The Government is backing the restoration of domestic flour milling capacity. On Wednesday, Peter Burke, the Minister for Enterprise, Trade and Employment, and Minister for Agriculture, Food and the Marine, Martin Heydon announced an initiative to financially back new flour mills in Ireland.

The Irish Farmers Journal understands that this initiative could reach up to €15m in total, with a maximum of €5m available for each of up to three separate projects. Enterprise Ireland will oversee and administer the initiative and will engage directly with firms considering new or expanded milling operations of scale.

One project, spearheaded by Andrew and Ray Kavanagh of Ballycarney Grain, has already moved toward construction. It envisages sourcing Irish-grown milling wheat, and is contracting growers to that end.

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“This initiative is a powerful display of our intent to become more self-sustaining as an economy," said Peter Burke. "The Irish bakery market is worth an estimated €995m annually with exports of more than €200m. With over 7,000 people employed across 600 businesses, this scheme will reduce costs for these SMEs."

Value-added

Welcoming the announcement, Martin Heydon said "It is Government policy to grow and develop the tillage sector, and I believe in the importance of developing new added-value opportunities to enhance its long-term sustainability and competitiveness.

"With collaboration from industry and support from the marketplace, domestic production of milling wheat can play an important role in providing a new value-added opportunity in the supply chain for Irish tillage farmers. "This scheme supports a commitment in the Programme for Government and a recommendation in the Food Vision Tillage Report to explore opportunities for milling wheat in Ireland."

Wicklow Wexford TD Malcolm Byrne, who has supported Ballycarney Grain's plans for a flour mill in Wexford, said: "From January 2015 to December 2024 Ireland imported over 2.2m tonnes of flour at a cost of over €1bn. That level of reliance represents a dangerous over exposure at a time when global supply chains are becoming increasingly strained. The fundamental function of Government is to ensure there is bread on the table."

Support administered by Enterprise Ireland will be implemented in line with the EU General Block Exemption Regulation (GBER), specifically Article 14 on Regional Investment Aid, and the Irish Regional Aid Map, ensuring full compliance with EU State aid rules.