Malaysia’s leading dairy producer, Farm Fresh Group, has signed a memorandum of understanding (MoU) with Cambodia’s Alpha Group to establish a new dairy farm and milk processing factory in Cambodia, marking a major milestone in Farm Fresh’s regional expansion strategy.
The agreement was signed on Sunday in Kuala Lumpur by Loi Tuan Ee, co-founder and CEO of Farm Fresh Group, and Ly Kunthai, Chairman of the Board of Directors of Alpha Group, in the presence of Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia.
The partnership aims to strengthen Cambodia’s domestic milk production capacity and reduce reliance on imports, as the country faces a growing demand for fresh dairy products.
“The partnership is an important step in expanding fresh and raw milk production to meet Cambodia’s rapidly increasing demand for dairy products,” said Ly Kunthai during the signing ceremony.
Farm Fresh Group, Malaysia’s largest dairy company with a herd of approximately 14,000 cows, views this collaboration as a key step towards building a sustainable dairy ecosystem in Cambodia.
Although the investment amount and the location of the new facilities have not been disclosed, the venture aligns with recent bilateral discussions between agricultural officials from both countries. These talks explored opportunities for Malaysian investment in Cambodia’s dairy farming sector.
Currently, Cambodia’s fresh milk production is estimated at just 20,000 litres per day, while national demand has surged to between 90,000 and 100,000 litres per month —particularly following the closure of the Cambodia-Thailand border, which has disrupted imports.
At present, Cambodia has only four major dairy farms—Kiri Sour Farm, Mumu Farm, Russey Trap National Park Farm, and Omer Farm—which collectively produce roughly 17 to 20 percent of domestic demand.
Deputy Prime Minister Sun Chanthol welcomed the investment, noting that the collaboration will contribute significantly to Cambodia’s food security and agricultural modernisation.
“The memorandum of understanding is designed to establish collaboration to expand Farm Fresh Berhad’s business operations and investments in Cambodia related to the production chain of fresh milk products to meet market needs,” Chanthol said.
The partnership is expected to pave the way for technology transfer, job creation, and greater regional cooperation in agriculture between Malaysia and Cambodia.
