Dairy output in the United States is dropping, with California, Wisconsin, Texas, Idaho, and New York among the leading milk producers. However, South Dakota’s dairy cow herd has grown significantly, reaching 208,000 in January 2024, a 70.5% rise from 2019. Drought, floods, loss of attractiveness, and labor shortages in the Great Lakes area have all contributed to this increase.
South Dakota’s benefits include a lack of problems for dairy producers in other states, such as overtime work laws, severe manure and effluent control, and rising water scarcity. It also boasts a plentiful supply of feed, a suitable environment for forage development, and a low population density. State government have created a significant highway corridor (I-29) for milk and dairy product transportation and are actively recruiting more dairy farms.
Since 2012, the South Dakota Dairy Drive, launched by dairy processors and farmers, has played a key role in increasing on-farm output and processing capacity. Attending national expos, engaging in regional forums, and cooperating with South Dakota State University are some of the activities.
Bel Brands and Agropur have commenced processing expansion, with Agropur finishing it in 2019. Valley Queen Cheese, a 95-year-old processor, has also increased its operations, with plans to add around 25,000 cows to South Dakota’s dairy herd in 2025 and 2026.
