Winnipeg, Canada
December 17,  2001

Agricore United announced today that it has completed its treasury and secondary offering of 13 million limited voting common shares at a price of $8.00 per share. The treasury offering consists of approximately 6.7 million shares for total gross proceeds to Agricore United of approximately $53.7 million. Archer Daniels Midland Company (ADM) purchased approximately 1.7 million of the 6.7 million share treasury offering in order to maintain its approximate 19% interest in the Company.

The secondary offering of approximately 6.3 million shares relates to the assisted sales program established by the Company to assist the former shareholders and equity members of Agricore Cooperative Ltd. to sell in an orderly manner limited voting common shares they received in connection with the recent merger transaction involving United Grain Growers Limited and Agricore.

Agricore United intends to use the net proceeds from the treasury offering to reduce outstanding indebtedness. Proceeds from the secondary offering will be paid to the former shareholders and equity members of Agricore participating in the assisted sales program.

The offering was underwritten by a syndicate of underwriters led by Scotia Capital Inc. and National Bank Financial Inc., and including CIBC World Markets Inc., RBC Dominion Securities Inc., HSBC Securities (Canada) Inc., Pollitt & Co. Inc. and Wellington West Capital Inc. Agricore United has granted the underwriters an over-allotment option to purchase up to an additional 1,006,403 limited voting common shares to cover over-allotments, if any, until January 16, 2002.

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 "UGG".

Company news release
N4055