Ireland moves to rebuild flour milling capacity with US$ 5.5M support scheme

IRELAND – The Irish Government has announced a new financial initiative aimed at restoring industrial-scale flour milling capacity in the country, in a move designed to strengthen supply chains, support tillage farmers and improve national food security.

Under the new scheme, Enterprise Ireland will oversee and administer support for up to four projects, with total subvention potentially reaching €5 million (US$5.45 million).

The Government described the funding as a significant commercial incentive intended to help re-establish scaled milling operations.

Ireland currently has only one industrial-scale flour mill, located in Portarlington and operated by Odlums, which is owned by Valeo Foods. In Northern Ireland, two mills remain in operation: James Neill’s Flour Ltd and Andrews Flour.

Head of Food at Enterprise Ireland, Tom Cusack, said the initial plan is to support three or four mills.

He highlighted the strategic importance of the bakery sector, which comprises more than 700 businesses employing 8,000 people and generating over €1 billion (US$1.09 billion) in revenues, alongside a sizeable export trade.

“This initiative is a powerful display of our intent to become more self-sustaining as an economy and will improve the competitiveness within Ireland’s food and drink sector. The Irish bakery market is worth an estimated €995 million annually, with exports of more than €200 million,” said Peter Burke, Minister for Enterprise, Tourism and Employment.

Minister for Agriculture Martin Heydon added that expanding domestic milling would align with policy to grow the tillage sector and create added-value opportunities for farmers.

Reducing import dependence

Ireland currently imports approximately 240,000 tonnes of flour annually, with more than half sourced from the UK.

The Government sees domestic milling expansion as critical to reducing reliance on imports and insulating the sector from volatility in global commodity markets.

The initiative forms part of broader ambitions under the Food Vision Tillage Report, which identified opportunities to expand milling wheat production.

The absence of local flour processors has been cited as a key constraint on farmers’ willingness to invest in wheat cultivation, particularly given exposure to world market pricing.

Mr Cusack noted that once milling capacity is rebuilt, there could be scope to add two to three more mills based on existing Irish market demand. Particular interest is expected from growers in the south-east, a traditional tillage region.

Industry-led momentum

Bakery chain Bread 41, based in Dublin and Wicklow, has expressed interest in sourcing more Irish-grown wheat. CEO Eoin Cluskey is exploring a milling project in Clondalkin, Dublin.

“We want to work with a small cohort of growers and producers,” he said.

He explained that limited nearby milling capacity reduces incentives for farmers to grow wheat due to additional cleaning and processing requirements. His longer-term vision is a field-to-mill domestic supply chain structured around a co-operative model.

“It is to get a co-op of growers to come together to grow the wheat for us, to give us the wheat, and we’ll take care of the milling, and that will come through Bread 41,” he said.

He added that with all our breads, currently, the industry uses such a small percentage of Irish wheat, and we hope over next couple years to grow that in small steps.

“There’s no point me saying next year we’re gonna have 100% Irish wheat, because we’re quite a big bakery, and we don’t want to just strangle the farmers. We want the farmers to be able to grow and a long-term relationship is much better,” he explained.

Strengthening the value chain

The Irish baking market expanded during the Covid-19 pandemic, as demand for bread and flour surged amid increased home baking. The Government believes that rebuilding milling infrastructure will reinforce supply chain resilience and support the sector, now valued at €1.2 billion (US$1.31 billion).

Minister Heydon emphasized that value addition is essential for the country’s 120,000 farm families, stating that closer collaboration between industry and growers is necessary to secure sustainable returns.

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