In the heart of Milbank, S.D., Victory Farms stands as a testament to strategic adaptation and unwavering dedication in the U.S. dairy industry. A trifecta of families — Kevin Souza, Dave Nuss, and Peter Orrade — has fostered this flourishing dairy operation. Amid an industry often characterized by fluctuating milk checks and rising costs, Souza and his team are charting a compelling path forward, marked by technological prowess, genetic advancement, a vibrant community spirit and sharp business acumen.
Originally feed consultants hailing from California, these families entered the dairy industry ambitiously and bought an existing farm in 1998. Starting with 1,300 cows, the operation quickly expanded, adapting to the needs and challenges of the evolving dairy landscape. Currently, Victory Farm milks 5,700 mostly straight Jerseys, with plans to expand to 6,200.
Tech-Driven Efficiency: A Farm Where Every Animal is Monitored
Victory Farms has embraced technology as a cornerstone of its operational philosophy. In 2020, the farm implemented the SenseHub collar system with sort gates for its mature cows, significantly enhancing efficiency in identifying cows for breeding and treatment.
“We wanted to find the cows that needed breeding quicker and the cows that needed treating quicker,” Souza explains.
The positive impact was so profound that a few years later they extended this activity monitoring to their calves, placing tags on every animal from birth to mature cow. Souza says this comprehensive monitoring system has yielded remarkable results.
“We were treating less calves,” he states, noting that they now use preventative measures such as rumen boluses for calves, eliminating the need for antibiotics in their youngest stock. This proactive approach has not only reduced human error and treatment costs but also demonstrated a clear return on investment, particularly in improved animal health outcomes. “Our actual treat treatments went down, and death loss went down.”
Nurturing People and Community: The Heart of Victory Farms
Beyond advanced technology, Victory Farms thrives on a deeply ingrained culture of valuing its 48 full-time employees.
“Our motto is, take care of the cows, and they take care of you. And we’re the same way with employees,” Souza emphasizes. With long-term staff, including a herdsman who has been with them for 27 years, the farm provides housing, generous vacation and regular gestures of appreciation like monthly pizzas and Christmas dinners. Souza’s daily presence, greeting shifts, underscores a commitment to acknowledging and supporting his team, recognizing “there’s no way we could do this without them.”
This community-first approach extends beyond the farm gates through a unique 4-H leasing program. Inspired by his wife, Suzanne, an Extension specialist for Big Stone County, Minn., Victory Farms leases dairy calves to 20 local 4-H kids annually. This initiative not only provides invaluable agricultural experience to youth, including many from non-farm backgrounds, but also fosters a positive image of dairy farming.
“It just turned my whole idea around about agriculture,” one former participant shared, highlighting the program’s profound impact.
Strategic Growth and Diversification: Bright Spots Amid Industry Crossroads
Facing the U.S. dairy industry’s current challenges, Victory Farms is strategically pursuing “bright spots” to ensure long-term profitability. While maximizing milk production and components remains a top priority (with the herd averaging 70 lb. of milk at 5% fat and 4% protein), Souza has keenly embraced the lucrative beef-on-dairy market. Through an extensive embryo program, the farm strategically breeds its crossbred herd to beef semen, generating significant revenue from day-old beef-cross calves.
Souza’s goal is to eventually produce all dairy replacements through embryos, allowing more uteruses to be dedicated to beef-on-dairy. This meticulous management of heifer inventory has allowed Victory Farms to reduce its replacement heifer numbers by 1,000 while maintaining herd size, further optimizing costs. The farm’s commitment to genetics, working closely with Select Sires and genomic testing all Jerseys, ensures that only the healthiest and most productive animals contribute to the herd.
“I make bulls to send to Select Sires, to pay for my IVF program, to make better heifers,” Souza says, highlighting his dedication to genetic advancement.
A Sustainable and Optimistic Future
As Victory Farms expands to 6,200 cows, it does so as a closed herd since 2015, prioritizing sustainable, internal growth. Operating in South Dakota, Souza appreciates the “more self-contained” nature of dairying, with reliable local services and effective manure management, turning a potential challenge into a resource that local farmers eagerly request.
Despite the current volatility in milk prices, Souza remains remarkably optimistic about the future of dairy. His strategic investments in technology, his unwavering commitment to his employees and community, and his innovative approach to genetic and market diversification position Victory Farms as a beacon of adaptability and prosperity, demonstrating how a forward-thinking dairy can thrive at the industry’s crossroads.
Your Next Read - Rethinking Labor: 3 Ways to Cut Costs in 2026
