Cambodia to build US$68M dairy farm

CAMBODIA – Malaysia’s Farm Fresh Group and Cambodia’s Alpha Group, in collaboration with Pursat Provincial Administration and Sonavith Co., Ltd have signed a land lease agreement for the US$68 million dairy farming investment project, Farm Fresh Pursat.

The project aims 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.

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, 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.

Loi Tuan Ee, Director of Farm Fresh Malaysia, 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 Southeast Asia, our investment in Pursat will help raise the province’s profile across Southeast Asia, and on the global stage,” he said.

On October 26, 2026, during the 47th ASEAN Summit and Related Summits, Malaysia’s Farm Fresh Group 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 percent 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.

According to 6Wresearch, the Cambodia Dairy Products Market is projected to grow at a CAGR of 7.2% from 2025-2031.

The milk sector is seeing substantial growth due to increasing health consciousness among consumers, coupled with a growing preference for protein-rich diets.

Furthermore, the expansion of supermarkets and hypermarkets across the country has facilitated easier access to a variety of dairy products, boosting sales.

The growing trend of online shopping is also contributing to market growth, especially among the younger demographic who prefer the convenience of home delivery.

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