South Dakota Leads US in Dairy Growth

By Scout Nelson

South Dakota's dairy sector is currently experiencing a remarkable growth spurt. As of January 1, 2025, the state's milk cow population reached 215,000, marking a 117% increase over the last ten years. This growth is not only significant in terms of numbers but also leads the nation, highlighting South Dakota as a pivotal player in the dairy industry.

Governor Larry Rhoden expressed pride in the state's achievements, crediting the hard work of local farmers and ranchers for boosting the economy and establishing South Dakota as a top dairy producer.

"South Dakota is a land of opportunity, and I am proud of all our hardworking farmers and ranchers," said Governor Rhoden. Their dedication has not only strengthened the local economy but has also positioned the state at the forefront of dairy production.

Currently, the state's dairy cows produce approximately 5 billion pounds of milk annually, averaging over 23,000 pounds per cow. Such productivity is supported by South Dakota's ideal conditions for dairy farming, including ample land and strong market demand, as noted by Joe Fiala, the commissioner of the Governor's Office of Economic Development.

The economic impact of the dairy industry in South Dakota is substantial, supporting about 14,000 jobs and generating billions in economic output annually. Tom Peterson, executive director of South Dakota Dairy Producers, emphasized the collaborative growth in the sector. "With strong resources and community support, South Dakota is creating opportunities for dairy farmers and processors to grow together," he stated.

In addition to its current success, the Governor's Office of Economic Development has facilitated significant investment in the sector. Over the past five years, this initiative has resulted in $1.3 billion in capital investment and the creation of nearly 700 new jobs, further cementing dairy farming as a cornerstone of South Dakota's economy.

This concerted effort showcases the state's commitment to agricultural innovation and support for its producers, ensuring the dairy industry's continued prosperity and leadership in the United States.

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