Winnipeg, Manitoba
February 11, 2002

As the agricultural mindset shifts from pushing supplies to growing what end users want, identity preserved (IP) contracts are becoming popular with both growers and end users. In western Canada, Agricore United is the industry leader in IP cropping options, offering malt barley, wheat, Linola, and
specialty oil canola contracts.

An IP variety is segregated from seed to end-use processing in order to maintain strict quality control. While contracts require growers to use specific seed varieties and sell production back to the contractor, this can provide several marketing advantages compared to non-contracted crops.

"IP contracting allows us to match acreage with end use demand so we can pull the supply through the system as it's needed," says Al Morris, senior merchant for malt barley with Agricore United. "Therefore, we only offer contracts on what we know we can sell. This means growers have a guaranteed market for their crop as long as it meets our customer's quality standards."

Through its Proven Seed division, Agricore United is the only company with access to seed for all 12 varieties recommended by the Malting Barley Industry Group. "With the complete line up we can now offer IP contracting opportunities across the prairies," says Bruce Harrison, product and sales manager with Proven Seed.

"Access to all varieties also allows us to make unbiased variety recommendations based on agronomic performance and market opportunities to maximize returns for growers," he adds. "Contracting the right variety for your farm conditions and location is the best way to ensure the crop gets into the malt pool and moved to market quickly."

Furthermore, Harrison notes that Agricore United has a strong incentive to move the product to market quickly. "For growers under contract, we guarantee that 50% of selected barley will move by January 31, 2003," he explains. "If it doesn't, we'll match Canadian Wheat Board (CWB) storage charges on the portion of the 50% that doesn't move."

As a company specializing in both grain and crop inputs, Agricore United builds relationships with both end-use customers and breeders. With a deep understanding of growers needs, Proven Seed can work with the best breeders in the world to develop new varieties that deliver agronomic advantages for growers while meeting end-user needs.

"Customers are excited about this focus on IP crops and the potential to develop crops with special characteristics that meet their quality standards," concludes Morris. "In today's marketplace, it's imperative that we be proactive in developing new market opportunities for our growers while adding to their bottom line. Agricore United is the pipeline that brings growers and end users together and it's a winning combination for all."

Agricore United is western Canada's leading agri-business. 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 "UGG".