Three Whopping Reasons Why South Dakota Dairy is Booming

Head to the I-29 corridor and it is no surprise that South Dakota continues to hit remarkable milestones in terms of milk and cows.

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(Farm Journal)

Head to the I-29 corridor and it is no surprise that South Dakota continues to hit remarkable milestones in terms of milk and cows. According to the USDA’s National Agricultural Statistics Service, milk production in the state during the month of June reached an impressive 406 million lbs. of milk. This figure marks an 8% increase compared to the previous year, highlighting a significant upward trend in milk yield. The average number of milk cows was reported at 212,000 head, reflecting an increase of 17,000 head over June 2023.

These impressive statistics are especially notable given the broader national context, where many other states are experiencing declines in both milk production and cow numbers. The June 2024 USDA Milk Production Report revealed a noticeable year-over-year decline in milk production across the 24 major States. Specifically, production was 18 billion lbs., marking a 0.7% decline for the month of June in the 24 major States.

With all that said, South Dakota’s growth stands out as a beacon of success in the dairy industry.

Evan Grong, sales manager with Valley Queen, points to three main factors contributing to South Dakota’s remarkable performance in milk production.

“We attribute the current and projected growth in the I-29 region primarily to access to feed production, abundant groundwater, and dairy processing investments,” he says.

Tom Peterson, executive director of South Dakota Dairy Producers, expressed his excitement over the rapid expansion of the state’s dairy industry.

“In the early 2000s, cow numbers in this state were fewer than 80,000 head,” he reports. Now that number is more than two and a half times that. Much of that growth has taken place in the last five years, all with 150 permitted class A farms.

While not in the top ten for milk production, South Dakota is still very well-positioned for growth in both milk production and cow numbers.

Phil Plourd, president of Ever.Ag Insights, shares his sentiments saying that South Dakota, particularly the I-29 corridor, has a promising future. He concurs with Grong, saying water, land, feed and appetite for expanding processing capacity come top of mind as advantages to milk cows in the Coyote State.

“Plus, an animal and business friendly government,” Plourd adds. “It’s hard to think of an area with as many advantages over the near-to-intermediate term.”

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