Cambodia is investing in its first large-scale dairy operation as the country seeks to strengthen fresh milk production and reduce import dependence, eDairyNews reports.
The US$68 million investment will be developed in Veal Veng district, Pursat province, where around 1,000 hectares have been allocated for an integrated operation combining commercial milk production with local processing.
The Farm Fresh Pursat project
Known as Farm Fresh Pursat, the project was formally advanced on 5 August, 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.
It will establish dairy farms built to international standards alongside a milk processing facility to strengthen Cambodia’s dairy value chain from production through processing, aiming to boost high-quality fresh milk supply, cut reliance on imports and eventually serve export markets.
Provincial Governor Khoy Rida called it a historic milestone that will create jobs and become the country’s largest dairy farm, while Farm Fresh Bhd group MD and CEO Loi Tuan Ee welcomed the authorities’ support.
The initiative builds on an MoU signed in October at the 47th ASEAN Summit.
Shortages after the Thailand conflict
The investment follows significant supply disruptions that exposed Cambodia’s dependence on imported fresh milk.
After last year’s border conflict with Thailand — which traditionally supplied more than 76% of the country’s dairy imports — Cambodia faced a milk shortage, and in July 2025 supermarket shelves were left without fresh milk while cafés and restaurants struggled for supplies.
Those disruptions accelerated efforts to expand domestic production, reflecting a broader trend among developing dairy markets: strengthening local milk production, expanding processing and reducing exposure to international supply shocks.
Source: eDairyNews
