Dairy, cheese factories are critical to South Dakota’s economy

Valley Queen Cheese in Milbank introduced not too long ago that it plans to spend $195 million in a three-year enlargement that gives a serious financial enhance to northeastern South Dakota.

Mixed with a latest $250 million enlargement by Agropur at its cheese plant in Lake Norden, South Dakota now could be a serious participant within the nationwide cheese market.

Set for groundbreaking in late Could, Valley Queen’s expanded plant will probably be operational by January 2025. The undertaking will permit the corporate to supply one other 125 million kilos of cheese yearly, bringing whole manufacturing as much as almost 325 million kilos.

Valley Queen stated its current operation requires milk from 82,000 cows from 42 farms inside 90 miles of Milbank.

The corporate plans to rent 140 staff over three years to completely workers the expanded operation, a Valley Queen information launch reads.

“Along with a rising workforce, the undertaking may also assist appreciable development in dairy alongside the I-29 hall. An estimated 30,000 cows will probably be added to the area over the following three years throughout current herds and a few but to be established,” per the discharge.

When full, Valley Queen will make use of about 440 folks.

Greater than 400 folks are also working at Agropur’s cheese manufacturing unit in Lake Norden. Barely bigger than the expanded Valley Queen will probably be, Agropur’s enlargement tripled its capability to about 365 million kilos of cheese and one other 180 million kilos of whey powder. That enlargement required the milk output from about 85,000 extra cows.

Finding almost 115,000 extra cows within the Interstate 29 hall can have a serious financial influence on the complete area. Agropur’s enlargement was estimated to have a $1 billion financial influence.

Already Lake Norden is seeing the advantages. A number of new condo buildings have been constructed, and a brand new three-story constructing housing flats, workplaces and retail goes up in town’s Important Road.

It’s the kind of growth hardly ever seen in small cities in South Dakota, which principally are dropping residents. In lower than 10 years, Lake Norden has added almost 60 residents. A latest housing research confirmed that the city’s median revenue doubled from $31,000 to $62,000 in 2018.

Agropur says its staff arrive every day from 30 completely different communities. Lower than 10 minutes west towards Bryant, Riverview opened the 9,500-head Garfield Dairy, the biggest single-site dairy farm in South Dakota.

Drumgoon Dairy, which began with 1,400 cows close to Lake Poinsett, now has grown to five,500.

Valley Queen’s enlargement is welcome information in Milbank, which has misplaced inhabitants throughout the previous 20 years. The enlargement will reignite the town’s actual property market as demand for extra housing will increase, in addition to assist business providers.

Each Valley Queen and Agropur would require extra dairies to be positioned within the area. Presently, Minnehaha, Grant, Hamlin and Brookings counties host probably the most dairies. Entry to transportation is necessary.

Constructing a brand new 5,000-head dairy generates about $40 million in gross sales exercise. Working that facility helps an estimated 125 jobs yearly, in response to a report ready for the South Dakota Division of Agriculture.

The equal of six such services is wanted to assist Valley Queen’s enlargement. Correspondingly the demand for feed, forage and different assist services will drive job development.

Whereas the expansions are excellent news, the dearth of space housing and staff will probably be an issue. Each cheese factories already battle to fill open jobs and dairy farms creatively discover employees. The development business, struggling to maintain tempo, faces employee shortages for laborers, expert carpenters, concrete, plumbing and electrical.

The answer appears apparent – make it potential for immigrants to dwell and work legally within the nation. It should be the highest precedence for our congressional delegation. Personal business is doing its half to construct a stronger economic system, however standing in the way in which are politicians extra involved in self preservation than fixing issues.

In the event that they did greater than merely present up for groundbreaking ceremonies, extra folks would have jobs, homes and higher futures and extra small cities can be rising.

Fortuitously, there are firms like Valley Queen and Agropur keen to make rural South Dakota stronger.

Brad Johnson is a Watertown journalist and businessman who’s lively in state and native affairs.