A new farmer-owned flour mill in Timaru will use grain from Canterbury and supply baked goods such as Griffin's and Coupeland's Bakeries.
The Farmers Mill, the country's only independent grower-owned and operated flour producer, will produce up to 28,000 tonnes of flour a year.
The grower co-operative has invested $10 million in the mill.
Chairman Murray Turley says the plant will use Canterbury grains and its flour will be traceable from paddock to plate.
The Prime Minister was officially opening the mill at 2.30pm on Thursday.