Grain and Oilseed Milling

The 577 grain and oilseed milling companies in the US produce flours, edible oils, and breakfast cereals from grains and oilseeds. Firms also sell byproducts of the milling process as animal feed or fertilizer. Major product categories are flour milling, rice milling, malt manufacturing, wet corn milling, soybean and other oilseed processing, refining and blending fats and oils, and breakfast cereal manufacturing.

Stricter Food Labeling Requirements

Grain and oilseed manufacturers must comply with a variety of food labeling regulations.

Shifts in Demand Due to Dietary Trends

Grain and oilseed milling companies can face swings in demand due to changing consumer diets and food fads.

Oct 21, 2026 - Smallest All Wheat Crop Since 1970

• US wheat production fell to its lowest level in 56 years in 2026, according to an October report from AgriNews. USDA estimates show that farmers harvested 1.534 billion bushels of wheat, down 23% from 2025. Harvested acreage declined 15%, while average yields fell to 48.1 bushels per acre. Winter wheat production dropped 27%, with hard red winter wheat output plunging 42%. Kansas, the nation's leading wheat-producing state, saw production fall sharply as drought reduced yields. For grain millers, the smaller harvest could tighten domestic wheat supplies, increase competition for certain wheat varieties, and raise raw material and transportation costs. Millers may need to diversify suppliers, adjust purchasing strategies, or pass higher costs along to customers to protect profit margins.
• Growing consumer interest in fiber-rich, less processed foods is fueling demand for premium craft flour, The New York Times reports. The Make America Healthy Again (MAHA) movement and prioritization among health-conscious consumers of clean-label eating, whole grains, digestive wellness, and GLP-1-friendly diets is driving demand for high-extraction, heirloom, and minimally processed flour products, creating new opportunities for grain and oilseed milling companies, especially those producing premium and specialty flours. Premium millers like Cairnspring Mills are expanding production, while bakeries and restaurants are placing greater value on flour quality, flavor, sustainability, and ingredient transparency. The shift is also supporting regenerative farming practices and creating opportunities for mid-sized milling operations. While expansion may require additional investment, growing demand for premium flour gives millers a chance to move beyond commodity products and generate higher margins through differentiated, value-added offerings.
• Americans' rising reliance on GLP‑1 medications for weight loss is reshaping consumer eating patterns, with implications for grain and oilseed milling companies and manufacturers of ultra‑processed foods, Food Processing reports. Households with a GLP‑1 user cut grocery spending 5.5-6% within six months, and long‑term forecasts suggest reduced consumption of soft drinks, baked goods, and salty snacks. As a result, traditional high‑carb, calorie‑dense processed foods, many of which contain milled grains and refined ingredients, face gradual volume pressure. At the same time, GLP‑1 users are seeking higher‑protein, higher‑fiber, nutrient‑dense foods, creating opportunities for millers to supply functional flours, protein‑rich grains, and fiber‑enhanced ingredients. Ultra‑processed food manufacturers will need to reformulate for satiety, clean labels, and metabolic health, while ingredient suppliers invest in protein innovation and specialized supply chains, per FP.
• Producer prices for grain and oilseed milling firms jumped 12.8% in September compared to a year ago, after a modest 0.6% rise in the previous September-to-September annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have trended sharply upward in 2026 due to rising input costs and stronger pricing for some grain- and oilseed-based products. The retail price of breakfast cereal rose 3% year over year in September and 0.9% from August, according to the Labor Department’s September 2026 Consumer Price Index. Meanwhile, employment by the industry shrank 3.4% YoY in August followed by a 1.9% YoY rise in September in average wages at food manufacturers to $24.63 per hour, down slightly from their high in July, BLS data show.

Industry size & Structure

The average grain and oilseed milling company has about 116 employees, operates at 1-2 locations, and generates $216.9 million in annual revenue.

• The grain and oilseed milling industry consists of about 575 companies that employ 66,900 employees and generate $125.1 billion in annual revenue.
• There are about 205 flour milling firms with over 15,650 employees and about 60 rice milling firms with about 5,500 employees.
• There are about 25 malt manufacturers with about 810 employees and about 75 breakfast cereal manufacturers with 11,850 employees.
• There are about 30 wet corn milling companies with about 7,715 employees and about 100 soybean and other oilseed processors with 9,175 employees.
• About 95 fats and oils refining and blending companies have about 8,590 employees
• The grain and oilseed milling industry is highly concentrated - the top 50 companies account for 89% of industry revenue.
• Large US flour milling companies include Ardent Mills, Archer Daniels Midland, Grain Craft, Miller Milling, Bay State Milling Co, and General Mills. Large US producers of edible oils include Archer Daniels Midland, Bunge, Cargill, and CHS.