UK Flour Milling Economic Impact Report
Flour milling in the United Kingdom (UK) is an essential sector, underpinning UK food security, food safety and a thriving food industry.
The nation is self-sufficient in flour production and a study by Policy Points on the economic impact of the flour milling industry found that wheat flour milling is one of the most productive industries in the UK.
Milling’s gross economic value added per employee of £141,000, is more than double the £64,000 GVA for the economy overall. This productivity is sustained by innovation, allied to substantial and ongoing investment of more than £250 million in the last decade alone in new mills and adoption of new technologies at existing mills.
The key findings from the study are:
-
£2 billion generated in annual turnover
-
£700 million created in value add to the economy
-
9,000 people employed (direct and indirect)
-
£270 million delivered in tax to the exchequer (direct and indirect)
Flour millers are the bridge in production between farmers and food manufacturers and need a supportive policy environment in order to grow its economic impact. We are a major customer of UK farmers, buying around a third of the UK wheat harvest every year.
Key in the policy arena are support for:
-
Food security - retaining the most productive agricultural land for growing high quality milling wheat.
-
International competitiveness - ensuring the needs of the flour industry are considered when renegotiating free trade deals.
-
Innovation - ensuring a pro-innovation business environment, specifically a tax system that supports research and development (R&D) which is key to long term food security and lower carbon intensity
-
The ongoing energy transition – continuing policies which ensure that industry is not unduly burdened with higher energy costs as the system becomes progressively greener.
-
Training – allowing apprenticeship levy contributions to fund millers’ substantial and ongoing investment in training and developing the workforce of the future
