South Dakota's Dairy Industry Continues to Thrive, Leads Nation in Growth

South Dakota’s dairy industry is thriving.  Our milk cow population reached 215,000 as of Jan. 1, 2025. That means that South Dakota’s dairy cow population has more than doubled in the last 10 years, an increase of 117% according to the U.S. Department of Agriculture (USDA). The increase in the last five years has been 88,000 head, or 69%. South Dakota’s growth in dairy cow inventories leads the nation over both time periods.

“South Dakota is a land of opportunity, and I am proud of all our hardworking farmers and ranchers,” said Governor Larry Rhoden. “Their commitment has strengthened our economy and made South Dakota a leader in dairy production.”

Currently, South Dakota’s dairy cows produce about 5 billion pounds of milk annually, averaging more than 23,000 pounds of milk per cow.

“South Dakota offers an ideal environment for dairy production thanks to our ample land availability and the strong market demand for dairy products,” said Joe Fiala, commissioner of the Governor’s Office of Economic Development (GOED). “Producers are investing here because of our welcoming approach to agriculture.” 

South Dakota’s dairy industry has significant economic impact, supporting an estimated 14,000 jobs throughout South Dakota. This production generates $7.2 billion in output and $2.4 billion in value added each year.

“With strong resources and community support, South Dakota is creating opportunities for dairy farmers and processors to grow together,” said Tom Peterson, executive director of South Dakota Dairy Producers.

Agriculture is South Dakota’s strongest industry. The South Dakota Governor’s Office of Economic Development is committed to agricultural innovation and supporting our ag producers. Over the past five years, GOED helped facilitate 22 project wins across the dairy industry, resulting in 1.3 billion in capital investment and nearly 700 new jobs for South Dakotans.