Agricore United saw improved grain handling in the first quarter of 2004 as a result of a better growing season in 2003. The company’s grain shipments for the three months ended January 31, 2004 increased by 53 percent over the same period last year. Agricore United’s net loss of $12.7 million or $0.31 per share for the first quarter of 2004 improved by $6.9 million from a net loss of $19.6 million or $0.46 per share for the same quarter last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by $8.8 million over the $1.9 million earned for the quarter last year – almost entirely related to higher gross profits from significantly increased grain shipments. However, even though industry grain shipments in the past quarter increased by 63 percent over the last year, they still only reached about 80 percent of pre-drought levels.

“As we expected at the end of the 2003 fiscal year, grain handling picked up significantly despite a slower than expected start to the Canadian Wheat Board’s export program and the outlook for grain movement through the summer is bullish,” says Brian Hayward, Chief Executive Officer. “Even with higher grain shipments and sustained sales activity for Crop Production Services, our operating, general and administrative costs remained flat in the quarter compared to last year.” Hayward notes that while crop production services and grain handling are improving, the same cannot be said for the livestock industry and the potential impact on the company’s relatively smaller livestock feed business.

“The livestock industry in Canada, especially western Canada, continues to be hammered by import restrictions and currency fluctuations,” says Hayward. The western Canadian livestock industry’s prospects and the impact on producer purchasing power remain uncertain. Import restrictions imposed by the United States and other countries as a result of BSE concerns continue to negatively impact the beef industry. In addition, hog producers may continue to suffer margin erosion as the Canadian dollar strengthens against the US dollar and the cost of certain feed ingredients remains high.

Nevertheless, the company experienced its third consecutive quarter of improved earnings and realized a net profit of $4.6 million for the twelve months ended January 31, 2004 – the first profit for any trailing twelve month period since the impact of the first drought in 2001.

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 financial markets. Agricore United’s shares are publicly traded on the Toronto Stock Exchange under the symbol “AU”.