CAMBODIA’S first large-scale fresh milk production and processing facility - a US$68mil project in Pursat - is expected to help plug the domestic fresh milk gap and support growing local demand, while raising the province’s profile
The US$68mil dairy farming project is set to be developed in Pursat province, aiming to boost Cambodia’s domestic supply of high-quality fresh milk and meet rising consumer demand in line with a late-October agreement to establish the country’s first large-scale fresh milk production and processing facility.
On Aug 5, Pursat Provincial Administration and Sonavith Co Ltd, in collaboration with Malaysia's Farm Fresh Group and Cambodia's Alpha Group, signed a land lease agreement for the dairy farming investment project, Farm Fresh Pursat.
The Veal Veng district-based project in Pursat province will span approximately 1,000ha. It will focus on establishing international-standard dairy farms and building a local milk processing plant to strengthen Cambodia's dairy production chain, reduce imports and increase the country's capacity to supply both the domestic market and future export markets.
Pursat Province Governor and Provincial Administration Unity Command chairman Khoy Rida said the major investment will establish Cambodia's largest dairy farm in Pursat, creating numerous job opportunities for local residents and marking a historic milestone for both the province and the country.
Farm Fresh Bhd
group managing director and chief executive officer Loi Tuan Ee said the company is pleased to invest in Pursat province and welcomed the incentives and support provided by the government.
“As a leading dairy company in South-East Asia, our investment in Pursat will help raise the province's profile across South-East Asia and on the global stage,” he said.
On Oct 26, during the 47th Asean Summit and Related Summits, Farm Fresh signed a memorandum of understanding with Cambodia's Alpha Group to establish the country's first large-scale fresh milk production and processing facility.
Last year’s border conflict with Thailand sparked a milk supply crisis, with Thailand having traditionally supplied Cambodia with more than 76% of the nation’s dairy imports.
In July 2025, supermarket shelves were emptied, while coffee shops and restaurants struggled to source fresh milk supplies. The shortages accelerated plans to expand domestic fresh milk production.
