Cambodia is set to develop its first large scale fresh milk production and processing facility in Pursat province, with an investment of about US$68 million. The project, known as Farm Fresh Pursat, is expected to strengthen the country’s domestic milk supply, respond to growing consumer demand and reduce Cambodia’s reliance on imported dairy products. The project is being developed in Veal Veng district across approximately 1,000 hectares and will combine international standard dairy farming with a local milk processing plant.
The investment comes after Cambodia experienced serious milk supply disruptions during last year’s border conflict with Thailand. Because Thailand has traditionally supplied more than 76% of Cambodia’s dairy imports, the shortages exposed the country’s dependence on imported fresh milk and accelerated efforts to build stronger domestic production.
Pursat Secures Cambodia’s First Large Scale Dairy Project
On August 5, the Pursat Provincial Administration and Sonavith Co Ltd signed a land lease agreement for the Farm Fresh Pursat project in cooperation with Malaysia’s Farm Fresh Group and Cambodia’s Alpha Group. The agreement marks an important step toward establishing a major domestic dairy production base in Cambodia.
The project will cover about 1,000 hectares in Veal Veng district. Its development will include large scale dairy farms and a milk processing facility designed to strengthen the entire local dairy supply chain. Beyond serving Cambodia’s domestic market, the project is also expected to create the capacity to supply future export markets.
Project Aims to Reduce Cambodia’s Milk Import Dependence
One of the biggest reasons the project matters is Cambodia’s continued dependence on imported dairy products. The country’s milk supply has historically relied heavily on imports, particularly from Thailand, leaving the domestic market vulnerable when cross border trade or supply chains are disrupted.
The situation became especially visible in July 2025, when supermarket shelves were emptied and coffee shops and restaurants struggled to secure fresh milk. Thailand had traditionally accounted for more than 76% of Cambodia’s dairy imports, meaning disruptions to supplies from the neighbouring country quickly affected businesses and consumers.
The new Pursat project is therefore expected to provide a more stable source of locally produced fresh milk. By developing farming, processing and distribution capacity within Cambodia, the investment could help reduce import dependence while creating a stronger foundation for the country’s dairy industry.
Project Expected to Create Jobs and New Economic Opportunities
Pursat Provincial Governor and Provincial Administration Unity Command chairman Khoy Rida described the investment as a major milestone for both Pursat province and Cambodia. He said the project will establish the country’s largest dairy farm and create numerous employment opportunities for local residents.
For Pursat, the investment could also raise the province’s profile as a destination for large scale agricultural and food processing projects. A project of this size has the potential to generate demand for local services, transportation, farming inputs and other supporting businesses as the dairy production chain develops.
Farm Fresh Bhd group managing director and chief executive officer Loi Tuan Ee said the company was pleased to invest in Pursat and welcomed the incentives and support provided by the Cambodian 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.
Farm Fresh Partnership Marks a New Chapter for Cambodia’s Dairy Industry
The Pursat project follows an agreement signed on October 26 during the 47th Asean Summit and Related Summits, when Farm Fresh and Cambodia’s Alpha Group signed a memorandum of understanding to establish the country’s first large scale fresh milk production and processing facility.
The partnership brings together Malaysian dairy expertise and Cambodian investment and local market knowledge. The planned combination of dairy farming and milk processing is also important because it could allow Cambodia to develop more of its dairy value chain domestically rather than depending mainly on imported finished or raw dairy products.
What Does the US$68 Million Project Mean for Cambodia?
The Farm Fresh Pursat investment is more than the construction of a large dairy farm. It represents an attempt to address a weakness in Cambodia’s food supply system that became particularly clear during the 2025 milk shortage.
If successfully implemented, the project could provide a more reliable domestic source of fresh milk, create jobs in Pursat and support businesses connected to agriculture, food processing, logistics and retail. In the longer term, the development of export capacity could also give Cambodia an opportunity to participate more actively in the regional dairy market.
Why Pursat Could Become an Important Dairy Hub?
With around 1,000 hectares dedicated to the project, Pursat has the scale needed to support a major integrated dairy operation. The combination of farms and processing facilities could help create a more connected production chain, from milk production to processing and distribution.
The project also highlights the broader potential of agricultural investment in Cambodia. As consumer demand grows, investments that improve local production and processing capacity could help strengthen food security while creating new opportunities for rural communities and provincial economies.
Conclusion
Cambodia’s planned US$68 million Farm Fresh Pursat project could mark a turning point for the country’s dairy sector. By establishing a large scale dairy farm and local fresh milk processing facility, the investment aims to reduce dependence on imports, strengthen domestic supply and meet rising consumer demand.
For Pursat, the project brings the prospect of jobs, investment and a stronger economic profile. For Cambodia, it offers an opportunity to build a more resilient dairy industry after the supply disruptions of 2025. If the project develops as planned, Pursat could become an important centre for Cambodia’s future fresh milk production and potentially a base for regional exports.
Source: The Star