Cambodia’s dairy industry is preparing for a significant expansion with the development of the country’s first large-scale fresh milk production and processing facility, a project designed to strengthen domestic milk supply and reduce reliance on imported dairy products.
The US$68 million investment will be developed in Veal Veng district, Pursat province, where approximately 1,000 hectares have been allocated for an integrated dairy operation that combines commercial milk production with local processing.
For U.S. dairy stakeholders monitoring the development of emerging dairy markets, the project illustrates how Southeast Asian countries are investing in domestic production capacity as milk consumption continues to grow and supply security becomes a higher priority.
The project, known as Farm Fresh Pursat, was formally advanced on August 5, when the Pursat Provincial Administration and Sonavith Co. Ltd., together with Malaysia’s Farm Fresh Group and Cambodia’s Alpha Group, signed a land lease agreement for the investment.
The development will focus on establishing dairy farms built to international standards while constructing a milk processing facility intended to strengthen Cambodia’s dairy value chain from production through processing.
According to project plans, the investment aims to increase the country’s supply of high-quality fresh milk, reduce dependence on imported dairy products and improve Cambodia’s ability to serve both domestic consumers and, eventually, export markets.
Provincial Governor Khoy Rida described the project as a historic milestone for Pursat province and Cambodia’s dairy sector, noting that the investment is expected to create employment opportunities while establishing what will become the country’s largest dairy farm.
From the investor’s perspective, the project also represents a strategic expansion into an emerging dairy market.
Loi Tuan Ee, Group Managing Director and Chief Executive Officer of Farm Fresh Bhd, said the company welcomed the support and incentives provided by Cambodian authorities, adding that the investment is expected to raise the profile of Pursat within Southeast Asia and internationally.
The initiative builds on a memorandum of understanding signed in October during the 47th ASEAN Summit and Related Summits, when Farm Fresh and Alpha Group agreed to develop Cambodia’s first large-scale fresh milk production and processing facility.
The investment comes after Cambodia experienced significant supply disruptions that highlighted the country’s dependence on imported fresh milk.
Following last year’s border conflict with Thailand, Cambodia faced a milk supply shortage because Thailand had traditionally supplied more than 76% of the country’s dairy imports. During July 2025, shortages left supermarket shelves without fresh milk while coffee shops and restaurants struggled to secure supplies.
Those disruptions accelerated efforts to expand domestic milk production, creating momentum for investments aimed at improving supply resilience.
As Cambodia develops its first integrated commercial dairy project, the investment reflects a broader trend among developing dairy markets: strengthening local milk production, expanding processing capacity and reducing exposure to supply disruptions in international trade.
Produced by eDairyNews, with information published by The Star.
