Cairnspring Mills held an opening celebration for its Blue Mountain Mill on Oct. 15 and expects to begin commercial production in November. Once fully operational, the Pendleton facility will increase the Washington company’s annual flour-milling capacity from about 8 million pounds to more than 115 million pounds, co-founder Kevin Morse said.

The project is a partnership with the Confederated Tribes of the Umatilla Indian Reservation, which invested $5 million and leased the Coyote Business Park site for 50 years. It is the tribe’s first equity stake in a private company and its largest public-private partnership to date.

Tribal officials say the venture combines economic development with support for local food systems and the tribe’s agricultural presence in a region where wheat is a major crop. Susan Bower, a business development manager with the tribe’s economic development department, said the partnership could show that companies working with tribal governments can create benefits for the wider region.

The mill comes as wheat growers face higher costs for inputs such as fuel and fertilizer and uncertainty in export markets. More than 90% of Oregon-grown wheat is exported, largely to Asian countries, leaving many farmers exposed to shifts in global trade and demand.

Cairnspring, founded in 2016, already operates a mill in Washington’s Skagit Valley. The company works with farmers to select wheat varieties sought by bakers and pays a premium for grain that meets its requirements. It has sourcing agreements with some Oregon and Washington farmers and is seeking additional supplies for the Pendleton operation, including from growers on the Umatilla Reservation.

Morrow County farmer Keith Morter, who already supplies Cairnspring’s Skagit Valley mill, said a dependable market for his wheat has helped him move from conventional commodity production to regenerative practices. Those approaches can include reducing tillage and reliance on chemical fertilizers and pesticides, with the goal of improving soil health.

Morter said the arrangement gives him greater confidence that the farm can be passed to the next generation. Morse said the company wants to offer farmers an alternative to competing solely in the global commodity market, where growers have limited control over prices.

The company is pitching the mill as a middle ground between small-batch flour producers and the much larger industrial mills. Morse said the new facility could generate more than $22 million annually for Northwest farmers and create more than 22 local living-wage jobs. Those are company projections, and the mill has yet to begin commercial production.

Cairnspring’s premium flour is aimed at customers willing to pay more for products they consider distinctive and locally sourced. The company says expanding its capacity will let it serve that market at a larger scale while buying more wheat directly from regional farms.