UK Joint Venture with Cargill

RNS Number:2027G
Associated British Foods PLC
09 December 2004



9 December 2004



                      ABF in UK Joint Venture with Cargill


Associated British Foods plc ("ABF"), the international food, ingredients and
retail group, today announced its intention, subject to regulatory approval, to
form a joint venture arable business in the UK between its arable business,
Allied Grain, and Banks Cargill Agriculture ("BCA"), a wholly-owned subsidiary
of Cargill, Inc. The joint venture, which will be 50% owned by each partner,
will trade as Frontier.


Allied Grain is a major purchaser and supplier of cereals and oilseeds in the UK
and is also a leading supplier of seed and fertiliser to the UK farming
community.


Completion is expected to take place at the end of the first quarter of 2005.


The sales for Allied Grain in the year to 18 September 2004 were #331 million of
which #108 million were sales to other ABF businesses.  The relevant sales by
BCA for the year to 31 May 2004 were #483 million.   ABF will account for
Frontier as a joint venture in its consolidated accounts and the following note
outlines the financial effect.


Commenting on the announcement, ABF Finance Director, John Bason said, " The
creation of Frontier signals the commitment of both partners in this joint
venture to provide a comprehensive range of products and services to its farm
and food industry customers spanning the whole of the country".



For further information please contact:


Associated British Foods


John Bason                                        Tel: +44 (0)207 589 6363
Finance Director


Geoff Lancaster                                   Tel: 07860 562659
Head of External Affairs                   



Citigate Dewe Rogerson                            Tel: +44 (0)207 638 9571
Jonathan Clare / Chris Barrie / Sara Batchelor



Note 1

Financial effect on the consolidated profit and loss account for ABF.


                                           As reported   Less Allied Grain     Add share of             Pro-forma
                                     18 September 2004                  #m    Joint Venture     18 September 2004
                                                    #m                                   #m                    #m

Turnover of the group including                   5181               (223)              407                  5365
its share of joint ventures


Less share of turnover of joint                   (16)                  -             (407)                 (423)
ventures

                                                  ____                ____             ____                  ____

Group turnover                                    5165               (223)              -                    4942





There will not be a material effect on ABF profit in 2005.










                      This information is provided by RNS
            The company news service from the London Stock Exchange
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