Re Agreement

Associated British Foods PLC
26 October 2000


      ABF Announces Long Term US Vegetable Oil Supply Agreement with ADM

Associated British Foods, the international food, ingredients and retail
group, announced today (26th October) that ACH Food Companies, its US oils and
ingredients business, has entered into a long term supply agreement with
Archer Daniels Midland Company (ADM), a fully integrated soybean crusher and
refiner, to supply ACH's Champaign, Illinois plant with its liquid soybean,
corn and other vegetable oil requirements.

ACH has taken the strategic decision to phase out refining and bleaching of
vegetable oils at Champaign, from early 2001, and to focus on the marketing,
development and manufacture of high value, specialised shortening and oil
products. Aligning with partners such as ADM will enable ACH to continue
marketing and selling high volume, commodity oils.

ABF will take an exceptional charge in its financial year to 16th September
2000 to reflect the write down of assets at Champaign associated with
commodity processing and also the asset write down and related costs of the
previously announced closure of the ACH oil and shortening plant at
Columbus,Ohio.


For more information, please call:

John Bason, Finance Director

Tel: [phone]