South Dakota's Dairy Industry Experiences Significant Growth and Economic Impact

South Dakota has become the leading state in dairy industry growth in the United States, experiencing a 117% increase in dairy cow population according to the USDA. This growth is driven by major expansions in dairy production facilities such as Bel Brands USA in Brookings, which is doubling its production capacity for mini cheese wheels.

Bel Brands USA's expansion has been supported by collaboration with Governor Noem's team, which facilitated loan opportunities and sales tax reimbursement plans. This is part of a broader trend in the state, with other companies like Agropur in Lake Norton having recently tripled their production capacity. This expansion has injected an additional $1 billion into the local economy, benefiting various businesses and allowing for a 50% reduction in property taxes in some areas, as noted by a local mayor in Bryant, South Dakota.

Despite these positive economic impacts, the dairy industry in South Dakota faces challenges in recruiting and retaining employees. According to Tim den Dulk, a dairy producer and processor, the industry relies heavily on the TN visa program to fill labor needs, but anticipates difficulties in finding sufficient labor over the next five years.

These developments highlight both the rapid growth and the emerging challenges within South Dakota's dairy industry, underscoring the state's significant role in the national dairy sector.