US: South Dakota sees significant dairy production growth

In January 2024, the US Department of Agriculture stated that the dairy cow population in South Dakota had reached 208,000, which is an increase of 70.5% since 2019.

As explained ina recent Dairy Global story, economist Marion Cassagnou predicted at the 2023 Idele conference in Paris that California may slip from being the top dairy-producing state. “California is marked by a decline that began in 2023 [due to] drought, then floods, but also loss of attractiveness and fewer dairy farms,” he said.

It was also noted that the Great Lakes region (including the state of New York) is experiencing labour shortages in its dairy processing sector.

South Dakota advantages

South Dakota has an absence of the challenges faced by dairy farmers in the other states, including overtime labour rules, strict manure and effluent regulation (especially in California) and increasing water shortages. Other advantages include a good availability of feed and a good climate to grow forage, as well as a low human population density (room for more farms).

State leaders have also developed a major highway corridor (I-29), which helps with milk and dairy product transport. At the same time, they have worked hard to recruit new dairy producers, but have also taken another important step.

As the South Dakota Dairy Producers recently explained, the state of South Dakota has elevated the need for higher dairy cow numbers while simultaneously ensuring that production doesn’t outpace processing.

As far back as 2012, the South Dakota Dairy Drive was initiated by dairy processors and producers to grow on-farm production and also processing capacity.

“Activities include a presence at national Expos such as World Dairy Expo and World Ag Expo, participation in regional forums such as the Dairy Experience Forum, and in-state collaboration with South Dakota State University at various events.”

Processing expansion

Bel Brands and Agropur have opened dairy processing plants in South Dakota in recent years and Agropur completed an expansion in 2019. Another large processor named Valley Queen Cheese also completed an expansion in 2019. The company is 95 years old.It was founded in 1929 by two Swiss immigrants.

In 2022, Valley Queen began another expansion that will be complete by January 2025. It will enable the firm to accept 50% more milk volume, with plans to increase cheese production capacity by 125 million pounds and an additional daily milk processing capacity of 3 million pounds.

Looking forward, the company stated that “due to our expansion project, Valley Queen expects approximately 25,000 additional cows will be added [to the South Dakota dairy herd] in 2025 and 2026.”