PIERRE, S.D. – South Dakota no longer trails the country in the number of goods it’s exporting to the rest of the world.
But being marked as the country’s 47th prolific exporter into international markets isn’t good enough.
That’s according to Jesse Fonkert, the Mobridge, S.D., native and economic development buff and deputy commissioner of the Governor’s Office of Economic Development, who earlier this year took the reins of South Dakota Trade Association. Until its formation, South Dakota was one of just two states in the country without an actively operating, state-endorsed trade association
“We are proud of the progress but we are not content. South Dakota businesses are proving they can compete anywhere in the world, and now it is about building on that momentum. Every new customer overseas means more jobs, more investment, and better opportunities across the state,” said Fonkert, tasked with piloting the state’s renewed emphasis on getting Mount Rushmore State products across borders and overseas.
His remarks come on the heels of the release of import-export data by the International Trade Administration, which reports that South Dakota moved up two places in a ranking of U.S. states and the level of exporting of goods originating from their jurisdictions. In 2019, South Dakota ranked 49th among U.S. states in goods exports, according to Trade.gov. By 2024, the state had climbed to 47th, with exports valued at about $2.1 billion, accounting for 2.9 percent of South Dakota’s $76 billion gross domestic product (GDP), according to the Office of the U.S. Trade Representative.
That jump coincides with the creation of South Dakota Trade, founded by Fonkert’s predecessor, Luke Lindberg, who stepped down this spring after being tapped by President Donald Trump to be under secretary of agriculture for trade and foreign agricultural affairs in the United States Department of Agriculture.
Funding for the non-profit’s operations comes from a combination of private supporters and state and federal contributions.
Since its launch in 2023, South Dakota Trade has conducted nearly a dozen trade missions overseas and across the southern border to cultivate relationships between South Dakota businesses and foreign buyers interested in their products. The organization also aids businesses navigating the oft-varying regulatory environments in both the U.S. and international markets.
Fonkert said while South Dakota’s footprint in foreign markets is growing, it still isn’t doing enough to showcase its offerings to the rest of the world, evidenced in the state trailing even its Northern Plains and Upper Midwest neighbors.
According to the White House’s U.S. Trade Representative office, Iowa’s goods exports represented 6.7 percent of its GDP in 2024, North Dakota 7.3 percent, Wisconsin 6.4 percent, Minnesota 5.5 percent, Nebraska 4.5 percent and Wyoming 4 percent. Montana, at 3.2 percent, was the closest to South Dakota’s 2.9 percent.
The disparity is also visible at the regional level. The Sioux City metropolitan area, which spans South Dakota, Iowa and Nebraska, exported nearly $1.5 billion in goods in 2023 — nearly three times the $510.9 million exported by the Sioux Falls metro area, according to the Dakota Institute.
Fonkert said recent growth should be recognized but more work remains, and strengthening South Dakota’s presence in global markets will be critical to creating new opportunities for businesses and workers across the state.
“Our neighbors prove what is possible to achieve in South Dakota. To close that gap, we need to be aggressive in taking South Dakota products into new markets, making sure businesses have the tools to navigate trade, and telling our story on the global stage,” he said. “When we do that, we are creating opportunities that keep businesses, families and communities strong.”
Exports as a share of state GDP in 2024
- North Dakota: 7.3 percent
- Iowa: 6.7 percent
- Wisconsin: 6.4 percent
- Minnesota: 5.5 percent
- Nebraska: 4.5 percent
- Wyoming: 4.0 percent
- Montana: 3.2 percent
- South Dakota: 2.9 percent