Weather conditions during Agricore United's fourth quarter slowed the harvest and related grain movement in western Canada and further limited the sale of crop nutrients for the fiscal year.

As a result, for the year ended October 31, 2004, the Company recorded a net loss from continuing operations of $13.7 million ($0.33 basic and diluted loss per share) compared with a loss of $18.3 million in 2003 ($0.43 basic and diluted loss from continuing operations per share). Cash flow provided by operations of $1.01 per share was comparable to the $1.04 per share generated in 2003.

"We've seen a steady improvement in grain volume available for handling which is helping to keep our overall operations on a positive trend," says Brian Hayward, Chief Executive Officer. "But cool and wet growing conditions this spring, summer and fall have had a significant short-term negative impact on crop input sales and services and limited grain movement opportunities."

Agricore United shipped 10 million tonnes of grain in fiscal 2004, representing a market share of 35 percent for the year, consistent with recent experience. Grain margins for the year improved to $21.34 per tonne from $20.87 in fiscal 2003. However, weather conditions contributed to a 17 percent reduction in fertilizer tonnes sold and a seven percent reduction in the sale of crop protection products. Fall fertilizer application sales were the worst in ten years. Notwithstanding the decline in volumes, fertilizer retail margins per tonne were maintained, crop protection product margins improved and seed sales and margins strengthened compared to 2003.

"In the face of the challenges of the past year, we controlled costs, generated positive cash flow from operations and made further improvements in the balance sheet," stated Hayward. "Although weather conditions adversely affected the 2004 results, these same conditions have also set the table for 2005 and provide a basis for greater optimism."

Subsoil moisture levels at the end of October were 80 to 100 percent of capacity in most arable areas of western Canada. The above average crop growth that occurred during 2004, coupled with the limited opportunity for customers to apply fertilizer, significantly reduced soil nutrient levels, improving the likelihood for increased fertilizer demand in 2005. Credit collection on accounts due at the end of October was not adversely affected and actually improved over 2003 while Agricore United Financial's annual credit renewal process has already exceeded last year in terms of both the number of customers and approved aggregate credit limits for 2005.

On December 8, 2004, Statistics Canada estimated total 2004 grain production in western Canada at 51 million tonnes, compared to a ten-year average of about 48 million tonnes and 2003 production of about 46 million tonnes. The grain handling industry typically ships around two-thirds of the crop produced in one year over the subsequent twelve months.

The Company's 45.4 percent weighted average leverage ratio for 2004 improved from 46 percent for the same period last year. The Company reduced total net funded debt at October 31, 2004 to $443 million from $510 million last year.

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.LV".