Farm Fresh invests $68 million in Cambodia’s first large-scale dairy farm
Farm Fresh will invest $68 million in a 1,000-hectare dairy farm and milk-processing facility in Cambodia’s Pursat province. The project is intended to increase domestic fresh milk supply and reduce reliance on imports, more than 76% of which previously came from Thailand.
Large-scale dairy project planned for Pursat
Farm Fresh Berhad will invest $68 million, approximately RM288 million, to develop Cambodia’s first large-scale dairy farm and fresh milk-processing facility, Astro Awani reported. The Farm Fresh Pursat project will be built in Pursat province as Cambodia seeks to expand domestic milk production and reduce its exposure to imported supplies.
The development will cover approximately 1,000 hectares in Veal Veng district. Plans include an international-standard dairy farm and a local milk-processing plant, bringing primary production and processing together at the same site. The report did not disclose the planned herd size, annual milk output, processing capacity or a timetable for construction and commercial operations.
The project is being developed through cooperation between Farm Fresh and Cambodia’s Alpha Group, alongside the Pursat provincial administration and Sonavith Co., Ltd. The parties signed a land lease agreement covering the development. Farm Fresh had previously signed a memorandum of understanding with Alpha Group on 26 October 2025, during the 47th ASEAN Summit and related meetings, to advance the country’s first large-scale fresh milk production and processing facility.
Import dependence exposed supply risks
The investment follows milk supply disruptions in Cambodia linked to the border conflict with Thailand. According to Astro Awani, Thailand had supplied more than 76% of Cambodia’s dairy product imports, leaving the market vulnerable when cross-border supply was interrupted.
In July 2025, some supermarkets reportedly faced empty milk shelves, while food and beverage businesses struggled to obtain fresh milk. The shortages encouraged Cambodia to accelerate efforts to establish a more stable domestic supply base. For retailers, restaurants and beverage manufacturers, local production could shorten supply chains and reduce dependence on a single foreign source, although the project’s eventual impact will depend on its output and operating schedule.
Farm Fresh Managing Director and Chief Executive Officer Loi Tuan Ee said the $68 million project would increase the availability of high-quality fresh milk and help meet growing consumer demand. He also acknowledged the support and incentives provided by the Cambodian government for the investment in Pursat.
Domestic supply comes before possible exports
The immediate objective is to address Cambodia’s shortage of locally produced fresh milk. By combining a dairy farm with domestic processing, the project is intended to strengthen the country’s dairy production chain and improve its ability to serve the local market. Future exports are also being considered, but no target markets, volumes or launch dates were identified.
Pursat Governor Khoy Rida said the investment would create additional employment for local residents and support the development of Cambodia’s dairy sector. He also linked the project to the provincial economy and the government’s efforts to improve national food-supply security.
For Cambodia’s dairy market, the development represents a move from heavy reliance on imported finished products toward integrated local production. Importers and Thai suppliers will retain an important role while domestic capacity is built, especially because no production volumes have yet been announced. Once operational, however, the Pursat complex could give Cambodian buyers an alternative source of fresh milk and provide a base for further investment in processing, cold storage and distribution.
