PENDLETON — Tony Flagg’s career with Pendleton Flour Mills began as vice president of grain operations in 1983. He was instrumental in developing the grain elevator at Mission for the Confederated Tribes of the Umatilla Indian Reservation.

“I ran grain operations at Pendleton Flour Mills until I merged and acquired myself out of a job in 2003,” he said.

Pendleton Flour Mills and its elevators partnered with other companies to form Grain Craft in 2014. Northwest Grain Growers, Walla Walla, assumed Grain Craft’s lease on the Mission elevator from the tribes in June 2016. Flagg moved back to Pendleton from retirement in Florida on the Fourth of July this year.

“The fire is quite a tragedy,” he said. “The business has been around for 112 years.”

On Wednesday, Aug. 10, fire tore through the mill. Fire departments around the region responded to help Pendleton Fire Department take on the blaze. There were no reports of injuries, but Pendleton Fire Assistant Chief Tony Pierotti reported silos were at full capacity of finished grain, so the fire fuel load was extreme.

Flagg assessed the impact of the fire on local businesses. He said he expects more of a negative effect on grain growers than on truckers.

“If growers can’t sell as much grain locally, it might actually help truckers,” he said. “They’ll get more long hauls to the river, and fewer short hauls to Pendleton and Mission.”

Local growers, however, are likely to be hurt by the disaster.

“Short-term, there should be a negative impact for growers,” Flagg said. “They had three main market alternatives before the fire: United Grain (Corp.), Northwest Grain Growers and Pendleton Flour Mills (now Grain Craft). Three made for a more competitive market. Eliminate one, and competition is reduced. Pendleton Flour Mills offered a good price, but smaller volume than the export buyers.”

Flagg noted this year’s crop already is big.

“It was a challenge to find a home for physical storage even before the fire,” he said.

Flagg pioneered ground storage as president of United Grain, which exports to Asian markets.

Grain Craft, the largest independent milling company in the U.S., on June 21 announced its parent company entered into a deal for Redwood Holdings of Baltimore to acquire Grain Craft. Terms of the transaction were not disclosed, bakingbusiness.com reported.

Redwood Holdings has invested in longstanding, family-owned businesses across a range of industries. Grain Craft will continue to operate as an independent business following the transaction, the company reported.

The nation’s third-largest flour-milling company, Grain Craft operates 13 flour mills in the U.S. The company’s headquarters is in Chattanooga, Tennessee, with a satellite office in Overland Park, Kansas. In October 2021, the company opened a new laboratory facility in the Kansas Wheat Innovation Center in Manhattan.

Grain Craft was established in May 2014 after Milner Milling Co. and its partner Pendleton Flour Mills acquired Cereal Food Processors Inc., Mission Woods, Kansas, bringing together three of the most prominent independent milling companies in the country. G&L Holdings, a family company, owned Grain Craft.

The sale closed Aug. 2.

Pete Frederick, president of Grain Craft, issued a statement Aug. 11.

“Yesterday a fire caused substantial damage to our flour mill in Pendleton,” he wrote. “First and foremost, we are beyond grateful that no one was injured. The blaze required several hours and many teams of responders to bring it under control. While the situation is still active, we are working to fully understand the cause and circumstances.

“We would like to offer our sincere gratitude to everyone from the Pendleton Fire Department, Pendleton Police Department, many surrounding fire departments, public works and all first responders who were on the scene yesterday and throughout the night. Thank you for your service and dedication to the safety of the Pendleton community.

“We also want to recognize the impact this fire has had on our neighbors throughout the town and want to thank you for your patience and support as the fire was cleared. We are truly grateful to be surrounded by such a strong and supportive community. Our Grain Craft family appreciates your patience as we work through this unfortunate loss.

“We have been in touch with all our Pendleton mill team members to discuss areas of support in the coming weeks.

“The Pendleton flour mill began operation more than 100 years ago, and it was not only an important component in providing our customers flour, but it was also a significant piece of history for the city of Pendleton and for the milling industry. All of us at Grain Craft are heartbroken by the events of yesterday.”