P&H Hamilton increases capacity in growing demand for flour

The Hamilton facility of P&H Milling Group is expanding for the second time in four years in efforts to meet the bakery industry’s growing demand for flour.

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Why it matters: In addition to robust domestic demand, Ontario’s soft red wheat is gaining recognition from international customers.

“It’s definitely a positive development to see more value-added processing in the province, especially for wheat,” said Dana Dickerson, Grain Farmers of Ontario marketing development and sustainability manager.

“It’s in line with the development we’ve had for the soft red winter wheat crop, which has really been scaling in terms of quantity and quality.”

The expansion will see two storage silos developed to handle soymeal, distillers dried grains and wheat. Construction of a third flour mill is slated to begin in March.

Dickerson said the P&H Hamilton terminal is an excellent example of Ontario’s ideal position, with a significant consumer base, trading infrastructure and ability to disseminate food ingredients to consumers and for export.

“We are not just expanding our infrastructure; we are investing in the future of Canadian agriculture and the baking industry,” said John Heimbecker, CEO of P&H Milling Group, in a press release.

“This strategic move reaffirms our dedication to meeting the needs of both our valued agricultural partners and our business partners.”

When the Hamilton flour mill began production in 2017, it was the first new mill in Ontario in 75 years. The company doubled its capacity in 2020 with a second mill and more storage to receive and process
wheat.

The expansion aligns with the company’s vision to contribute to the food industry, support local farmers, and provide customers with a sustainable and resilient supply chain with innovative, state-of-the-art technology and sustainable practices, the company said in the release.

“I think it’ll be another diversification option for (Ontario grain) farmers that will help them manage risk and gain value,” said Dickerson. “We’d love to see continued investment across all of our crops in the province in this kind of way going forward.”

A P&H representative said the expansion will be operational by late 2025 and serve the grain and milling businesses across the company’s network of elevators and mills in Ontario and Western Canada.