Riverview, LLP’s Ambitious Dairy Expansion Plans in North Dakota
Source: DairyNews.today
Riverview, LLP, a Minnesota-based agricultural enterprise, has announced plans to significantly expand its dairy operations by proposing the construction of two large-scale dairy farms in eastern North Dakota. These projects, if approved, will dramatically increase the state’s dairy cow population, potentially quintupling the current number of dairy cows.
Riverview is currently in the permitting process to build a 12,500-head dairy farm in Richland County, near Wahpeton, and a 25,000-head dairy farm in Traill County, near Hillsboro. These projects represent a substantial leap in scale for North Dakota, which currently has only 24 dairy farms with fewer than 10,000 dairy cows in total.
According to North Dakota Agriculture Commissioner Doug Goehring, the state’s dairy industry has faced significant challenges in recent years, leading to a sharp decline in dairy farms. Labor shortages and the closure of local processing facilities have exacerbated these issues, forcing many small dairy farms out of business. Goehring pointed out that Riverview’s massive operations could bring much-needed stability to the industry by providing a reliable supply of milk for processing, thereby justifying the development of new processing facilities.
Economies of Scale and Industry Outlook
Riverview’s strategy hinges on achieving economies of scale, where large-scale operations can distribute costs more effectively and ensure consistent supply to processing plants. This approach is particularly critical as global demand for dairy products, especially cheese and dry milk, is expected to rise significantly. Goehring noted that while traditional markets in Europe and the U.S. are strong, emerging markets are rapidly increasing their consumption of dairy products, creating new opportunities for large producers like Riverview.
Community and Agricultural Integration
Riverview’s expansion is not just about increasing cow numbers; it’s about integrating into the local agricultural economy. The company plans to partner with local farmers for feed production and manure management, creating a symbiotic relationship that benefits both the dairy and the surrounding community. Local farmers stand to gain from stable, local markets for their grain and the availability of manure as a cost-effective fertilizer.
The proposed scale of these dairies raises important questions about biosecurity, environmental impact, and the sustainability of such large operations in North Dakota. Riverview, however, is no stranger to these challenges. The company has a long history of managing large dairy operations and is working closely with the North Dakota Department of Environmental Quality (ND DEQ) to ensure compliance with all necessary regulations. Biosecurity will be a key focus, particularly in a region with relatively few other large animal agriculture operations.
According to North Dakota Agriculture Commissioner Doug Goehring, the state’s dairy industry has faced significant challenges in recent years, leading to a sharp decline in dairy farms. Labor shortages and the closure of local processing facilities have exacerbated these issues, forcing many small dairy farms out of business. Goehring pointed out that Riverview’s massive operations could bring much-needed stability to the industry by providing a reliable supply of milk for processing, thereby justifying the development of new processing facilities.
Economies of Scale and Industry Outlook
Riverview’s strategy hinges on achieving economies of scale, where large-scale operations can distribute costs more effectively and ensure consistent supply to processing plants. This approach is particularly critical as global demand for dairy products, especially cheese and dry milk, is expected to rise significantly. Goehring noted that while traditional markets in Europe and the U.S. are strong, emerging markets are rapidly increasing their consumption of dairy products, creating new opportunities for large producers like Riverview.
Community and Agricultural Integration
Riverview’s expansion is not just about increasing cow numbers; it’s about integrating into the local agricultural economy. The company plans to partner with local farmers for feed production and manure management, creating a symbiotic relationship that benefits both the dairy and the surrounding community. Local farmers stand to gain from stable, local markets for their grain and the availability of manure as a cost-effective fertilizer.
The proposed scale of these dairies raises important questions about biosecurity, environmental impact, and the sustainability of such large operations in North Dakota. Riverview, however, is no stranger to these challenges. The company has a long history of managing large dairy operations and is working closely with the North Dakota Department of Environmental Quality (ND DEQ) to ensure compliance with all necessary regulations. Biosecurity will be a key focus, particularly in a region with relatively few other large animal agriculture operations.
