MID-WEST Milling is tripling its milling capacity to cater for the burgeoning demand in oat products.

The mill, at Nhill, in the west Wimmera, is installing new milling equipment that should lift annual processing capacity from 15,000 tonnes to about 40,000 tonnes.

Nhill resident John McGrath began the operation in 1974 as Lowan Whole Foods before it was sold to Green General Foods in 2004. Mid-West Milling, a subsidiary of Australasian Integrated Commodities, bought the mill from Green General Foods in December 2009 after it had sat idle for a year.

Mid-West Milling managing director Alastair Beaumont said the new milling equipment was being installed to meet export demand for oat products.

Mr Beaumont explained the plant currently exported about 15-20 per cent of its oat products, mostly in 25kg bags for the Indonesian and Taiwanese markets.

The mill produced rolled oats, oaten flour and bran and rice products.