Sabine Kemper
Editor
Mühle + Mischfutter

Germany’s milling industry has undergone one of the deepest structural transformations in Europe. From tens of thousands of artisanal mills to a handful of high-capacity industrial sites, the sector now balances modernization, consolidation, and tradition — ensuring supply security while adapting to new sustainability and regulatory challenges.

Before industrialization, Germany was rich in wind and water mills. With the arrival of steam engines, electricity, and roller-milling technology, the process of market consolidation began—a development that continues to this day. The result is a highly productive and strongly concentrated sector, dominated by a few very efficient milling companies alongside smaller specialist mills.

At the beginning of the 20th century, there were tens of thousands of artisanal mills across Germany. With the invention of the roller mill, continuous power supply, and the expansion of the railway network, large urban grain mills gained the upper hand. They benefited from economies of scale in energy, labor, and logistics, achieved consistent quality, and gradually displaced smaller operators.

In 1895, there were around 73,000 mills in Germany; this number declined steadily in the following decades. The romantic landscape of diverse local mills gave way to an industry requiring high capital investment, and the number of businesses began to shrink.

The depth of this structural change became particularly evident during the so-called “mill death” after World War II. In 1950, there were about 19,000 mills in Germany; by 1980, only a little over 2,500 were still operating. Today, just over 170 milling companies process more than 1,000 tonnes of grain per year and are therefore included in official statistics.

On average, one mill now supplies around 470,000 people. In southern Germany—especially in Bavaria and Baden-Württemberg—mill density remains higher than the national average: one mill there supplies roughly 265,000 inhabitants, compared to 804,000 in the north.

According to the industry overview of the Association of German Mills (VDM), this regional difference reflects the historically strong bakery culture in the south and the close supply links between farmers, mills, and local crafts. Many smaller mills in southern Germany have survived by adapting early, modernizing, and/or specializing in distinctive flour varieties.

Initially, the classical economies of scale were the main driver of structural change—lower unit costs made possible by the switch to roller mills, enclosed processes, improved grain cleaning, and automation. Larger plants had the advantage of multiplying output per employee.

Today, however, the industry faces new challenges, particularly regarding food safety, environmental regulation, and energy costs. Higher and binding standards (such as HACCP, IFS Food, and traceability) favor companies able to manage testing and documentation efficiently on a large scale.

Since the 1990s, the industrial baking sector has expanded while the number of small artisanal bakeries has steadily declined. Large customers now demand reliable, high-volume batches—again strengthening large milling groups.

Upcoming EU reporting obligations could make the situation even more difficult for small and medium-sized mills, especially through CO₂-related levies. Although milling companies are not directly taxed under these schemes, they are affected indirectly—through customer requirements for low-carbon footprints and rising energy prices. Access to credit could also become problematic if banks begin linking loans to CO₂ performance. Modern milling technology, innovative plansifters, automation, and data capture all require substantial investment—often beyond the means of smaller mills.

According to VDM figures, German mills grind around 9 million tonnes of grain per year, including 7.65 million tonnes of soft wheat and 630,000 tonnes of rye, with spelt (336,000 t) and durum wheat (435,000 t) adding to the total. This results in roughly 6.1 million tonnes of wheat flour and 557,000 tonnes of rye flour.

Germany – Grain Milling and Flour Production

Despite consolidation, the industry remains strongly medium-sized in character. Many mills are family-run and have been handed down through generations. At the same time, major milling groups—such as GoodMills, Bindewald & Gutting Group, Gebr. Engelke, and Hemelter Mühle Dr. Cordesmeyer—hold substantial market shares and supply the baking and food industries.

The ten largest corporate groups together produce more than 6 million tonnes annually at 37 sites. Smaller and mid-sized mills continue to succeed by focusing on regional markets, diversified product portfolios (specialty flours, blends, organic and ancient grains), mill shops, and B2B niches.

In short, Germany may see even fewer milling companies in the future—but it will continue to host a diverse and resilient milling landscape, with a clear division of labor between large industrial producers and mid-sized enterprises. Supply remains secure, diversity endures, and structural change—though slowing—is far from complete.

Key Figures of Germany’s Milling Industry 2024/2025

• Germany currently has 170 flour mills, 
• More than half of all mills (92) are located in the southern regions, followed by the west (39), east (23), and north (16).
• Around eight mills process durum wheat, and 100 mills produce spelt flour.

Production Volumes

• Total grain milled: 9.39 million tonnes, up 1.5% year on year
• Average capacity per mill: 55,253 tonnes
• Total flour production: 7.54 million tonnes

Milling Wheat and Rye (excluding spelt)

• Combined volume: 8.57 million tonnes
• Of this, soft wheat accounts for 93%, 

and rye for 7%.

Spelt and Durum Wheat

• Spelt milling rose sharply by 9.2% to 357,870 tonnes year on year
• Durum wheat processing increased by 4.6% to 463,952 tonnes.

About the author

Sabine Kemper studied economics and worked for ZDF (Zweites Deutsches Fernsehen) in the business department, producing documentaries and reports. Since 2021, she has served as an editor at Verlag Moritz Schäfer, responsible for the trade magazine Mühle + Mischfutter.

Source: Verband Deutscher Mühlen, October 2025
Sources: Association of German Mills (VDM)
Oekolandbau.de / Federal Office for Agriculture and Food (BLE)