Winnipeg, Manitoba
December 12, 2002

Agricore United today announced that it recorded a net loss of $33.8 million in the quarter ended
October 31, 2002, resulting in a net loss of $17.5 million or $0.42 per share for the 12 months ended October 31, 2002. The loss for the quarter represents an increase of $11 million over the pro forma results for the same quarter last year - measured as though the merger had occurred on August 1, 2001.

"The 2001 and 2002 droughts have severely impacted all aspects of the agricultural industry and our company is not immune to the effects," said Brian Hayward, Chief Executive Officer. "Fortunately, cost savings in excess of $90 million achieved as a result of the merger last November as well as general cost containment have cushioned the impact on our bottom line."

Agricore United's merger business plan filed last fall indicated it would achieve $47 million in synergies by July 31, 2004. Actual cash cost reductions captured to the end of October 2002 totaled $67.5 million, an increase of $20 million in the quarter. Coupled with reduced interest costs and lower depreciation and amortization, the cost reductions increase to $92 million. Ongoing consolidation of the company's grain handling network, annualization of synergies already achieved and additional
synergies still to be realized from the merger are expected to further increase these cost savings in the coming months.

Revenues for Crop Production Services, the company's largest business, declined for the quarter and year to date due to the industry-wide negative impacts of the 2002 drought on crop protection product sales and the further negative impacts of unseasonably cold weather on fall fertilizer sales in the most
recent quarter.

The company's 37 per cent market share of grain shipments for the 12 months ended October 31, 2002 was consistent with its share at July 31, 2002 - and the company also managed to maintain its
average margin per tonne over the last 12 months including a modest quarterly increase. However, industry grain shipments as a whole continued to trend downward - declining 24 per cent compared to the 12 months ended October 31, 2001.

Livestock Services benefited from continued growth in its feed manufacturing business with an eight per cent increase in tonnes sold. However, this improvement was overshadowed by the current cyclical downturn in hog prices that negatively impacted commercial hog sales.

"Our focus remains on the basics of managing our business through industry and economic conditions unprecedented in recent times," said Hayward. "We remain committed to improving the company's
operating leverage to the point where we can quickly reap the benefits of the inevitable recovery in the agricultural economy."

Agricore United is one of Canada's leading agri-businesses. The prairie-based company is diversified into sales of crop inputs and services, grain merchandising, livestock production services, and farm business communications. Agricore United's shares are publicly traded on the Toronto Stock Exchange under the symbol "AU".

The full news release is at www.agricoreunited.com