The dairy industry in the United States has long been dominated by states like California, Wisconsin, Texas, Idaho, and New York. However, recent data from the US Department of Agriculture reveals a surprising shift in the landscape of dairy production. South Dakota, a state not typically associated with dairy farming, has seen remarkable growth in its dairy cow population in recent years.
In January 2024, the USDA reported that the dairy cow population in South Dakota had reached 208,000, representing a significant 70.5% increase since 2019. This surge in dairy production can be attributed to several factors that set South Dakota apart from more traditional dairy-producing states.
South Dakota Advantages
South Dakota offers a range of advantages for dairy farmers that are not readily available in other states. These advantages include:
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Absence of Challenges: South Dakota lacks the challenges faced by dairy farmers in other states, such as strict manure and effluent regulations, water shortages, and overtime labour rules.
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Good Climate and Feed Availability: The state boasts a favourable climate for growing forage and a good availability of feed, essential for sustaining a thriving dairy industry.
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Low Human Population Density: With a low human population density, South Dakota provides ample room for dairy farms to expand and flourish.
- Infrastructure Support: State leaders in South Dakota have invested in a major highway corridor, I-29, which facilitates the transport of milk and dairy products. This infrastructure support is crucial for the growth of the dairy industry in the region.
The combination of these factors has created a conducive environment for dairy farming in South Dakota, attracting new dairy producers and driving the significant increase in dairy cow numbers.
Partnership for Growth
To foster the growth of the dairy industry in South Dakota, industry stakeholders have collaborated on initiatives to expand both on-farm production and processing capacity. The South Dakota Dairy Producers have played a pivotal role in elevating the need for higher dairy cow numbers while ensuring that production aligns with processing capacity.
Since 2012, the South Dakota Dairy Drive has been instrumental in driving growth in the dairy sector. Activities such as participation in national expos like the World Dairy Expo and World Ag Expo, regional forums like the Dairy Experience Forum, and collaboration with South Dakota State University have all contributed to the expansion and success of the dairy industry in the state.
Processing Expansion
In addition to the growth in dairy production, South Dakota has also witnessed significant expansion in dairy processing capacity. Key players in the industry, including Bel Brands, Agropur, and Valley Queen Cheese, have opened or expanded dairy processing plants in the state.
Valley Queen Cheese, a 95-year-old company founded by Swiss immigrants, completed a major expansion in 2019 and is currently undergoing another expansion set to be completed by January 2025. This expansion will enable the company to accept 50% more milk volume, increase cheese production capacity by 125 million pounds, and add an additional daily milk processing capacity of 3 million pounds.
Looking ahead, Valley Queen Cheese anticipates that approximately 25,000 additional cows will be added to the South Dakota dairy herd by 2026, underscoring the state’s growing prominence in the dairy industry.
In conclusion, while traditional dairy-producing states like California may be facing challenges that hamper growth, South Dakota has emerged as a promising and thriving hub for dairy production. With its favourable climate, infrastructure support, and collaborative initiatives driving growth, South Dakota is poised to continue its upward trajectory in the dairy industry. As the state’s dairy sector expands and evolves, it presents exciting opportunities for dairy farmers, processors, and industry stakeholders alike.
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