2008 was a year that demonstrated why it's important to have a highly engaged Board of Directors with a wide range of skills and experience.

High commodity prices, distressed financial markets and the largest food recall in Canada's history made 2008 as unpredictable a year as we've seen. It also created a very challenging environment for management as they continued with the complex strategic transformation they began in 2006.

As management navigated through the recall, the Board met evenings and weekends when necessary, and sometimes as often as three times in one week, reviewing the evolving situation and providing feedback on strategy. This support helped management take decisive action, putting consumers and public health first, and making the right decisions for shareholders. The Board also advised management on material strategic issues ranging from capital markets strategy, human resources, brand strategy, all the way through to contributing to our search for a world-class information systems platform. Our directors are engaged and have the experience to ask the right questions!

2009 will be a year of renewal at Maple Leaf, as we fully recover from the recall, focus on completing our transformation and continue our journey to food safety leadership. The Board will also go through renewal, as three of our long-standing directors retire, and four more join us. We say goodbye to Bob Hiller, Don Loadman and Ted Newall, three very active and committed directors and thank them for their many years of support and guidance. Bob and Don have served on our Board for 14 years, and Ted for 12, and all three have served our shareholders well. Each of them have also chaired Board committees during their tenure.

We welcome four new board members. John Bragg is the CEO of a successful food products company he founded 40 years ago. Formerly on the board of Canada Bread, Mr. Bragg is already familiar with our Bakery Products Group, and will be an excellent addition. Geoffrey Beattie, is the CEO of The Woodbridge Company Limited and Deputy Chairman of Thomson Reuters Corporation, bringing considerable business and legal experience to our Board. Wayne Kozun and Bill Royan join us from our shareholder, the Ontario Teachers' Pension Plan. We welcome their wealth of experience, keen focus on shareholder returns and commitment to our ongoing success.

Finally, on behalf of all shareholders, I thank our employees for their unfailing support in 2008, which was a tough year by any measure. Despite a very difficult global economy, we look forward to a better year ahead.

Sincerely,

G. Wallace F. McCain, C.C.
Chairman