Navigating Success in the Dairy Industry: The Story of Brookside Dairy Ltd

Fist article

Brookside Dairy Ltd: An African company in Kenya venturing into the Dairy processing business.

Brookside Dairy is a private company whose central office is based in Ruiru Kenya.  The company came into existence in 1993 and has since become the leading company in dairy processing in Kenya (EBIZGUIDES,2007). The company is in the business of milk production, processing, and marketing within East Africa, Rwanda, Burundi, Egypt, and the Middle East (Bloomberg,2017).

The company is owned and controlled by the Kenyatta family who has the majority shareholding in the company. Abraaj Capital, a private equity firm investing in Asia and Africa among other continents has a ten percent shareholding in the company.

The company intends to have significant control of the dairy market in East Africa and beyond. Currently, the company enjoys the supply of its products to forty-five percent of milk consumers in Kenya ( Nassiuma, D and Nyoike, N, 2014).

Brookside Dairy has enjoyed significant domination of the dairy market in Kenya. Milk is among the most consumed products in Kenya and seeing the kind of control the company enjoys in the region, its milk supply to the consumers has increased. 

The rate of inflation in Kenya is at an average of 10.25 percent. This is from 2005 to 2017 (Trading Economics, 2017).  The shooting prices of food prices due to drought is the main cause of inflation. Brookside Dairy has been affected by the inflating economy since its milk supply mainly comes from dairy farmers. Drought affects dairy farming and the amount of milk produced during drought times is relatively low.

The Kenya Dairy Board is the body that comes up with policies relating to dairy business in Kenya. At the minimum, any dairy processing company should have appropriate permits and must meet certain standards.  There is a favourable business environment hence the success of Brookside Dairy in the region.

The dairy products business contributes six to eight percent of the country’s Gross Domestic Product (GDP) (Food Business Africa, 2017). The dairy industry has contributed to the growth of the country’s GDP.

Though the supply of milk has been on the rise by 20 percent compared to 2016, the increase has been slow and gradual. The increase is due to the improved methods of dairy farming in Kenya.

Second Article.

Xiaomi Corp: An Asian company located in China venturing into the electronics manufacturing business.

Xiaomi Corp is a privately owned company based in China. Its central offices are located in Beijing. The company manufactures electronics. The company was founded in 2010 (Bloomberg, 2017).

Though founded by Lei Jun amongst other seven major shareholders, Xiaomi Corp is owned by eleven private companies that have invested in the company. Among those companies are Morningside Group, and IDG Capital Partners.

Xiaomi’s main aim is to be the leading company in consumer appeal through reasonably priced high-end electronics. Its purpose is to offer better value for money than its counterparts in the same industry.

The rate of Inflation in China is at an average of 5.37 percent. This is from 1986 to 2017. The inflation is highly attributed to the cost of non-food products whose prices rose at a faster rate in 2017 than ever before (Trading Economics, 2017). Since Xiaomi ventured into the business of manufacturing smartphones, audio devices, and smart TVs among other electronics, its business has been affected by the inflation in the economy.

Government policies on the manufacturing of electronics in China have been favorable. As a result, there has been reasonable growth in the electronics business due to business-enabling government policies (Carmen, H, 2017).

Due to favorable government policies, the economic environment in China is good for the survival of companies like Xiaomi.  Due to its low-priced high-end phones, the company’s products are in high demand even outside China. The company has several warehouses in Europe.

The country experienced a 6.9 percent growth in GDP compared to the previous year (2016). The growth is mainly due to the increased exports of electronics (Trading Economics, 2017). This is an indication that the country is doing fine in electronics and companies such as Xiaomi stand a chance to benefit due to the booming electronics business.

Xiaomi has made major strides as far as increasing its supply is concerned. Recently, the company has conquered Samsung in sales. In 2014, Xiaomi became the most selling phone in China. In the world’s map, it was placed at the third position in the most selling smartphone brand in the world (Catherine S,2014).

 References

1. Bloomberg. (2017). Company Overview of Brookside Dairy Limited.
2.     Mfonobong , N .( 2015). Kenya’s 2nd Richest Man Sells Dairy Firm to Kenyatta Family-Owned Business
3.     (1978). African business. London, IC Magazines].
4.     EBIZGUIDES. (2007). Kenya. [Madrid] (169 Paseo de la Habana, 28036), Ebizguides.
5.     Nassiuma, D and Nyoike, N . (2014).Milk production and marketing in Kenya: A preliminary survey 2013report 
6.     Trading economics. (2017) Kenya Inflation Rate.
7.     Food Business Africa. (2017) The Dairy Industry in Kenya.
8.     Bloomberg. (2017). Company Overview of Xiaomi Inc.
9. Trading economics. (2017) China Inflation Rate.
10. Carmen H.(2017).Chinese brands break down barriers.
11. Trading economics. (2017) China GDP Annual Growth Rate.
12. Catherine S. (2014). Xiaomi Now The World’s Third Biggest Smartphone Maker, Says IDC