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Opening a dairy in Morocco
hanae belsakri
Writing By Hanane Belaskri

18.01.2023 | Bh Adviser | Morocco

Opening a dairy (Mahlaba) in Morocco: guide and advice

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Are you seeking a way to invest your money in Morocco?
Did you know that you don’t have to make investments in real estate or the bank in Morocco? Indeed, Morocco is full of interesting little tricks that allow you to make your investments profitable, often much more than some stock market investments. For example, there are dairies, better known as Mahlaba, which are small premises that sell mainly necessities. These small businesses bring in more or little net profit per month for their owner, especially if the premises are well located.

Let’s look at the procedures to follow to open such commercial premises and tips for a successful business.

Opening a dairy in Morocco

Legal form in Morocco

Like any commercial entity, the opening of the Mahlaba must be under a specific legal form. It can be a sole proprietorship or a limited company. Depending on the form selected, the business will be subject to income tax or VAT. To create a legal entity, it is simply necessary to follow the common procedure for creating a business in Morocco.

Opening authorisation in Morocco

To legally exist and trade in premises in Morocco, an agreement must be obtained from the authorities of the commune concerned. In Morocco, the application file must be submitted to the boroughs that follow the commercial premises. It is advisable to seek advice from a district to find out exactly what is required to finalise the installation in the district of choice. Indeed, the installation data change from time to time. Thus, seeking advice from an existing Mahlaba may not be sufficient. We recommend seeking advice from a district manager who will be able to advise on all the paperwork and processes that need to be followed for the final opening of the Mahlaba.

Elements to include in the creation budget in Morocco

A Mahlaba does not only open with the opening of premises. On the contrary, since different consumer products and first-use products will be sold, it is necessary to provide adequate equipment for conservation.

Apart from the premises, you should also have a counter fridge in which you can store your different types of milk and display them to customers. The price of this type of fridge counter is around 25,000 dhs, excluding installation costs. And, in general, the freshness of the fridge counter is not very sharp, which means that it is not possible to keep certain foods for long. For this, the dairy usually needs a second fridge for storage. This second fridge costs about 10,000 dhs.

It is also necessary to think about the various kitchen utensils that will be used to make juice on the spot, quick omelettes, tea, and all the small preparations that are eaten in Morocco for breakfast or lunch. For all these utensils, you need to budget about 10,000 dhs. And if the dairy plans to make the whey itself, it is necessary to consider buying a production machine that costs around 30,000 dhs. Some dairies prefer not to do the whey production themselves and outsource it to specialized companies. This can be profitable at first.

Costs related to the activity in Morocco

Once the premises are equipped and you are ready to start selling, it is advisable to have a working capital of about 50,000 dhs to properly equip the premises with goods and then start selling. Then it is time to recruit some people with whom the service can be provided daily. If the manager of the shop is also an employee, his or her salary should be included in the start-up budget for several months. The number of employees should be based on the number of customers. If the shop is located near schools or offices and there is a lot of traffic at certain times, it is better to have about 4-5 employees who will help with the preparation of the various orders.
It is important to add to all these amounts, a small envelope that will be used to maintain the premises, pay for electricity and all other amenities.

Benefits and advantages of a dairy (Mahlaba) in Morocco

It is advantageous to start a dairy (Mahlaba) business in Morocco, as you can have a large net profit each month. And, during Ramadan, the turnover can be increased by adding typical Ramadan meals.

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