UK sugar quota update

Associated British Foods PLC
06 February 2008

                          Associated British Foods plc

       Confirmation of permanent renunciation of 13.5% of UK sugar quota

                                by British Sugar





For immediate release                                            6 February 2008


Associated British Foods plc ('ABF'), the international food, ingredients and
retail group, announces that the application by British Sugar to renounce
permanently 165,000 tonnes of UK sugar production from October 2008 has been
accepted by the Rural Payments Agency.  This is 13.5% of the UK national quota.
The total for the renunciation of permanent quota across the EU is expected to
be announced by the European Commission in the coming weeks.



The compensation will be €93m (£69m) payable to British Sugar in two instalments
of €31m by June 2009 and €62m by February 2010.  Payment is subject to the
normal audit processes of the Commission.  As expected there will be relief from
the restructuring levy on the renounced quota in the 2007/8 marketing year
amounting to €29m (£22m).



This compensation will be shown as an exceptional credit in the group's income
statements.  Following this announcement, the unamortised cost arising from the
purchase of additional quota of 83,000 tonnes in 2006 and costs relating to the
closure of the York factory will be charged as an exceptional item totalling
some £45m.



A separate decision is awaited in respect of the application to renounce
permanent quota of 26,000 tonnes in Poland.  The financial consequences of this
will also be treated as an exceptional item.









For further information please contact:



Associated British Foods                       Tel: [phone]
John Bason, Finance Director

Citigate Dewe Rogerson                         Tel: [phone]
Jonathan Clare / Chris Barrie / Hannah Seward


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