MGP Ingredients, based in Atchison, has agreed to buy wheat flour from CongAgra Mills to use in making protein and starch ingredients.
MGPI has had its own flour mill and supplied its own flour since 1987 when it acquired the Atchison mill from Pillsbury.
The decision to buy raw material from outside came after a year when wheat prices hit record highs and the company was not able to operate the mill efficiently.
Tim Newkirk, president and chief executive officer, said the supply agreement with ConAgra would become effective within the next month or so.
Operations at the MGP mill were suspended on Monday. The move means temporary layoffs for 32 workers and early retirements for an additional 12.