Cambodia is set to develop its first large-scale fresh milk production and processing facility through a US$68 million investment in Pursat province, a move aimed at strengthening the country’s dairy industry, reducing milk imports and meeting growing domestic demand.
The project, known as Farm Fresh Pursat, will be developed in Veal Veng district across approximately 1,000 hectares. It will feature international-standard dairy farms and a local milk processing plant, creating a fully integrated dairy production ecosystem capable of supplying both the domestic market and future export opportunities.
Celebrating a landmark partnership for sustainable dairy development: Rida (left) and Loi (right) shaking hands following the land lease signing ceremony for the Farm Fresh Pursat project.
The investment follows a land lease agreement signed on Aug 5 between the Pursat Provincial Administration, Sonavith Co Ltd, Malaysia’s Farm Fresh Group and Cambodia’s Alpha Group. The project builds on a memorandum of understanding signed by Farm Fresh and Alpha Group during the 47th ASEAN Summit in October 2025 to establish Cambodia’s first large-scale fresh milk production and processing facility.
Pursat Governor Khoy Rida described the project as a historic milestone that will establish the country’s largest dairy farm while creating significant employment opportunities for local communities and supporting the province’s economic development.
Farm Fresh Group Managing Director and Chief Executive Officer Loi Tuan Ee said the company is honoured to invest in Pursat and welcomed the strong support and incentives provided by the Cambodian government.
He added that the investment would not only strengthen Cambodia’s dairy industry but also raise Pursat’s profile across Southeast Asia and internationally.
The project comes as Cambodia seeks to improve its food security following supply disruptions caused by last year’s border conflict with Thailand. Thailand previously supplied more than 76% of Cambodia’s dairy imports, and the disruption led to widespread fresh milk shortages, affecting supermarkets, cafés and restaurants.
With the new facility, Cambodia aims to expand local fresh milk production, reduce dependence on imports and build a more resilient and sustainable dairy supply chain for the future.
