BRANDON, SD -
Bell Brands Cheese, one of America's leading cheese producers, will soon open a plant in Brookings.
Over this last week, Governor Dennis Daugaard has been at the World Ag Expo in California promoting the state's dairy industry with high hopes.
He wants to double the number of dairy cattle in South Dakota. He says the state is a very positive climate for California producers to move to.
The state says there are currently around 92,000 dairy cattle in South Dakota. Governor Daugaard and ag leaders would like to see that number double to keep up with cheese and dairy manufactures. But one producer says more cattle could hurt his bottom line.
"We need to be profitable too. And if we supply more milk that meets the demand, our prices get depressed,” Royalwood Farms dairy producer, Gregg Ode, said.
Ode milks around 250 cattle. He says doubling the state dairy herd would flood the market with milk, making it very tough for him to make a profit.
"I mean the only time a dairy farmer is making some, a good profit, is when there is a short supply of dairy products through out the world. And this is a global market now. This isn't a United States market," Ode said
He does say that it is a double-edged sword because at the same time, more cattle would mean more tax revenue for the state and give others in the industry, like the businesses who manufacture the milking equipment, room for expansion. But to Ode, it only brings concern.
"It’s going to be very difficult with the high price of corn and everything that’s out there," Ode said.
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