Winnipeg, Canada
June 12, 2003

The Canadian Wheat Board (CWB) today projected a western Canadian wheat and durum
crop of 23.2 million tonnes for the 2003-04 crop year, up from 14.1 million tonnes in 2002-03. The
projection for the 2003-04 barley crop is 12.7 million tonnes, up from 6.2 million tonnes in 2002-03.
This is a return to normal production levels following two devastating years of drought.

"Moisture conditions have improved across most of the Prairies, which is good news for farmers,"
noted Bruce Burnett, Director of Weather and Crop Surveillance, speaking at the CWB's annual
weather and crop conditions briefing. "We are looking at a recovery from the disaster of the last two
years."

However, dryness remains a concern in northern areas of Alberta and Saskatchewan. "There hasn't
been enough precipitation to offset the lingering effects of the drought in the parts of the north that
were the hardest hit," Burnett said.

Besides an analysis of the crop prospects in Western Canada, the CWB's weather and crop
surveillance experts also provided an overview of the international situation. Production is projected
to recover in other major wheat exporting countries that were also affected by drought last year,
including the United States and Australia. However, the next month is critical in terms of determining
how much crop will be seeded in Australia, where drought remains a problem in the east.

Despite these recoveries, the CWB is projecting world wheat production levels to drop slightly from the
564 million tonnes produced in 2002-03 to just under 555 million tonnes in 2003-04. This decrease is
due to a serious drought in Eastern Europe and the countries of the former Soviet Union.

The CWB is also projecting significantly improved durum crops throughout North Africa, the region that
is the main market for western Canadian durum.

The complete weather and crop prospects summary is attached. The Web cast of the weather and
crop conditions briefing is also available on the CWB Web site, www. cwb.ca.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the
world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more
than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.xx