April 10, 2026

Agropur Inc. is making a significant investment in its Lake Norden dairy processing facility.

The company plans to invest $65.3 million to overhaul and refurbish its powder drying system, 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.

The Lake Norden facility produces both cheese and whey products.

The South Dakota Board of Economic Development approved a Reinvestment Payment Program award for Agropur. Under the program, eligible projects may receive a refund of state sales and use tax they pay on their investment after achieving project completion.

The company’s project “will modernize production capabilities and strengthen dairy manufacturing in South Dakota,” according to the Governor’s Office of Economic Development.

“Ag is king in South Dakota. These approvals reflect our commitment to help South Dakota businesses reinvest in our state,” Gov. Larry Rhoden said in a statement. “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 of up to $835,953.

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

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