AGM Statement

Associated British Foods PLC
07 December 2007



CHAIRMAN'S ADDRESS TO AGM - 7th DECEMBER 2007


Good morning Ladies and Gentlemen. I am delighted as your Chairman to welcome
you to the seventy second Annual General Meeting of our company, Associated
British Foods.  It is good to see so many of you here.


It is just past the appointed hour of 11.00 o'clock so apart from a reminder, as
a courtesy to others, to switch off mobile phones we'll get started.


I am joined on the platform by my colleagues on your Board and by our company
secretary, Paul Lister.  Regular attendees amongst you may have spotted a new
face this year and I would like to take a moment to introduce Peter Smith to
you.  A brief CV is on page 29 of the Annual Report.  Peter could you please
stand so that shareholders can identify you.  Peter brings very wide experience
both from his distinguished earlier career in the public accounting profession
and latterly as a director of a variety of businesses.  He is extremely well
qualified to chair ABF's Audit Committee and is also contributing strongly to
Board discussions.


To our formal business then.  There is a quorum present and I therefore formally
open the meeting.  You may find it helpful to follow the proceedings by
referring to the Notice of the Meeting which this year is on separate sheets you
will have received with the Annual Report and Accounts.


In view of the length of the Notice of the Meeting I will, with your permission,
take it as read.


The formal part of our meeting today consists of 10 resolutions which I will put
to the meeting, after each of which I will invite your questions.  Before we get
to that however I would like to make a few remarks.


The Annual Report and Accounts, which you received some weeks ago, includes full
comment on the past year's trading.  I will only mention a few important issues.
When I spoke to you a year ago I said that the previous year had been one of
significant change and one which laid the foundations for strong, sustainable
growth in the year ahead.  The first evidence of this is apparent from the
result for the past year.  Turnover grew by 13% and operating profits by 11%,
while profits net of interest and tax rose by 10%.  Earnings per ABF share grew
less sharply, by 4%, reflecting the Illovo minorities' share in their profits.
The proportion of profits earned by our UK based operations now accounts for
somewhat less than half of the total compared to almost three quarters at the
turn of the century.  The remainder is spread widely across the Americas, Asia
Pacific and Europe, Middle East and Africa.  We are well placed to develop our
businesses in all these regions.


Results for the past year have continued to be affected by sugar regime reform
in Europe.  Profits from this part of our business were some £30m lower than in
the previous year.  This, together with adverse impacts of currency changes on
overseas profits and losses in our UK bakery business, has masked to some extent
the progress made by most of our businesses.


I would like to take a few moments to talk about our sugar businesses.  Two
thirds of our production is outside Europe and that part has good growth
prospects based as it is in countries with rising rates of consumption.  Since
the acquisition of our 51% stake, Illovo has announced several major investments
to expand existing capacity.  Most recent was the decision to invest in the
sugar industry in Mali with a capacity for 200,000 tonnes together with an
ethanol plant and electricity co-generation unit.  The project, which has been
developed in close co-operation with the government of Mali, will also enable
major agricultural expansion providing jobs and income in the surrounding area.


A few months ago British Sugar announced a major investment in the provinces of
North Eastern China.  This is an excellent opportunity to work with growers to
improve radically their agricultural yields.  In addition, our processing skills
will enable much improved production efficiency.  Again, this project has been
developed in close co-operation with local government.  It also will result in a
major contribution to the local economy.


Within Europe and particularly in the UK we have continued to invest in improved
efficiency.  The transitional effects of the changes in the EU sugar regime
continue in the current year.  However, we are confident that there is a sound
future for this business when the changes described in the Annual Report are
fully implemented.  Meanwhile you will have noted our initial investment in
bioethanol, which is now fully operational, and the much larger joint venture
with BP and Dupont which is currently in the design phase.


I hope you will see from these comments that our sugar businesses have some
excellent opportunities.  This short video should give you an idea of the range
and scope of our sugar interests.


Thank you ladies and gentlemen.  That shows you much better than my words the
range of our sugar activities around the world.  However, we have not been idle
in other areas of the group.  In our food activities we have strengthened our
yeast business by expanding capacity and by acquisition.  The addition of the
Patak's brand and assets to our UK grocery businesses was very important.
Linking its excellent reputation in Indian cuisine with our existing Blue Dragon
brand to form our 'World Foods' business gives a strong position in this growing
market.  We have also continued to invest in maintaining and enhancing the
quality of our plants worldwide.


In talking about the growth of our businesses I will finish with a few words
about Primark.  You will remember that a step change in Primark's scale began a
little over two years ago with the purchase of the Littlewoods chain.  With
other new sites, the programme of refitting and opening stores was a major
challenge.  It has been completed on time and on budget.  Primark in the UK now
trades from almost double the space of two years ago.  Some of the openings were
so successful that they received national media coverage.  As a consequence,
Primark is now reckoned to be the second largest clothing retailer in the UK by
volume and the largest by turnover in the important 'value' sector.  Primark is
a major force across the UK.  I am glad to say that there is still scope to
expand our coverage.


While so much attention has been on the UK expansion, I am delighted that growth
elsewhere has been strong.  In Eire, results for Penneys have been outstanding
and a considerable programme of increasing space is in train.  Last month two
new Primark stores opened in Spain.  Their early results, together with those of
the two stores opened in 2006, are very encouraging.  Further stores are
scheduled to open in Spain in the next couple of years, by which time Primark
will have a sizeable presence in this important market.


Listening to me talk about the major investment of recent years, shareholders
are entitled to ask whether we can continue to make the necessary level of
investment to support and grow our businesses.  The answer is a confident 'Yes'.
The group is lightly borrowed for one of its size; cash flow is strong.  There
is ample capacity to continue to back our businesses with substantial investment
where appropriate; and, very importantly, well within the bounds of prudent
financing.


The annual report shows that 85,000 people now work in the ABF group.  I am
conscious that work has a major influence on every employee's life.  As an
employer, the group frequently contributes beyond the contents of the pay
packet.  In many parts of Southern Africa and China for example, the business is
the focal point for the community and also provides services such as health,
education and housing.  Across our businesses much effort goes into training and
development.


I am also aware of the demands our diverse group places on many employees in
terms of travel and exposure to different cultures and working practices.  The
success with which people rise to these challenges is always impressive.  I am
grateful to all our employees for the contribution they have made to the group's
development.


Now let me comment on current year trading.  The continued development of the
group's businesses and the investments we have made will result in further
progress in 2008.  I said in my statement in the annual report that reform of
the European Union sugar regime will again have a large negative effect on
profit in the coming year.  Although there is a greater degree of uncertainty
than normal about general economic conditions, including volatility in some
commodity prices and currencies, we expect that profits in the rest of the group
will show good progress.  Trading so far in the current year has been fully up
to our expectations.


Beyond the current year we expect the revised shape of the EU sugar regime to
bring stability to the European market and the prospect of some profit recovery.
The major capital investment of recent years will support the prospects for
longer term growth in all our businesses.


For further information please contact:


Associated British Foods plc

John Bason, Finance Director

Tel: [phone]

Geoff Lancaster, Head of External Affairs

Tel: [phone]



Citigate Dewe Rogerson

Jonathan Clare, Chris Barrie, Hannah Seward

Tel: [phone]




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