THE curtain has fallen on the Toowoomba flour mill on Ruthven St after a decision by owner GrainCorp to move full operations to its Tennyson mill in Brisbane.

GrainCorp managing director Alison Watkins confirmed the closure in a half-yearly presentation to stakeholders earlier this week.

A subsidiary company of GrainCorp, Allied Mills has operated the flour mill since 2002.

Allied Mills general manager of corporate services Nikki Town said the closure was inevitable.

"The flour mill stopped producing flour on the afternoon of January 10, 2011," she said.

"The mill has not been operational since due to the extensive flood damage sustained on that tragic afternoon."

Ms Town said the future ownership of the site had not yet been decided.

"We have not exited the site yet and are in the process of weighing up our options in relation to future ownership," she said.

Mayor Paul Antonio said it the closure was the end of an era in Toowoomba.

"I understand the writing has been on the wall for a while now," he said.

"It is sometimes hard to see the positives through the negatives, but this is an opportunity to revitalise that end of Ruthven St.

"Council needs to explore all avenues and welcomes any opportunities that may be presented."