PIERRE, S.D. – The South Dakota Board of Economic Development approved a Reinvestment Payment Program award for Agropur Inc. Under this program, eligible projects may receive a refund of state sales and use tax they pay on their investment, after achieving project completion. This program provides key support for a major reinvestment project that will modernize production capabilities and strengthen dairy manufacturing in South Dakota.

“Ag is king in South Dakota. These approvals reflect our commitment to help South Dakota businesses reinvest in our state,” said Governor Larry Rhoden. “By encouraging reinvestment and innovation, we’re strengthening key industries and supporting long-term economic growth.”

The board approved a Reinvestment Payment Program award for Agropur Inc. of up to $835,953. Agropur is investing approximately $65.3 million to overhaul and refurbish the powder drying system in their Lake Norden facility, including replacing key equipment, expanding product offerings, and installing equipment to improve efficiency. The upgrades will restore powder production and enable manufacturing of new whey products.

Upon completion, annual powder output is expected to increase by approximately 20 million pounds.

“When companies reinvest in South Dakota, it strengthens our workforce and supports long-term economic opportunity,” said GOED Commissioner Bill Even. “Projects like this help existing employers remain competitive and continue growing.”

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