South Dakota’s dairy industry is experiencing significant growth, with Bel Brands USA helping lead the charge through a major expansion of its Brookings facility. The development underscores South Dakota’s status as one of the fastest-growing dairy states in the U.S.
Bel Brands is set to double its production capacity with a 100,000-square-foot addition at its plant. This expansion is not just about boosting output; it also promises job creation and increased demand for dairy farming. Jacob Anderson, plant director, says the expansion will require about 650,000 pounds of additional milk daily, with the hiring of 160 new employees for the Brookings workforce anticipated.
The Governor’s Office of Economic Development is supporting the project with a $2.57 million grant. This ties into broader state initiatives focused on spurring rural job creation and enhancing value-added agriculture.
A Leader in Dairy Growth
South Dakota has seen its dairy cow population more than double over the past decade, marking a 117% increase, according to the USDA. Tom Peterson, executive director for the South Dakota Dairy Producers, says the growth is a result of strategic planning and collaboration among stakeholders. The surge is closely tied to the expansion of processing facilities, fueling increased demand for dairy cows.
In the last five years alone the number of dairy cows has surged by 88,000, or 69%, positioning South Dakota as a national leader in dairy cow inventory growth.
“Leaders and stakeholders came together to develop a plan not only to ensure dairy survived in South Dakota, but with aspirations of creating a dairy destination for the state,” Peterson says.
In economic terms, South Dakota’s dairy industry generates $1.1 billion in wages and contributes significantly to both federal and state tax revenues. The sector supports 15,000 jobs, underscoring its integral role in the state’s economy.
Driving Factors and Future Outlook
Phil Plourd, president of Ever.Ag Insights, credits South Dakota’s growth to its favorable agricultural conditions, including access to water and feed. The state offers a business-friendly environment conducive to farming success.
“All things considered, it’s an easy place to do business with a lot of people that have ‘win-win’ attitudes,” he says. “That bodes well for future investment. Thinking about the future in other places, it’s fair to wonder how things measure up in the ‘easy’ department. The regulatory and cost environment in California, for example, doesn’t seem favorable. States such as Wisconsin are somewhere in the middle.”
South Dakota Gov. Larry Rhoden says the Bel Brands expansion is emblematic of the type of development the state aims to support, with projects like these reinforcing agriculture’s key role in the state’s economy and promising continued prosperity in the dairy industry.
As construction begins on Bel Brands’ expansion, and as milk demand rises, the investment marks both a milestone in strategic planning and a catalyst for continued growth. While the recent rapid growth may soon stabilize, optimism persists within South Dakota’s dairy industry. As Peterson says the industry expects “solid, balanced growth into the future.”
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