterans as bioindicators. Pesquisa Florestal Brasileira. 37(92). pp.587-596.
Qiao, X., and et.al, 2017. Comparison in qualities of different China pecans and China pecan
oils. China Oils and Fats. 42(1). pp.139-143.
Murley, T., Kelly and et.al, 2020. A comparison of fatty acid and sensory profiles of raw and
roasted pecan cultivars. Journal of Food Science. 85(9). pp.2665-2672.
Marchetti, L., and et.al, 2017. Characterization of pecan nut expeller cake and effect of storage
on its microbiological and oxidative quality.
Cannon, D. F. and Cannon, L. E., 2019. Headlines vs. History: A case study comparing agenda-
setting results to historical interpretations of the 1938 San Antonio pecan shellers’
strike. Media History. 25(2). pp.208-224.
Bock, C. H. and Hotchkiss, M. W., 2020. A Comparison of Ground-Based Air-Blast Sprayer and
Aircraft Application of Fungicides to Manage Scab in Tall Pecan Trees. Plant
disease. 104(6). pp.1675-1684.
Crisler, G. B., and et.al, 2020. Lead removal using biochars obtained from slow pyrolysis of dry
and water-soaked pecan shell biomass. Separation Science and Technology. 55(11).
pp.1947-1956.
Russo, S. and Hinson, S., 2019. Enabling technologies and technical solutions for the Energy
Internet: lessons learned and case studies from Pecan Street Inc. In The Energy
Internet (pp. 203-221). Woodhead Publishing.
Cheng, S., 2017. Optimization of sensor array of electronic nose for aging time detection of
pecan. Transactions of the Chinese Society of Agricultural Engineering. 33(3). pp.281-
287.