As Filed with the Securities and Exchange Commission on September 6, 2002


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-K


                      Annual Report Pursuant to Section 13
                     of the Securities Exchange Act of 1934

                     For the Fiscal Year Ended June 30, 2002

                          MIDWEST GRAIN PRODUCTS, INC.

                                1300 Main Street
                                     Box 130
                             Atchison, Kansas 66002
                            Telephone: (913) 367-1480

                       Incorporated in the State of Kansas


                           COMMISSION FILE NO. 0-17196

                               IRS No. 48-0531200

     The Company has no securities  registered  pursuant to Section 12(b) of the
Act. The only class of common stock outstanding  consists of Common Stock having
no par value,  8,066,786  shares of which were outstanding at June 30, 2002. The
Common Stock is registered pursuant to Section 12(g) of the Act.

     The  aggregate  market  value of the Common  Stock of the  Company  held by
non-affiliates, based upon the last reported sales price of such stock on August
13, 2002, was $75,716,644.

     The  Company  has filed all  reports  required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and
has been subject to such filing requirements for the past 90 days.

     As indicated by the following check mark,  disclosure of delinquent  filers
pursuant to Rule 405 of Regulation S-K is not contained herein,  and will not be
contained,  to the best of  registrant's  knowledge,  in a  definitive  proxy or
information  statement  incorporated  by  reference  in Part  III of  this  Form
10-K:[ ].

     The following documents are incorporated herein by reference:

     (1)  Portions  of  Midwest  Grain  Products,  Inc.  2002  Annual  Report to
          Stockholders,  pages  17  through  40  thereof,  are  incorporated  by
          reference into Part II and contained in Exhibit 13.

     (2)  Portions of Midwest  Grain  Products,  Inc.  Proxy  Statement  for the
          Annual  Meeting of  Stockholders  to be held on October  10,  2002 are
          incorporated  by reference  into Part III of this report to the extent
          set forth herein.



                                    CONTENTS
                                                                            PAGE
PART I
    Item 1.  Business.........................................................3
             General Information..............................................3
             Wheat-Based Products.............................................4
             Distillery Products..............................................8
             Transportation..................................................11
             Raw Materials...................................................11
             Energy..........................................................11
             Employees.......................................................12
             Regulation......................................................12
    Item 2.  Properties......................................................13
    Item 3.  Legal Proceedings...............................................14
    Item 4.  Submission of Matters to a Vote of Security Holders.............14
    Item 4A. Executive Officers of the Registrant............................14
PART II
    Item 5   Market for the Registrant's Common Equity and Related
                Stockholder Matters..........................................16
    Item 6.  Selected Financial Data.........................................17
    Item 7.  Management's Discussion and Analysis of Financial Condition
                and Results of Operation.....................................17
    Item 7A. Quantitative and Qualitative Disclosure About Market Risk.......17
    Item 8.  Financial Statements and Supplementary Data.....................17
    Item 9.  Changes in and Disagreements with Accountants on
                Accounting and Financial Disclosure..........................17
PART III
    Item 10. Directors of the Registrant.....................................18
    Item 11. Executive Compensation..........................................18
    Item 12. Security Ownership of Certain Beneficial Owners
                and Management...............................................18
    Item 13. Certain Relationships and Related Transactions..................18
PART IV
    Item 14. Exhibits, Financial Statement Schedules and Reports on
                Form 8-K.....................................................18

SIGNATURES...................................................................22
CERTIFICATIONS...............................................................23
FINANCIAL STATEMENT SCHEDULES...............................................S-1
         Report of Independent Public Accountants on Schedules..............S-2
         Schedule VIII.  Valuation and Qualifying Accounts..................S-3

     The  calculation  of the aggregate  market value of the Common Stock of the
Company held by non-affiliates is based on the assumption that non-affiliates do
not include  directors.  Such assumption does not constitute an admission by the
Company or any director that any director is an affiliate of the Company.

     This  report,  including  the  portions of the Annual  Report  incorporated
herein by reference,  contains forward-looking  statements as well as historical
information.  Forward-looking  statements  are  usually  identified  by  or  are
associated with such words such as "intend,"  "believe,"  "estimate,"  "expect,"
"anticipate,"  "hopeful," "should," "may" and similar expressions.  They reflect
management's  current  beliefs and estimates of future  economic  circumstances,
industry  conditions,  Company  performance  and  financial  results and are not
guarantees of future performance.  The  forward-looking  statements are based on
many assumptions and factors, including those relating to grain prices, gasoline
prices,  energy costs,  product  pricing,  competitive  environment  and related
market  conditions,  operating  efficiencies,  access to capital  and actions of
governments.  Any changes in the assumptions or factors could produce materially
different results than those predicted and could impact stock values.


                                       2


                                     PART I
ITEM 1.  BUSINESS.

GENERAL INFORMATION

     Midwest  Grain  Products,  Inc.  (the  Company)  is  a  Kansas  corporation
headquartered  in  Atchison,  Kansas.  It was  incorporated  in 1957  and is the
successor  to a business  founded  in 1941 by Cloud L.  Cray,  Sr. On August 27,
2002, the holders of the Company's  preferred stock approved an amendment to the
Company's Amended and Restated Articles of Incorporation  which, when it becomes
effective  on  October  10,  2002,   will  change  the  Company's  name  to  MGP
Ingredients, Inc.

     The Company is a fully  integrated  producer of  wheat-based  products  and
distillery products and has two reportable  segments,  wheat-based  products and
distillery products.  Wheat-based products consist of specialty, or value-added,
ingredients,  including  wheat  starches and  proteins,  commodity  ingredients,
including  commodity  wheat  starches  and vital wheat  gluten,  and mill feeds.
Distillery  products consist of food grade alcohol,  including  beverage alcohol
and industrial alcohol, fuel alcohol,  commonly known as ethanol, and distillers
grain and carbon  dioxide,  which are  by-products  of the Company's  distillery
operations.

     The Company  processes its products at plants  located in Atchison,  Kansas
and Pekin,  Illinois. The Company also operates a wheat protein and wheat starch
mixing facility in Kansas City,  Kansas.  Wheat is purchased directly from local
and regional farms and grain elevators and milled into flour and mill feeds. The
flour is processed with water to extract vital wheat gluten,  a portion of which
is further processed into specialty wheat proteins.  Vital wheat gluten and most
wheat protein  products are dried into powder and sold in packaged or bulk form.
The starch  slurry which  results  after the  extraction of the gluten and wheat
proteins is further  processed to extract  premium wheat  starch,  which is also
dried into powder and sold in packaged or bulk form,  either as commodity  wheat
starch or, after further  processing,  as specialty wheat starch.  The remaining
slurry is mixed with mill feeds,  corn  and/or  milo and water and then  cooked,
fermented and distilled into alcohol.  The residue of the distilling  operations
is dried and sold as a high protein  additive for animal  feed.  Carbon  dioxide
which is produced  during the  fermentation  process is trapped  and sold.  Mill
feeds not used in the distilling operations are sold to feed manufacturers.

     Note 13 of the Company's Notes to Consolidated Financial Statements,  which
is  incorporated  herein  by  reference,   includes   information  about  sales,
depreciation,  income before income taxes and  identifiable  assets for the last
three  fiscal  years by  reportable  segment.  The  following  table  shows  the
Company's  sales from  continuing  operations by each class of similar  products
during the past five fiscal years ended June 30, 2002,  as well as such sales as
a percent of total sales.


                                                                                       
                                                                   PRODUCT GROUP SALES
                                                                  Year Ended June 30,
                          -----------------------------------------------------------------------------------------------
                                   2002                2001              2000              1999                 1998
                             ----------------   ------------------ ---------------   ----------------   -----------------
                                                            (thousands of dollars)
                              Amount      %      Amount      %     Amount      %      Amount      %      Amount       %
Wheat-based Products
   Specialty Ingredients       $ 37,396   17.4   $ 32,918     14.4 $ 31,615    13.6   $ 28,445    13.2   $ 23,231    10.4
   Commodity Ingredients         27,478   12.8     44,751     19.5   68,483    29.6     54,881    25.3     47,049    21.1
   Mill Feed and Other
     Mill Products                1,358    0.7      2,034      0.9    2,759     1.2      3,046     1.4      5,017    2.2
                                -------           -------           -------            -------            -------
     Total Wheat-based
       Products                  66,232   30.9     79,703     34.8  102,857    44.4     86,372    39.9     75,297    33.7

Distillery Products:
   Food Grade Alcohol            34,402   16.0     42,320     18.4   43,864    18.9     49,649    23.0     63,421    28.4
   Fuel Grade Alcohol            86,385   40.3     83,686     36.5   62,066    26.7     54,639    25.3     51,277    23.0
   Distillery By-products        27,509   12.8     23,532     10.1   23,093    10.0     25,441    11.8     33,259    14.9
                               --------          --------    ----- --------   -----   --------   -----   --------    ----
     Total Distillery
       Products                 148,296   69.1    149,538     65.2  129,023    55.6    129,729    60.1    147,957    66.3
                               --------   -----  --------    ----- --------   -----   --------   -----   --------    ----
Net Sales                      $214,528   100.0  $229,241    100.0 $231,880   100.0   $216,101   100.0   $223,254   100.0
                               ========   =====  ========    ===== ========   =====   ========   =====   ========  ======


                                       3


     The Company's  results for fiscal 2002 improved over the prior fiscal year.
Net  income was $6.3  million  compared  to $2.7  million  in fiscal  2001,  due
principally  to funds  allocated  to the  Company  through  U.S.  Department  of
Agriculture programs and reduced energy and grain costs.

     Approximately 90% of the Company's wheat-based product sales and 23% of its
distillery  sales  (consisting  of food  grade  alcohol)  are made  directly  to
institutional  food and beverage  processors  and  distributors  with respect to
which the Company has longstanding  relationships.  Sales to these customers are
usually  evidenced by short term agreements  that are cancelable  within 30 days
and under which products are usually ordered,  produced, sold and shipped within
60 days.  However,  depending  on  market  conditions,  varying  amounts  of the
Company's fuel alcohol are sold under longer term contracts,  primarily to cover
the needs of gasoline  refiners  during  September  through  April of each year.
During fiscal 2002, two fuel alcohol customers,  BP Products North America, Inc.
and Martin Oil Marketing Ltd.  accounted for  approximately 37% of the Company's
distillery sales and 26% of the Company's consolidated revenues. In fiscal 2002,
approximately 5% of sales, consisting entirely of wheat-based products, were for
export,  with the bulk of international  sales going to Japan,  Mexico, and East
Asian and Southeast Asian countries which do not have wheat-based economies.

     Historically,  the  Company's  sales  have not  been  seasonal  except  for
variations  affecting  alcohol and vital wheat gluten sales.  Fuel alcohol sales
usually  increase  during the period August through March due to requirements of
the Clean Air Act which  inhibit  the sale of ethanol  in  certain  areas of the
country  during  May 1 through  September  15 each year.  Certain  environmental
regulations  also favor  greater use of ethanol  during the winter months of the
year. See  "DISTILLERY  PRODUCTS - FUEL GRADE ALCOHOL." Food grade alcohol sales
tend to peak in the fall as beverage alcohol  distributors  order stocks for the
holiday season. In prior years, vital wheat gluten sales have tended to increase
to a minor extent during the second half of the fiscal year as demand  increases
for hot dog and hamburger buns and similar bakery  products;  however,  this was
not the  case in  fiscal  2002  because  of the  Company's  decision  to  reduce
production  of  vital  wheat  gluten.  See  "WHEAT-BASED  PRODUCTS  -  COMMODITY
INGREDIENTS - VITAL WHEAT GLUTEN."

     The  Company's  strategy in recent years has been to focus on the marketing
and development of specialty wheat protein and starch products for use in unique
market  niches.  As a result of the  expiration  of the import  quota on foreign
wheat  gluten,  the Company has  intensified  its efforts to focus on developing
markets for its  specialty  wheat  proteins  and starch  products.  As described
herein,  during  fiscal 2002 the Company  received  approximately  $17.3 million
under a new government program designed to assist  manufacturers of wheat gluten
in their  transition  from the  historical  vital wheat  gluten  business to new
markets  and has  received  an  additional  $8.3  million  in fiscal  2003.  See
"Wheat-Based Products - Commodity Ingredients - Vital Wheat Gluten." These funds
are being used for research, marketing, promotional and capital costs related to
specialty  wheat  protein and starch  products  and should help  accelerate  the
Company's growth in these markets.

     For further information, see the "CONSOLIDATED FINANCIAL STATEMENTS" of the
Company and  "MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF THE COMPANY'S  FINANCIAL
CONDITION AND RESULTS OF OPERATIONS"  which appear at pages 18 through 27 of the
Annual Report.

WHEAT-BASED PRODUCTS

     Wheat-based  products  consist of modified and specialty,  or  value-added,
wheat  starches and proteins,  commodity  starches and  proteins,  consisting of
commodity wheat starches and vital wheat gluten, and mill feed.

     During fiscal 2002, sales of wheat-based  products declined by 17% from the
prior year due to a planned  reduction  in sales of  commodity  wheat starch and
vital wheat  gluten.  The Company  elected to reduce  production  of vital wheat
gluten due to pricing  pressures from subsidized  European Union  producers.  As
noted above,  the Company's  overall strategy is to focus on the development and
marketing  of  specialty  wheat  protein and starch  products  for use in unique
market niches,  and such products are accounting for an increasing  share of the
Company's  total  wheat-based  product  sales.  During  fiscal  2002,  specialty
wheat-based  ingredient sales increased by nearly 14%, to  approximately  56% of
total wheat-based  product sales. That share is expected to continue to increase
due to two  factors:  (i)  increased  capacity  to produce  these  products  and
increased marketing efforts,  resulting in greater customer  recognition and the
ability to meet anticipated  rising demand, and (ii) continuing decline in vital
wheat gluten sales resulting from an increase in supplies and pricing  pressures
from European Union producers.


                                       4


     SPECIALTY INGREDIENTS

     SPECIALTY WHEAT PROTEINS. In recent years the Company began the development
of a number of specialty  wheat  proteins  for food and  non-food  applications.
Specialty  wheat  proteins are derived from vital wheat gluten through a variety
of  proprietary  processes  which change the molecular  structure of vital wheat
gluten. Food application wheat proteins include gliadin,  glutenin,  products in
the   Wheatex(R),   FPTM  and  AriseTM  series  and  Pasta  Power  TM.  Non-food
applications  include wheat proteins designed for use primarily in cosmetics and
personal  care  products and  biodegradable  wheat protein that can be molded to
form a variety of biodegradable  plastic-like  objects.  The Company's specialty
wheat proteins  generally  compete with other  ingredients and modified proteins
having  similar  characteristics.,   primarily  soy  proteins  and  other  wheat
proteins,  with competition being based on factors such as functionality,  price
and,  in the  case  of food  applications,  flavor.  Although  a  number  of the
specialty wheat proteins have been launched, additional products are in the test
marketing or development stage.

     FOOD APPLICATIONS

     o    GLIADIN AND  GLUTENIN  are the two  principal  molecules  that make up
          vital  wheat  gluten.  The  Company's  patented  process  enables  the
          separation  of glutenin  and gliadin for a variety of end uses without
          the  use  of  alcohol,  which  has  been  the  traditional  method  of
          separating the two.  Glutenin,  a large molecule  responsible  for the
          elastic  character of vital wheat  gluten,  increases  the strength of
          bread  doughs,  improves  the  freeze-thaw  characteristics  of frozen
          doughs  and  may be  used  as a  functional  protein  source  in  beef
          jerky-type  products,  as  well  as in meat  extension.  Gliadin,  the
          smaller of the two  molecules,  is soluble in water and other liquids,
          including  alcohol,  and is responsible for the viscous  properties of
          wheat  gluten.  Those  characteristics  make it ideal to  improve  the
          texture of  noodles  and  pastas.  Gliadin is also used in a number of
          cosmetics  and  personal  care  products  as  described   below  under
          "Non-Food Applications."

     o    WHEATEX(R)SERIES consists of texturized wheat proteins made from vital
          wheat gluten by changing it into a pliable  substance  through special
          processing.  The resulting solid food product can be further  enhanced
          with flavoring and coloring and reconstituted  with water.  Texturized
          wheat  proteins  are  used for  meat,  poultry  and fish  substitutes,
          extenders and binders.  Wheatex(R)mimics the textural  characteristics
          and appearance of meat, fish and poultry products.  It is available in
          a variety of sizes and colors and can be easily  formed into  patties,
          links or virtually any other shape the customer  requires.  Because of
          its neutral taste,  Wheatex(R)will not alter flavors that are added to
          the product.  It also has excellent  water-binding  capacities for the
          retention of natural meat juices.  Wheatex(R)is  presently  being sold
          for applications in vegetarian and extended meat products.

     o    FP(TM) SERIES. The FPTM series of products consists of specialty wheat
          proteins,  each  tailored  for use in a variety of food  applications.
          These  include  proteins  that can be used to form barriers to fat and
          moisture  penetration  to enhance the  crispness  and  improve  batter
          adhesion in fried  products,  effectively  bond other  ingredients  in
          vegetarian patties and extended meat products and fortify  nutritional
          drinks.

     o    ARISE (TM)  SERIES.  The Arise (TM)  series of  products  consists  of
          specialty wheat proteins that increase the freshness and shelf life of
          frozen, refrigerated and fresh dough products after they are baked.

     o    PASTA POWER (TM) is a specialty wheat protein that is a cost-effective
          replacement  for whole eggs and egg whites and enhances the  strength,
          texture, quality and functionality of fresh, frozen and flavored pasta
          products.  The added  strength  enables  the  canning of pasta and its
          treatment with spices without significant  deterioration of the noodle
          or other pasta product, as in the case of canned spaghetti and similar
          products.


                                       5


     NON-FOOD APPLICATIONS

     o    COSMETICS AND PERSONAL CARE PRODUCTS. Specialty wheat proteins include
          proteins  that have been  hydrolyzed  or  otherwise  altered to become
          soluble in water and other liquids.  This enables their use in food as
          well as non-food cosmetic applications such as hair sprays,  shampoos,
          skin  lotions and similar  products.  These  include  Foam  Pro(R),  a
          hydrolyzed  wheat protein that has been developed as a foam booster to
          naturally  enhance  detergent  systems such as  shampoos,  liquid hand
          soaps and bath and shower gels; Aqua Pro(R)II WAA, a solution of amino
          acids   produced  from  natural  wheat  proteins  that  helps  provide
          excellent  moisturizing  and film forming  properties in both hair and
          skin  systems;  Aqua  Pro(R)11  WP,  an  additive  for  shampoo;  Aqua
          Pro(R)QWL, which enhances the functionality of hair conditioners;  and
          Aqua Pro(R)II WG, which is a gliadin  formulation that is used in hair
          and skin cleansers and conditioners.

     o    BIODEGRADABLE    GLUTEN/STARCH   RESINS.    PolytriticumTM   200   and
          PolytriticumTM  2000  are  the  Company's   environmentally   friendly
          biodegradable  gluten/starch  resins  that can be molded to  produce a
          variety of plastic-like objects.  Polytriticum(R) 200 may be used as a
          commercial  raw material for the  production  of pet treats and chews.
          Polytriticum(R)  2000 has been developed for use in disposable  eating
          utensils,  golf  tees,  food  and feed  containers  and  similar  type
          vessels.

     In July of 2001,  the Company  received  the first  $17.3  million out of a
total of approximately $26 million under a Bush Administration  program intended
to enable the gluten  industry  to move  forward in the face of  subsidized  and
protected  competition  from the European  Union. An additional $8.3 million was
received  after the start of fiscal 2003.  See  "COMMODITY  INGREDIENTS  - VITAL
WHEAT GLUTEN". The Company will use the funds to pay certain capital,  research,
marketing and promotional costs incurred in developing  products and markets for
value-added wheat gluten, or wheat protein, and wheat starch products.

     In October,  2001,  the Company's  Board approved plans for an $8.3 million
expansion  project that is expected to substantially  strengthen  production and
sales  capabilities for certain of the Company's  specialty wheat proteins.  The
expansion  will  occur at the  Company's  Atchison  plant and is  scheduled  for
completion  in early  fiscal 2003.  The project  involves  the  installation  of
additional processing and drying equipment for the production of ingredients for
bakery, pasta and noodle and related food markets, both domestically and abroad.
The cost of this project is expected to be offset by funds provided  through the
U.S. Department of Agriculture  Commodity Credit Corporation program referred to
above.

     SPECIALTY WHEAT STARCH.  Wheat starch constitutes the  carbohydrate-bearing
portion of wheat flour.  The Company  produces a pure white premium wheat starch
powder by extracting  the starch from the starch slurry,  substantially  free of
all impurities and fibers,  and then by spray,  flash or drum drying the starch.
Premium  wheat  starch  differs  from low grade or B wheat  starches,  which are
extracted  along with  impurities and fibers and are used primarily as a binding
agent  for  industrial  applications,   such  as  the  manufacture  of  charcoal
briquettes.  The Company  does not  produce low grade or B starches  because its
integrated  processing facilities are able to process the slurry remaining after
the  extraction  of premium  wheat starch into  alcohol,  animal feed and carbon
dioxide.  Premium  wheat  starch  differs  from  corn  starch  in  its  granular
structure, color, granular size and name identification.

     A  substantial  portion of the  Company's  premium  wheat starch is altered
during  processing to produce certain unique  specialty wheat starches  designed
for  special  applications  in niche  markets.  The  Company's  specialty  wheat
starches  are used  primarily  as an additive  in a variety of food  products to
affect their  appearance,  texture,  tenderness,  taste,  palatability,  cooking
temperature,  stability,  viscosity,  binding and  freeze-thaw  characteristics.
Important  physical  properties  contributed by wheat starch include  whiteness,
clean flavor,  viscosity and texture.  For example,  the Company's  starches are
used to improve the taste and mouth feel of cream puffs, eclairs,  puddings, pie
fillings,  breadings  and  batters;  to improve the size,  symmetry and taste of
angel food  cakes;  to alter the  viscosity  of soups,  sauces and  gravies;  to
improve the freeze-thaw  stability and shelf life of fruit pies and other frozen
foods; to improve moisture retention in microwavable foods; and to add stability
and to improve spreadability in frostings, mixes, glazes and sugar coatings. The
Company's  specialty  starches  are also  sold for a number  of  industrial  and
non-food applications, which include uses in the manufacture of adhesives, paper
coatings and carbonless paper.

     The Company's  specialty  wheat starches  primarily are sold  nationwide to
food processors and distributors.

                                       6


     Although wheat starch enjoys a relatively small portion of the total United
States starch market, the market is one which has experienced substantial growth
over the years.  The unique  characteristics  of wheat starch  provide it with a
number of advantages  over corn and other  starches for certain baking and other
end uses.  The  Company  has  developed a number of  different  specialty  wheat
starches, and continues to explore the development of additional starch products
with the view to increasing sales of value added specialty starches.

     Both  commodity and specialty  wheat starches  compete  primarily with corn
starch,  which  dominates the United States  market.  Competition  is based upon
price,  name, color and differing  granular and chemical  characteristics  which
affect the food product in which it is used.  Specialty  wheat starches  usually
enjoy a price premium over corn starches and low grade wheat starches. Commodity
wheat starch price  fluctuations  generally  track the  fluctuations in the corn
starch  market.  The  specialty  wheat starch  market  usually  permits  pricing
consistent with costs which affect the industry in general,  including increased
grain costs. The Company's strategy is to market its specialty wheat starches in
special  market niches where the unique  characteristics  of these  starches are
better suited to a customer's requirements for a specific use.

     COMMODITY INGREDIENTS

     VITAL WHEAT GLUTEN.  Vital wheat gluten is a free-flowing  light tan powder
which contains approximately 75% to 80% protein. Its vitality,  water absorption
and retention and  film-forming  properties make vital wheat gluten desirable as
an  ingredient  in many food  products.  It appears to be the only  commercially
available high protein food additive which possesses  vitality.  "Vitality" is a
term used to indicate the relative  viscoelasticity of gluten,  which enables an
end  product  containing  gluten to maintain a cohesive  texture  and  withstand
stretching or tearing.  For example, it is the vitality of the wheat gluten used
in making hot dog buns that gives  greater  "hinge"  strength to the buns,  thus
allowing consumers to open and close the buns without breaking them.

     Vital wheat gluten is added by bakeries and food processors to baked goods,
such as breads, and to pet foods, cereals, processed meats, fish, and poultry to
improve the nutritional  content,  texture,  strength,  shape, and volume of the
product.  The neutral flavor and color of wheat gluten also  enhances,  but does
not change, the flavor and color of food. The cohesiveness and elasticity of the
gluten  enables the dough in wheat and other high protein  breads to rise and to
support added  ingredients,  such as whole cracked  grains,  raisins and fibers.
This allows the baker to make an array of different breads by varying the gluten
content of the dough.  Vital wheat gluten is also added to white breads, hot dog
buns and hamburger buns to improve the strength and cohesiveness of the product.

     The Company  produces vital wheat gluten from modernized  facilities at the
Atchison and Pekin  plants.  It is shipped  throughout  the  continental  United
States  in bulk and in 50 to 100  pound  bags to  distributors  and also is sold
directly to major food processors and bakeries.

     Vital wheat gluten is considered a commodity and therefore  competition  is
based  primarily  upon price.  The Company's  principal  competitors in the U.S.
vital wheat gluten market consist  primarily of three other  domestic  producers
and  producers in the European  Union,  Australia  and certain  other  regulated
countries (the "Foreign Exporters").

     Between  June 30,  1994  and June 30,  1998,  the  European  Union  took an
increasingly  large  share  of  the  U.S.  gluten  market.  As a  result  of the
increasing  surge of large,  subsidized  volumes of European  Union wheat gluten
into the U.S.,  vital wheat gluten  prices have been  primarily  affected by (i)
excess European Union capacity,  (ii) high tariff barriers,  subsidies and other
protective measures  ("Subsidies") provided to European Union exporters by their
host  governments,  (iii) low U.S.  tariffs and (iv) gluten import  quotas.  The
Subsidies and low U.S.  tariffs  encouraged  European Union  producers to expand
wheat  starch  and  wheat  gluten  production   capacity  and  to  continue  the
development  of  even  greater   capacities.   On  May  30,  1998,  the  Clinton
administration  imposed  annual  quantitative  limitations  for  three  years on
imports of wheat gluten from the European  Union and other Foreign  Exporters at
an amount equal to the total  average  imports of wheat gluten  shipped into the
United  States by the Foreign  Exporters  during the three crop years ended June
30, 1995. In lieu of extending the quota when it expired in June, 2001, the Bush
Administration  announced a program to provide the wheat  gluten  industry up to
$40  million   over  two  years  to  help  it   complete   its   transition   to
competitiveness.  Administered by the U.S. Department of Agriculture's Commodity
Credit  Corporation,  the program is scheduled  to end May 31,  2003.  Under the
program,  the Company is eligible for


                                       7


approximately $26 million of the program total of $40 million. On June 29, 2001,
the  Company  received  approximately  $17,280,000  for  the  first  year of the
program.  The Company  received  the balance of the award for the second year of
the  program  in July,  2002.  The funds are to be used for  capital,  research,
marketing and promotional  costs related to value-added  wheat protein and wheat
starch  products  and are not  intended  to be used  to  reduce  production  and
marketing related costs for commodity vital wheat gluten and wheat starches that
could extend the U.S.  industry's  participation  in those markets.  The Company
must submit quarterly reports to the Commodity Credit Corporation  listing costs
incurred and activities conducted to date and an annual performance report after
each  year of the  program  explaining  its  activities.  The  Commodity  Credit
Corporation  may ask for a  refund  with  interest  of some or all of the  funds
allocated  to the  Company  if it  determines  that  the  Company  has not  made
significant progress in completing its stated activities.  Based on its contacts
with Commodity  Credit  Corporation  personnel  through the quarterly  reporting
process, the Company believes that it is making satisfactory progress.

     Since the  imposition of the quota,  the Company has focused its efforts on
developing and increasing the production and sales of specialty  wheat products.
These are niche  products that the Company  expects will be able to compete more
effectively  with increased  foreign imports.  Although  additional quota relief
would have been helpful,  the Commodity  Credit  program  supports the Company's
strategy  and  should  strengthen  its  efforts  to move  increasingly  into the
development,   production  and  marketing  of  value-added  wheat  proteins  and
starches.  However,  there can be no assurance  that the Company will be able to
compete  effectively  in a market that is  inundated  with low cost,  subsidized
foreign gluten.

     COMMODITY  WHEAT  STARCH.  In addition to  specialty  wheat  starches,  the
Company's  premium wheat starches  include  commodity wheat starches.  As is the
case with specialty wheat starches,  commodity wheat starches have both food and
non-food  applications,  but such  applications  are more  limited than those of
specialty wheat starches and commodity  wheat starches  command a lower price in
the marketplace. As noted above, commodity wheat starches compete primarily with
corn starches, which dominate the marketplace,  and commodity wheat starch price
fluctuations generally track the fluctuations in the corn starch market.

     MILL FEED AND OTHER MILL PRODUCTS

     The  Company  owns and  operates a flour mill at the  Atchison  plant.  The
mill's  output of flour is used  internally  to  satisfy a  majority  of the raw
material  needed for the  production  of vital wheat  gluten and  premium  wheat
starch.

     In addition to flour,  the wheat milling  process  generates  mill feeds or
"midds." Midds are sold to processors of animal feeds as a feed additive.

DISTILLERY PRODUCTS

     The Company's  Atchison and Pekin plants process mill feeds and corn and/or
milo, mixed with the starch slurry from gluten and starch processing operations,
into food  grade  alcohol,  fuel  grade  alcohol,  distiller's  feed and  carbon
dioxide.

     Food grade alcohol, or grain neutral spirits,  consists of beverage alcohol
and  industrial  food grade alcohol that are distilled to remove all  impurities
and all but  approximately  5% of the water  content to yield high  quality  190
proof  alcohol.  Fuel grade  alcohol,  or  "ethanol,"  is a lower grade of grain
alcohol  that is  distilled  to remove  all  water to yield  200  proof  alcohol
suitable for blending with gasoline.

     During fiscal 2002,  distillery  product sales were slightly lower than the
prior  year.  Sales of food grade  alcohol  were lower,  notwithstanding  higher
selling  prices,  due to decreased  unit sales of both  beverage and  industrial
grade  alcohol.  Sales of fuel grade  alcohol  were higher in fiscal 2002 due to
higher  unit  sales and  higher  selling  prices in the first half of the fiscal
year.  However,  as a  result  of  increased  industry  capacity  and a delay in
implementing  an MTBE ban in California,  prices  declined in the second half of
the year and,  although  prices had  improved  somewhat by fiscal year end,  the
average  price of fuel  alcohol for the year as a whole was lower than the prior
year. Sales of distillers' feeds increased  modestly due to increase unit sales.
The  Company  uses  gasoline  futures  to hedge  fuel  alcohol  sales made under
contracts with price terms based on gasoline futures.



                                       8


     In fiscal 2001,  the Company's  Board of Directors  approved a $2.1 million
distillery  improvement  project at the Atchison  plant to enhance the Company's
production capabilities for both food grade and fuel grade alcohol. In May 2002,
the  Company  completed  the  installation  of a new feed  drier  at its  Pekin,
Illinois  plant at a cost of  approximately  $5  million.  The new drier  should
improve alcohol production efficiencies at the Pekin plant

     FOOD GRADE ALCOHOL

     BEVERAGE ALCOHOL.  Food grade beverage alcohol consists  primarily of grain
neutral spirits and gin. Grain neutral spirits is sold in bulk or processed into
vodka and gin and sold in bulk  quantities  at various proof  concentrations  to
bottlers and rectifiers, which further process the alcohol for sale to consumers
under numerous labels.

     The Company  believes that in terms of fiscal 2002 net sales,  it is one of
the three  largest bulk sellers of grain neutral  spirits,  vodka and gin in the
United  States.  The Company's  principal  competitors  in the beverage  alcohol
market are Grain  Processing  Company  of  Muscatine,  Iowa and  Archer  Daniels
Midland of Decatur,  Illinois.  Competition  is based  primarily  upon price and
service,  and in the case of gin,  formulation.  The Company  believes  that the
centralized location of its Illinois and Kansas distilleries and the capacity of
its dual  production  facilities  combine to provide the Company with a customer
service advantage within the industry.

     INDUSTRIAL  ALCOHOL.  Food  grade  alcohol  which is not  sold as  beverage
alcohol is  marketed as food grade  industrial  alcohol.  Food grade  industrial
alcohol is sold as an ingredient in foods (e.g.,  vinegar and food  flavorings),
personal care products (e.g., hair sprays and deodorants),  cleaning  solutions,
biocides,  insecticides,  fungicides,  pharmaceuticals,  and a variety  of other
products.  Although grain alcohol is chemically the same as  petroleum-based  or
synthetic alcohol,  certain customers prefer a natural grain-based alcohol. Food
grade industrial  alcohol is sold in tank truck or rail car quantities direct to
a number of industrial processors from both the Atchison and Pekin plants.

     The Company is a minor  competitor  in the total United  States  market for
food  grade  industrial  alcohol,  which  is  dominated  by  petroleum-based  or
synthetic alcohol.  Food grade industrial alcohol prices are normally consistent
with prices for synthetic industrial alcohol.

     FUEL GRADE ALCOHOL

     Fuel grade  alcohol,  which is commonly  referred  to as  ethanol,  is sold
primarily for blending with gasoline to increase the oxygen and octane levels of
the gasoline. As an octane enhancer,  ethanol can serve as a substitute for lead
and petroleum based octane enhancers. As an oxygenate,  ethanol permits gasoline
to meet certain environmental  regulations and laws that regulate air quality by
reducing carbon  monoxide,  hydrocarbon  particulates  and other toxic emissions
generated from the burning of gasoline  ("toxics").  Because ethanol is produced
from grain, a renewable resource, it also provides a fuel alternative that tends
to reduce the country's dependence on foreign oil.

     Although  ethanol can be blended  directly with gasoline as an oxygenate to
enable it to reduce toxic air  emissions,  it also  increases the  volatility of
gasoline or its tendency to evaporate  and release  volatile  organic  compounds
("VOC's").  This latter  characteristic  has  precluded it from meeting  certain
Clean Air Act requirements for gasoline that pertain to nine of the smoggiest U.
S. metropolitan  areas during the summer months (May 1 through September 15). As
a consequence, the demand for ethanol typically increases during the period from
August through March of each fiscal year as gasoline blenders acquire stocks for
blending with  gasoline to be marketed in the period  September 16 through April
30.

     Since the adoption of the Clean Air Act,  the gasoline  industry has relied
primarily upon methyl  tertiary butyl ether (MTBE) to reduce toxic  emissions of
air pollutants to meet the  requirements of the Act and related EPA regulations.
Ethanol is also used to a lesser  extent  during the cooler  months of the year.
However,  the EPA has concluded  that the use of MTBE has created a "significant
and  unacceptable  risk to drinking water and groundwater  resources."  Concerns
have also been raised as to the  effectiveness of MTBE versus the  effectiveness
of Ethanol as a reducer of air pollutants.  As the result of these concerns, the
EPA  commissioned a "Blue Ribbon Panel" to investigate  the matter and recommend
solutions.  In March 2000, the EPA announced the  recommendations  of the Panel.
The  recommendations  proposed  that the Clean Air Act be amended to provide the
EPA with authority to significantly


                                       9


reduce or eliminate  the use of MTBE,  and to "replace  the 2 percent  oxygenate
requirement in the Clean Air Act with a renewable  fuel annual  average  content
for all gasoline at a level that  maintains the current level of renewable  fuel
(1.2 percent of the gasoline  supply) and allows for  sustained  growth over the
next decade ."

     According to the  Renewable  Fuels  Association,  several  states also have
begun to take action to curb the use of MTBE.  These states include  California,
Connecticut,  Illinois,  Michigan,  New York and Ohio. In June of 2001, the Bush
Administration  denied  California's  request for a waiver from the clean octane
provisions of the Clean Air Act that require oxygenates in gasoline. As a result
of such actions,  certain producers  increased capacity and/or built inventories
of ethanol in  anticipation of the expanded market for ethanol in California and
elsewhere.  However,  the governor of California delayed the state's ban on MTBE
for a year, from January 2003 to January 2004, causing a surplus of fuel alcohol
and the resulting softening in prices At the end of fiscal 2002, prices began to
improve as various gasoline suppliers to California announced plans to switch to
ethanol-blended fuels prior to the effective date of the delayed ban on MTBE.

     In the  long-term,  the Company  believes  the future for  ethanol  remains
promising. This expectation is partially based on the U.S. Senate's passage of a
comprehensive  energy  bill in April  of 2002  that  includes  a  provision  for
establishing a renewable fuels standard.  Based on information  published by the
Renewable Fuels Association, this provision could triple the use of ethanol to 5
billion gallons  annually by 2012. The energy bill must now be considered by the
U.S.  House-Senate  Conference Committee and could be forwarded to the President
by the end of 2002.  However,  there can be no  assurance  that the bill will be
enacted in its present form, if at all.

     The  cost of  producing  ethanol  has  historically  exceeded  the  cost of
producing  gasoline  and  gasoline  additives,  such as MTBE,  all of which  are
derived  from fossil  non-renewable  fuels such as  petroleum.  Accordingly,  to
encourage the production of ethanol for use in gasoline,  the Federal government
and  various  states  have  enacted  tax and other  incentives  designed to make
ethanol competitive with gasoline and gasoline additives. In December, 2000, the
U.S.  Department of Agriculture  initiated a program to provide a cash incentive
for ethanol producers who increase their grain usage over comparable quarters in
the prior year to raise fuel alcohol production. The Company presently satisfies
the program's eligibility requirements and began receiving payments in the third
quarter of fiscal 2001. It received  payments of  approximately  $1.6 million in
fiscal 2001 and  approximately  $4.1 million in fiscal 2002 under this  program.
The program extends through  September 2006, with funding  determined  annually.
The Company's eligibility to participate in the program is determined quarter to
quarter.

     Under the internal  revenue code, and until the end of 2007,  gasoline that
has been blended in qualifying  proportions  with ethanol provide sellers of the
blend with certain income tax credits and excise tax  reductions  that amount to
up to $0.54 per gallon of ethanol that is mixed with the gasoline  (the "Federal
Tax Credit"). A mix of at least 10% ethanol by volume is required to receive the
maximum credit. Although the Federal Tax Credit is not directly available to the
Company,  it allows the Company to sell its ethanol at prices  competitive  with
less  expensive  additives  and  gasoline.  From  time to time,  legislation  is
proposed to eliminate,  reduce or extend the tax benefits enjoyed by the ethanol
industry  and  indirectly  by  producers  of the grain  that is  converted  into
ethanol.  During 1998,  legislation was enacted that extended the credit through
2007, with the credit being reduced to $0.51 per gallon beginning in 2005.

     The Kansas Qualified  Agricultural  Ethyl Alcohol Producer  Incentive Fund,
which has been  extended  to 2011,  provides  incentives  for  sales of  ethanol
produced in Kansas to gasoline  blenders.  After 2004,  incentives  will be paid
only for increased  production  over base year  (calendar  year 2000) sales.  No
producer  may receive  payments  for more than seven  years  under the  program.
Fiscal 2002  payments to the Company out of the fund  totaled  $544,000  for the
ethanol produced by the Company at the Atchison plant during that year.

     The fuel grade alcohol market is dominated by Archer Daniels Midland,  with
the Company  being among the smaller of a few other  larger  second tier ethanol
producers.  The Company  competes with other  producers of fuel grade alcohol on
the basis of price and delivery service.

     DISTILLERY   BY-PRODUCTS.   The  bulk  of  fiscal  2002  sales  of  alcohol
by-products  consisted of distillers feeds.  Distillers feeds are the residue of
corn, milo and wheat from alcohol  processing  operations.  The residue is dried
and sold primarily to processors of animal feeds as a high protein additive. The
Company  competes with other  distillers of alcohol as well as a number of other
producers  of animal food  additives  in the sale of  distillers  feeds and mill
feeds.



                                       10


     The balance of alcohol  by-products  consists  primarily of carbon dioxide.
During the  production of alcohol,  the Company traps carbon dioxide gas that is
emitted in the fermentation  process. The gas is purchased and liquefied on site
by two  principal  customers,  one at the  Atchison  Plant  and one at the Pekin
Plant, who own and operate the carbon dioxide  processing and storage  equipment
under long term contracts with the Company. The liquefied gas is resold by these
processors  to a variety of  industrial  customers  and  producers of carbonated
beverages.

TRANSPORTATION

     The Company's  output is transported to customers by truck,  rail and barge
transportation  equipment,  most of which is provided by common carriers through
arrangements made by the Company.  The Company leases 244 rail cars which may be
dispatched  on short notice.  Shipment by barge is offered to customers  through
barge loading facilities on the Missouri and Illinois Rivers. The barge facility
on the  Illinois  River is adjacent to the Pekin plant and owned by the Company.
The facility on the Missouri River, which is not company-owned, is approximately
one mile from the Atchison plant.

RAW MATERIALS

     The Company's  principal raw material is grain,  consisting of wheat, which
is processed into all of the Company's  products,  and corn and milo,  which are
processed  into  alcohol,  animal feed and carbon  dioxide.  Grain is  purchased
directly from surrounding  farms,  primarily at harvest time, and throughout the
year from grain elevators.  The Company purchases approximately 70% of its grain
at spot market prices. To assure supplies,  the Company may enter into contracts
to take future  delivery  within 30 days.  These are fixed price contracts which
are based on prices of future  contracts and specify the amount,  type and class
of grain and the price.  The  Company  can call for  delivery at any time within
thirty days of the contract.  The Company does not have any long-term  contracts
with any suppliers.

     Historically,  the cost of grain is  subject  to  substantial  fluctuations
depending  upon a number of factors  which affect  commodity  prices in general,
including  crop  conditions,  weather,  government  programs,  and  purchases by
foreign  governments.  Such variations in grain prices have had and are expected
to have from time to time  significant  adverse  effects  on the  results of the
Company's  operations.  This is primarily due to a variety of factors. From time
to time it has been  difficult  for the Company to  compensate  for increases in
grain costs through  adjustments in prices charged for the Company's vital wheat
gluten  due to the  surge of  subsidized  European  Union  wheat  gluten,  whose
artificially  low prices are not affected by such costs.  Now that the quota has
been lifted,  the Company expects it will be more difficult to do so. Also, fuel
grade alcohol prices,  which historically have tracked the cost of gasoline,  do
not usually adjust to rising grain costs.  Similarly,  prices of commodity wheat
starches  generally track the prices of corn starch and usually do not adjust to
rising wheat prices.

     During  fiscal  2002,  market  prices for grain  remained  reasonable.  The
average  Kansas City market  price per bushel for corn and milo was $1.96 during
2002 and $1.88  during  2001 while the average  Kansas  City market  price for a
bushel of wheat was $2.90 during 2002 versus $2.87 during 2001.

     The Company engages in the purchase of commodity  futures to hedge economic
risks associated with fluctuating grain and grain products prices. During fiscal
2002, the Company hedged approximately 48% of corn processed,  compared to 8% in
2001.  Of the wheat  processed  by the  Company,  none was hedged in fiscal 2002
compared to 9% in fiscal 2001.  The  contracts  are accounted for as hedges and,
accordingly,  gains and losses are deferred and  recognized  in cost of sales as
part of contract costs when contract  positions are settled and related products
are sold.  For fiscal 2002,  raw material  costs  included a net hedging loss of
approximately  $1.8 million on contracts  settled  during the year compared to a
net loss of $1.2  million for fiscal  2001.  See  "MANAGEMENT'S  DISCUSSION  AND
ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS - MARKET RISK" in the
Annual Report.

ENERGY

     Because energy  comprises a major cost of operations,  the Company seeks to
assure  the  availability  of  fuels  for  the  Pekin  and  Atchison  plants  at
competitive prices.

                                       11


     The Company needs fuel to operate  boilers that it uses to make steam heat.
In  Atchison,  the Company can use either oil or natural gas and switch from one
to the other when prices dictate. Natural gas for the Atchison plant is procured
in the open market from various  suppliers.  The Company can purchase  contracts
for the  delivery of gas in the future or can purchase  future  contracts on the
exchange.  Depending on existing market conditions,  the Company has the ability
to transport the gas through a gas pipeline owned by a  wholly-owned  subsidiary
of the Company. In Pekin, the Company only uses natural gas, which it can either
procure through Central Illinois Light Company or through other  suppliers.  The
Company has a multi-year  agreement  with Central  Illinois  Light Company under
which the utility will  transport  gas to the  Company's  plant on the utility's
pipeline.  The Company may purchase gas from Central Illinois Light Company on a
negotiated  basis or on a fixed  price  basis for up to 24  months.  In order to
control energy costs,  the Company has a risk  management  program  whereby,  at
pre-determined  prices,  the Company will  purchase a portion of its natural gas
requirements for future delivery.

     In 1995,  the Company  entered  into a long-term  arrangement  with Central
Illinois Light Company and its  subsidiary,  CILCORP  Development  Services Inc.
(collectively  "CILCO"),  with respect to its Pekin,  Illinois plant.  Under the
arrangement, the Company has leased a portion of its plant facility to CILCO for
a term ending in December 2009.  CILCO  constructed a new gas fired electric and
steam  generating  facility  on ground  leased  from the  Company  and agreed to
provide  steam heat to the  Company's  plant.  If the Company fails to renew the
lease  for 19 years at the end of the  lease  term,  it must pay  CILCO the book
value of the boiler plant and cogeneration facility, which the Company estimates
will be $10.6 million. Under a related steam heat service agreement, the Company
has agreed to  purchase  its  requirements  for steam  heat from CILCO  until no
earlier than December 2009.  Either party may terminate the service agreement at
the end of the initial term or thereafter  upon two years  notice.  Also, if gas
prices  have  risen  to a  level  such  that  operating  a steam  facility  with
alternative  fuel  would be more  attractive  and the  payback  period for a new
facility  would be five years or less,  the  Company may  terminate  the service
agreement prior to the end of the initial term upon two years notice by making a
specified payment to CILCO, currently approximately  approximately $1.5 million.
The Company must make adjustable  minimum monthly  payments over the term of the
service agreement, currently $70,265, with declining fixed charges for purchases
in excess of minimum usage,  and is responsible for fuel costs and certain other
expenses.  However, CILCO also uses the boilers to run electric generating units
that it constructed on the leased site and pays the Company for a portion of the
fuel costs that the Company incurs for the production of steam, based on savings
realized by CILCO from generating electricity at the facility.

     The Company also has a one year  contract,  which expires in April 2003, to
purchase electricity from Central Illinois Light Company at fixed rates.

EMPLOYEES

     As of June 30, 2002, the Company had 436 employees, 273 of whom are covered
by two collective  bargaining  agreements  with one labor union.  One agreement,
which was  schedule to expire on August 31, 2002 but which has been  extended to
September  16,  2002,  covers 185  employees at the  Atchison  Plant.  The other
agreement,  which expires on October 31, 2003,  covers 88 employees at the Pekin
plant. As of June 30, 2001, the Company had 416 employees.

     The Company  considers its relations  with its personnel to be good and has
not experienced a work stoppage since 1978.

REGULATION

     The  Company's  beverage  and  industrial  alcohol  business  is subject to
regulation  by the Bureau of Alcohol,  Tobacco  and  Firearms  ("BATF")  and the
alcoholic  beverage  agencies  in  the  States  of  Kansas  and  Illinois.  Such
regulation  covers virtually every aspect of the Company's  alcohol  operations,
including production facilities,  marketing,  pricing, labeling,  packaging, and
advertising.  Food  products are also subject to regulation by the Food and Drug
Administration.  BATF regulation includes periodic BATF audits of all production
reports,  shipping  documents,  and  licenses to assure that proper  records are
maintained.  The Company is also required to file and maintain  monthly  reports
with the BATF of alcohol inventories and shipments.

     The  Company  is  subject  to  extensive  environmental  regulation  at the
federal, state and local levels. The


                                       12


regulations  include the  regulation  of water  usage,  waste  water  discharge,
disposal  of  hazardous  wastes and  emissions  of volatile  organic  compounds,
particulates  and other  substances  into the air. Under these  regulations  the
Company is required to obtain  operating  permits and to submit periodic reports
to regulating agencies. For the Atchison and Kansas City, Kansas plants, the air
quality is regulated by both the U.S.  Environmental  Protection  Agency ("EPA")
and  the  Division  of  Environment  of the  Kansas  Department  of  Health  and
Environment  (the "KDHE").  The KDHE  regulates all air  emissions.  The Company
tests  volatile  organic  compound  emissions on a monthly basis at the Atchison
plant, and must submit  semi-annual  reports  regarding these emissions tests to
the KDHE.  The Company also was required to obtain an air operating  permit from
the KDHE and must obtain  KDHE  approval  to make plant  alterations  that could
modify the emission levels.  The KDHE also regulates the discharge water quality
at the Atchison  plant.  This includes  process  water,  cooling water and storm
water. The Company monitors process water and cooling water discharge on a daily
basis and submits monthly reports to the KDHE  documenting the test results from
these water  discharges.  The EPA and KDHE also monitor hazardous waste disposal
for the Atchison and Kansas City plants.  The Company also is required to submit
annual reports pursuant to the Kansas and Federal Emergency  Planning  Community
Right-to-Know  Acts.  Local  officials,  such as the  local  emergency  planning
committees in the Atchison and Kansas City  communities,  also receive copies of
these annual reports.

     Similar  environmental  regulations apply to the Pekin,  Illinois facility.
Air quality at the Pekin  plant is  regulated  by both the EPA and the  Illinois
Environmental  Protection  Agency  (the  "IEPA").  The  IEPA  regulates  all air
emissions.  The Company has permits to make certain emissions,  and the IPEA has
the right to do on-site  testing to verify that the Company's  emissions  comply
with its permits.  Also, the IEPA regulates waste water, cooling water and storm
water  discharge  at the Pekin  plant.  The Company  tests  wastewater  effluent
quality  twice each week and files  monthly  reports with the IEPA.  The Company
also files an Annual  Emissions  Report and a Toxic Release  Inventory  annually
with the IEPA.  The Pekin facility is also required to submit  periodic  reports
pursuant to the Illinois and Federal Emergency Planning Community  Right-to-Know
Acts.

     During 1997 the  Illinois  Environmental  Protection  Agency  commenced  an
action  against the Company with respect to alleged  noncompliance  of the Pekin
Plant with  certain air quality  regulations.  This action is further  described
under "Item 3. Legal Proceedings."

ITEM 2.  PROPERTIES.

     The Company maintains the following principal plants, warehouses and office
facilities:




                                                                                         
                                                                          Plant Area       Tract Area
    Location                   Purpose                                   (in sq. ft.)      (in acres)
    --------                   -------                                   ------------      ----------
    Atchison, Kansas           Principal executive offices,                494,640             25
                               grain processing, warehousing,
                               and research and quality
                               control laboratories.

    Kansas City, Kansas        Specialty protein and starch                 83,200             12.5
                               mixing facility and warehouse

    Pekin, Illinois            Grain processing, warehousing,              462,926             49
                               and quality control laboratories.


The facilities  mentioned above are generally in good operating  condition,  are
currently  in normal  operation,  are  generally  suitable  and adequate for the
business activity conducted therein, and have productive  capacities  sufficient
to maintain  prior levels of production.  The Atchison and Pekin  facilities are
owned,  and the Kansas City  facility is leased from the Unified  Government  of
Wyandotte  County,  Kansas City,  Kansas pursuant to an industrial  revenue bond
financing  consummated  in  August  2001.  The  Company  has  entered  into loan
agreements  which  contain  covenants  that  limit its  ability  to  pledge  its
facilities to others. The Company also owns  transportation  equipment and a gas
pipeline described under "BUSINESS - TRANSPORTATION" and "ENERGY."



                                       13


ITEM 3.  LEGAL PROCEEDINGS.

     On April 13,  1997,  an  administrative  proceeding  was filed  against the
Company's  Illinois  subsidiary before the Illinois Pollution Control Board (the
"Board"),   by  the  Illinois   Attorney  General  on  behalf  of  the  Illinois
Environmental  Protection Agency (the "Agency").  The proceeding  relates to the
Company's  installation  and  operation  of two feed  dryers at its  facility in
Pekin,  Illinois.  The Complaint  alleges that the dryers exceed the particulate
emission  limitations  specified in the construction permits for the units; that
the dryers are being operated  without  operating  permits;  and that the dryers
were  constructed  without  a  Prevention  of  Significant  Deterioration  (PSD)
construction  permit setting forth a best available control technology  ("BACT")
emission  limitation.  The Complaint seeks a Board order ordering the Company to
cease and desist from  violations of the Illinois  Environmental  Protection Act
and associated  regulations,  assessing a civil penalty,  and awarding the state
its attorneys fees.

     The Company has filed an Answer before the Board  admitting that compliance
tests have shown particulate  emissions in excess of the limits set forth in the
construction permits, but denying the remainder of the State's claims. Since the
time  operational  problems were discovered with the dryers'  pollution  control
equipment,  the Company has been conferring and  negotiating  with the Agency on
the issues  involved  in the  Complaint.  The  Company  and the Agency have been
conducting  air modeling to support the  construction  of new pollution  control
equipment for the dryers, which the Company estimates will cost approximately $1
million.  It is  anticipated  that the new equipment  will bring  emissions into
compliance with all applicable  limitations.  Currently,  the modeling indicates
that the addition of the pollution  control  equipment plus raising  certain air
emission  stacks will be sufficient to bring  emissions into compliance with all
applicable limitations.

     Proceedings  under the Complaint are being held in abeyance by agreement of
the  parties  pending  completion  of the air  modeling  and  completion  of the
Company's  compliance   activities.   The  Company  anticipates   negotiating  a
settlement  of the  remainder  of the  State's  claims  shortly,  including  any
penalties.  The  state has  recently  indicated  that it may be asking  for some
penalty associated with the economic benefit of not installing the new pollution
control equipment sooner. No penalty amount has been discussed,  and the Company
intends to contest any request for a penalty  because the State's  difficulty in
completing its modeling has contributed to the delay in bringing  emissions into
compliance.

     There are no other legal proceedings  pending as of June 30, 2002 which the
Company believes to be material.

ITEM 4.  SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     No matters have been submitted to a vote of stockholders  during the fourth
quarter of fiscal year covered by this report.

ITEM 4A.  EXECUTIVE OFFICERS OF THE REGISTRANT.

     Executive officers of the Company are as follows:



                                        
Name                                Age       Position
- ----                                ---       --------

Cloud L. Cray, Jr.                  79        Chairman of the Board

Laidacker M. Seaberg                56        President, Chief Executive Officer

Sukh Bassi, Ph.D.                   61        Vice President, New Products Innovation and Technology

Robert G. Booe                      65        Vice President, Finance and Administration. Controller,
                                                  Treasurer and Chief Financial Officer

Gerald Lasater                      64        Vice President, International Marketing and Sales


                                       14


Clodualdo "Ody" Maningat, Ph.D.     47        Vice President, Application Technology and Technical
                                                  Services

Marta L. Myers                      42        Secretary and Administrative Assistant to the President

Steven J. Pickman                   49        Vice President, Corporate Communications and Marketing
                                                  Services

David E. Rindom                     47        Vice President, Human Resources

Randy M. Schrick                    52        Vice President, Manufacturing and Engineering

Dennis E. Sprague                   56        Vice President, Operations Services and Resource Planning

William R. Thornton                 50        Vice President, Quality Management

Michael J. Trautschold              54        Executive Vice President, Marketing and Sales


     Mr. Cray,  Jr. has served as Chairman of the Board since 1980. He served as
Chief Executive Officer from 1980 to September, 1988, and has been an officer of
the Company and its affiliates for more than thirty years.

     Mr.  Seaberg  joined the Company in 1969 and has served as the President of
the Company since 1980 and as Chief Executive Officer since September,  1988. He
is the son-in-law of Mr. Cray, Jr.

     Dr.  Bassi has served as Vice  President,  New  Products,  Innovations  and
Technology since July 2002. He was Vice President, Research and Development from
1985 until July 2002 and Vice  President  Specialty  Ingredients  Marketing  and
Sales between 1998 and 2000.  He also  previously  served as Technical  Director
from 1989 to 1998 and Vice President - Vital Wheat Gluten Marketing from 1992 to
1998.  From 1981 to 1992 he was  Manager  of the Vital  Wheat  Gluten  Strategic
Business Unit. He was  previously a professor of biology at Benedictine  College
for ten years.

     Mr.  Booe has  served as Vice  President,  Treasurer  and  Chief  Financial
Officer  of the  Company  since  1988.  He  joined  the  Company  in 1966 as its
Treasurer  and became  the  Controller  and  Treasurer  in 1980.  In 1992 he was
assigned the additional task of Vice President - Administration.

     Mr.  Lasater  joined the Company in 1962. He has served as Vice President -
International  Marketing  and Sales  since 1998.  Previously,  he served as Vice
President - Starch  Marketing from 1992 to 1998. Prior to that he served as Vice
President in charge of the Wheat Starch Strategic Business Unit.

     Dr. Maningat joined the Company in 1986. He has served as Vice President of
Application  Technology and Technical Services since June 2002.  Previously,  he
was Corporate Director of Research and Development and Technical  Marketing from
1997 to 2002. He served as Corporate  Director of Research and  Development  and
Quality Control for the Company from 1993 to 1997.

     Ms.  Myers joined the Company in 1996.  She has served as  Secretary  since
October  1996 and as  Administrative  Assistant  to the  President  since  1999.
Previously she was executive secretary for Superintendent of Schools for Unified
School District 409, Atchison, Kansas.

     Mr.  Pickman  joined the Company in 1985. He has served as Vice  President,
Corporate  Communications  and Marketing  Services  since July 2002. He was Vice
President, Corporate Relations from June 2000 until July 2002. Previously he was
Executive  Director of Corporate  Relations  from 1999 to June 2000 and prior to
that Corporate Director of Public and Investor Relations.  Between 1985 and 1989
he served as the Director of Public Relations and Marketing  Administration  for
the Company's former subsidiary, McCormick Distilling Company, Weston, Missouri.

     Mr.  Rindom  joined the Company in 1980.  He has served as Vice  President,
Human  Resources  since June 2000. He was Corporate  Director of Human Relations
from 1992 to June  2000,  Personnel  Director  from  1988 to 1992


                                       15


and  Assistant Personnel Director from 1984 to 1988.

     Mr.  Schrick,  a Director  since 1987,  joined the Company in 1973.  He has
served as Vice  President,  Manufacturing  and  Engineering  since July 2002. He
served as Vice  President - Operations  from 1992 until July 2002.  From 1984 to
1992 he served as Vice  President and General  Manager of the Pekin plant.  From
1982 to 1984 he was the Plant Manager of the Pekin Plant.  Prior to 1982, he was
Production Manager at the Atchison plant.

     Mr.  Sprague  joined the  Company in  October  1998.  He has served as Vice
President,  Operations Services and Resource Planning since July 2002. He served
as Vice  President,  Alcohol and Feed  Products  Sales from June 2000 until July
2002. Previously, he served as Vice President,  Heritage Product Sales from June
1999 to June 2000 and as Vice  President,  Corporate  Marketing  and Sales  from
October 1998 to June 1999.  Prior to joining the  Company,  he held a variety of
management, sales and plant operations positions with Joseph E. Seagrams & Sons,
Inc.,  last serving as Director of Production  Operations and Planning from 1993
to 1998.

     Mr. Thornton joined the Company in 1994. He has served as Vice President of
Quality  Management  since  June  2000.  He was  Corporate  Director  of Quality
Management from 1997 to June 2000 and Corporate  Director of Continuous  Quality
Improvement from 1994 to 1997.

     Mr.  Trautschold  joined the Company in September 2000. He has served since
then as Executive Vice  President of Marketing and Sales.  He was Vice President
of  Product   Strategy  in  the  Consumer  Direct  Division  of  Schwan's  Sales
Enterprises,  Inc.  from 1999 to  September  2000,  Vice  President of Corporate
Marketing Services for ConAgra,  Inc. from 1994 to 1999 and President of ConAgra
Brands, Inc. from 1997 to 1999.


                                     PART II

ITEM 5.  MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS.

     The Common  Stock of the  Company  has been  traded on the NASDAQ  National
Market System under the symbol MWGP since November 1988. Following the effective
date of its name  change to MGP  Ingredients,  Inc.  on October  10,  2002,  the
Company's  trading  symbol  will be MGPI.  There will be no need for  holders of
Common Stock to exchange their  existing  shares as a result of the name change.
Certificates  bearing the name Midwest Grain Products,  Inc. will continue to be
valid.

     The following  table below  reflects the high and low closing prices of the
Common Stock for each  quarter of fiscal 2001 and 2002.  The Company paid a cash
dividend of $.10 per share in November  2000 and a dividend of $.15 per share in
November  2001.  Previously,  cash  dividends had not been paid since the end of
1995.  Any  future  dividends  will be paid at the  discretion  of the  Board of
Directors,   which  will  consider  various  factors,  including  the  Company's
operating  results  and cash  requirements,  in making any  decision  respecting
dividends.



                                               Sales Price
                                               -----------
                                         High              Low
                                         ----              ---
        2002:
          First Quarter              $   11.05          $    8.65
          Second Quarter                 12.18               9.01
          Third Quarter                  14.73              11.50
          Fourth Quarter                 14.60              12.40

        2001:
          First Quarter              $   11.00          $    8.25
          Second Quarter                 10.25               8.75
          Third Quarter                   9.00               8.25
          Fourth Quarter                 11.25               8.13



                                       16


     At June 30,  2002 there  were  approximately  790  holders of record of the
Company's  Common  Stock.  It is  believed  that  the  Common  Stock  is held by
approximately 1,960 beneficial owners.

     The  following is a summary of  securities  authorized  for issuance  under
equity compensation plans as of June 30, 2002:



                                                                                      
                                                                                                Number of securities
                                                                                              remaining available for
                                      Number of shares to be                                   future issuance under
                                      issued upon exercise of        Weighted average of        equity compensation
                                       outstanding options,           exercise price of           plans (excluding
                                        warrants and rights         outstanding options,      securities reflected in
                                                                     warrants and rights           column (a) (1)
                                                (a)                          (b)                        (c)
- ----------------------------------- ---------------------------- ---------------------------- -------------------------
Equity compensation plans
   approved by shareholders                   805,560                      $11.54                     136,500
Equity compensation plans  not
   approved by security holders                  -                            -                          -
Total                                         805,560                      $11.54                     136,500


(1) Of these securities, as of June 30, 2002 an aggregate of 86,500 shares may
also be issued as performance or restricted stock awards under the terms of
Stock Incentive Plan of 1996 and the 1998 Stock Incentive Plan for Salaried
Employees.

ITEM 6.  SELECTED FINANCIAL DATA.

     Incorporated  by reference to the  information  under  "Selected  Financial
Information"  on page 17 of the Annual Report,  a copy of which page is included
in Exhibit 13 to this Report.

ITEM 7. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

     Incorporated by reference to the information under "MANAGEMENT'S DISCUSSION
AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF  OPERATIONS"  on pages 18
through 27 of the Annual  Report,  copies of which pages are included in Exhibit
13 to this Report.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     Incorporated by reference to the information under "MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL  CONDITION AND RESULTS OF OPERATIONS - MARKET RISK" on
page 26 of the Annual Report,  a copy of which page is included in Exhibit 13 to
this Report.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

     Incorporated  by reference to the  consolidated  financial  statements  and
related notes on pages 28 through 40 of the Annual Report, copies of which pages
are included in Exhibit 13 to this Report.

ITEM  9.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          FINANCIAL DISCLOSURE.

     Not applicable.

                                       17


                                    PART III

ITEM 10.  DIRECTORS OF THE REGISTRANT.

     Incorporated by reference to the information  under "ELECTION OF DIRECTORS"
at  pages  2  through  5  and  "SECTION  16(A)  BENEFICIAL  OWNERSHIP  REPORTING
COMPLIANCE" at page 18 of the Proxy Statement.

ITEM 11.  EXECUTIVE COMPENSATION.

     Incorporated by reference to the information in the second  paragraph under
"CERTAIN  INFORMATION  CONCERNING THE BOARD AND ITS COMMITTEES" at page 5 of the
Proxy Statement and under "EXECUTIVE  COMPENSATION" on pages 8 through 11 of the
Proxy Statement;  the material under the captions "REPORT OF THE HUMAN RESOURCES
COMMITTEE" on pages 13 to 15 and  "PERFORMANCE OF THE COMPANY'S COMMON STOCK" on
page 11 and 12 is not incorporated by reference.

ITEM 12.  SECURITY  OWNERSHIP OF CERTAIN  BENEFICIAL  OWNERS AND  MANAGEMENT AND
          RELATED STOCKHOLDER MATTERS.

     Incorporated by reference to the information under "PRINCIPAL STOCKHOLDERS"
beginning  on  page 16 of the  Proxy  Statement  and to the  table  in the  last
paragraph of Item 5 of this Report.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

     None.


                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

     The following documents are filed as part of this report:

     (a) Financial Statements:

         Auditors' Report on Financial Statements.
         Consolidated Balance Sheets at June 30, 2002, 2001 and 2000.
         Consolidated Statements of Income - for the Three Years Ended
         June 30, 2002, 2001 and 2000. Consolidated Statements of
         Stockholders' Equity for the Three Years Ended June 30, 2002,
         2001 and 2000. Consolidated Statements of Cash Flow - for the
         Three Years Ended June 30, 2002, 2001 and 2000. Notes to
         Consolidated Financial Statements.

     The foregoing have been  incorporated  by reference to the Annual Report as
indicated under Item 8.

     (b) Financial Statement Schedules:

         Auditors' Report on Financial Statement Schedules:
         VIII - Valuation and Qualifying Accounts

     All other  schedules  are omitted  because they are not  applicable  or the
information  is  contained in the  Consolidated  Financial  Statements  or notes
thereto.

     (c) Exhibits:

       Exhibit No.                             Description

         3(a)        Articles of Incorporation  of the Company  (Incorporated by
                     reference  to Exhibit

                                       18

                    3(a) of the Company's Registration Statement No. 33-24398 on
                    Form S-1).

         3(b)        Bylaws of the Company (Incorporated by reference to Exhibit
                     3(b) of the Company's  Registration  Statement No. 33-24398
                     on Form S-1).

         4(a)        Copy  of  Note  Agreement  dated  as  of  August  1,  1993,
                     providing for the issuance and sale of $25 million of 6.68%
                     term notes  ("Term  Notes")  (incorporated  by reference to
                     Exhibit  4.1 to the  Company's  Report on Form 10-Q for the
                     quarter ended September 30, 1993 (file number 0-17196)).

         4(b)        Copy of Term Notes dated August 27, 1993  (incorporated  by
                     reference  to Exhibit 4.2 to the  Company's  Report on Form
                     10-Q for the quarter ended  September 30, 1993 (file number
                     0-17196)).

         4(c)        Copy  of  Sixth  Amended  Line  of  Credit  Loan  Agreement
                     providing  for the Issuance of a Line of Credit Note in the
                     amount of $20,000,000 (incorporated by reference to Exhibit
                     4.1 to the  Company's  Report on Form 10-Q for the  quarter
                     ended December 31, 1999 (file number 0-17196)).

         4(d)        Copy of Line of Credit  Note Under  Sixth  Amended  Line of
                     Credit Loan Agreement (incorporated by reference to Exhibit
                     4.2 to the  Company's  Report on Form 10-Q for the  quarter
                     ended December 31, 1999 (file number 0-17196)).

         4(e)        In  accordance  with Item  601(b)(4)(iii)(A)  of Regulation
                     S-K, certain instruments  respecting  long-term debt of the
                     Registrant  have been  omitted but will be furnished to the
                     Commission upon request.

         9(a)        Copy of Cray Family  Trust  (incorporated  by  reference to
                     Exhibit 1 of  Amendment  No. 1 to Schedule  13D of Cloud L.
                     Cray, Jr. dated November 17, 1995).

         10(a)       Summary  of  informal  cash  bonus  plan  (incorporated  by
                     reference to Exhibit 10(a) to the  Company's  Form 10-K for
                     the year ended June 30, 2001 (file number 0-17196).

         10(b)       Executive  Stock  Bonus  Plan  as  amended  June  15,  1992
                     (incorporated   by  reference  to  Exhibit   10(b)  to  the
                     Company's  Form 10-K for the year ended June 30, 1992 (file
                     number 0-17196)).

         10(c)       Copy of Midwest Grain  Products,  Inc. Stock Incentive Plan
                     of 1996, as amended as of August 26, 1996  (incorporated by
                     reference  to Exhibit A to the  Company's  Notice of Annual
                     Meeting and Proxy Statement filed September 17, 1996).

         10(d)       Copy of amendment to Midwest  Grain  Products,  Inc.  Stock
                     Incentive  Plan  of  1996  (incorporated  by  reference  to
                     Exhibit  10.1 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).

         10(e)       Form of Stock Option with respect to stock options  granted
                     under the Midwest Grain Products, Inc. Stock Incentive Plan
                     of 1996  (incorporated by reference to Exhibit 10(e) to the
                     Company's  Form 10-K for the year ended June 30, 1996 (file
                     number 0-17196)).

         10(f)       Copy of Midwest Grain Products, Inc. 1996 Stock Option Plan
                     for  Outside  Directors,  as amended as of August 26,  1996
                     (incorporated  by reference  to Exhibit B to the  Company's
                     Notice  of  Annual  Meeting  and  Proxy   Statement   filed
                     September 17, 1996).



                                       19


         10(g)       Copy of  amendment to Midwest  Grain  Products,  Inc.  1996
                     Stock Option Plan for Outside  Directors  (incorporated  by
                     reference  to Exhibit 10.2 to the  Company's  Form 10-Q for
                     the  quarter   ended   September   30,  1998  (file  number
                     0-17196)).

         10(h)       Copy of Midwest Grain  Products,  Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Appendix A to the  Company's  Notice of Annual  Meeting and
                     Proxy Statement  dated  September 17, 1998,  filed with the
                     Securities and Exchange Commission on September 15, 1998).

         10(i)       Form of Stock Option with respect to stock options  granted
                     under the Midwest Grain Products, Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Exhibit 10(e) to the Company's Form 10-K for the year ended
                     June 30, l996 (file number 0-17196)).

         10(j)       Copy of amendments  to Options  granted under Midwest Grain
                     Products,   Inc.  Stock  Option  Plans   (incorporated   by
                     reference  to Exhibit 10.3 to the  Company's  Form 10-Q for
                     the  quarter   ended   September   30,  1998  (file  number
                     0-17196)).

         10(k)       Form of Option Agreement for the grant of Options under the
                     Midwest  Grain  Products,  Inc.  1996 Stock Option Plan for
                     Outside Directors, as amended (incorporated by reference to
                     Exhibit  10.4 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).

         10(l)       Form of Amended Option  Agreements for the grant of Options
                     under the Midwest Grain Products, Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Exhibit  10.5 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).

         10(m)       Form of Option Agreement for the grant of Options under the
                     Midwest Grain Products,  Inc. Stock Incentive Plan of 1996,
                     as amended  (incorporated  by  reference to Exhibit 10.6 to
                     the Company's Form 10-Q for the quarter ended September 30,
                     1998 (file number 0-17196)).

         10(n)       Form  of  Incentive  Stock  Option  Agreement  approved  on
                     December  7,  2000,  for use  thereafter  under  the  Stock
                     Incentive  Plan  of  1996  (incorporated  by  reference  to
                     Exhibit  10.1 to the  Company's  Form 10-Q for the  quarter
                     ended December 31, 2000 (file number 0-17196)).

         10(o)       Form  of  Incentive  Stock  Option  Agreement  approved  on
                     December  7, 2000 for use  thereafter  under the 1998 Stock
                     Incentive  Plan for  Salaried  Employees  (incorporated  by
                     reference  to Exhibit 10.2 to the  Company's  Form 10-Q for
                     the quarter ended December 31, 2000 (file number 0-17196)).

         10(p)       Form of Memorandum of Agreement Concerning Options approved
                     on December 7, 2000 between the Company and certain members
                     of  senior   management,   including  the  following  named
                     executive  officers:  Ladd M. Seaberg,  Randall M. Schrick,
                     Robert  G.  Booe,  Dennis E.  Sprague  and Dr.  Sukh  Bassi
                     (incorporated by reference to Exhibit 10.3 to the Company's
                     Form 10-Q for the  quarter  ended  December  31, 2000 (file
                     number 0-17196)).

         10(q)       Form of Lease Agreement dated as of August 1, 2001 among GE
                     Public Finance,  Inc., The Unified  Government of Wyandotte
                     County,  Kansas City,  Kansas,  and Midwest Grain Products,
                     Inc.  (incorporated  by reference  to Exhibit  10.10 to the
                     Company's  Form 10-K for the year ended June 30, 2001 (file
                     number 0-17196).



                                       20


         10(r)       Form of Memorandum of Agreement Concerning Options approved
                     on  December  10,  2001  between  the  Company  and certain
                     members of senior management, including the following named
                     executive  officers:  Ladd  M.  Seaberg,  Robert  G.  Booe,
                     Randall M.  Schrick  and Dr.  Sukh Bassi  (incorporated  by
                     reference to Exhibit 10 to the Company's  form 10-Q for the
                     quarter ended December 31, 2001 (file number 0-17196)).

         *10(s)      Lease  dated  December  16,  1993  between   Midwest  Grain
                     Products, Inc. and Cilcorp Development Services Inc.

         *10(t)      Steam  Heat  Service  Agreement  dated  December  16,  1993
                     between   Midwest   Grain   Products,   Inc.   and  Cilcorp
                     Development Services Inc.


         *10(u)      Cogeneration   Agreement  dated  December  16,  1993  among
                     Midwest  Grain  Products,   Inc.,  Central  Illinois  Light
                     Company and Cilcorp Development Services Inc.

         *13         Information  contained in the Midwest Grain Products,  Inc.
                     2001 Annual  Report to  Stockholders  that is  incorporated
                     herein by reference.

         22          Subsidiaries  of  the  Company  other  than   insignificant
                     subsidiaries:

                                                          State of Incorporation
                             Subsidiary                       or Organization
                             ----------                       ---------------

                     Midwest Grain Pipeline, Inc.                Kansas
                     Midwest Grain Products of Illinois, Inc.    Illinois
                     Kansas City Ingredient Technologies, Inc.   Kansas

        *23          Consent of BKD, LLP.

         25          Powers of Attorney  executed by all officers and  directors
                     of the  Company  who have  signed  this report on Form 10-K
                     (incorporated  by reference to the signature  pages of this
                     report).

        *99.1        CEO   Certification   pursuant   to  Section   906  of  the
                     Sarbanes-Oxley Act of 2002

        *99.2        CFO   Certification   pursuant   to  Section   906  of  the
                     Sarbanes-Oxley Act of 2002

- ------------
*  Filed herewith

     The Company  filed  reports on Form 8-K on May 6 and May 7, 2002  reporting
information under Item 9.


                                       21


                                   SIGNATURES

     Pursuant to  requirements  of Section 13 of the Securities  Exchange Act of
1934,  the  Registrant has duly caused this report to be signed on its behalf by
the undersigned,  thereunto duly authorized,  in the city of Atchison,  State of
Kansas, on this 6th day of September, 2002.

                                          MIDWEST GRAIN PRODUCTS, INC.

                                          By /s/ Laidacker M. Seaberg
                                                 Laidacker M. Seaberg, President


                                POWER OF ATTORNEY

     KNOW ALL MEN BY THESE PRESENTS,  that each person whose  signature  appears
below  constitutes  and appoints  Cloud L. Cray,  Jr.,  Laidacker M. Seaberg and
Robert  G.  Booe and each of them,  his true and  lawful  attorneys-in-fact  and
agents, with full power of substitution and re-substitution,  for him and in his
name, place and stead, in any and all capacities, to sign any and all reports of
the  Registrant on Form 10-K and to sign any and all  amendments to such reports
and to file  the  same  with  all  exhibits  thereto,  and  other  documents  in
connection therewith,  with the Securities & Exchange Commission,  granting unto
said attorneys-in-fact and agents, and each of them, full power and authority to
do and perform each and every act and thing requisite or necessary to be done in
and about the  premises,  as fully to all  intents  and  purposes as he might or
could  do  in  person,   hereby   ratifying   and   confirming   all  that  said
attorneys-in-fact  and  agents  or any of them,  or their or his  substitute  or
substitutes, may lawfully do or cause to be done by virtue hereof.

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant in the capacities indicated on the dates indicated.

                                                                                         
         Name                               Title                                              Date
         ----                               -----                                              ----

/s/Laidacker M. Seaberg                     President (Principal                        September 6, 2002
Laidacker M. Seaberg                        Executive Officer) and Director

/s/Robert G. Booe                           Vice President, Treasurer                   September 6, 2002
Robert G. Booe                              and Controller (Principal
                                            Financial and Accounting Officer)

/s/Michael Braude                           Director                                    September 6, 2002
Michael Braude

/s/Cloud L. Cray, Jr.                       Director                                    September 6, 2002
Cloud L. Cray, Jr.

/s/Michael R. Haverty                       Director                                    September 6, 2002
Michael R. Haverty

/s/Linda E. Miller                          Director                                    September 6, 2002
Linda E. Miller

/s/Robert J. Reintjes                       Director                                    September 6, 2002
Robert J. Reintjes

/s/Randy M. Schrick                         Director                                    September 6, 2002
Randy M. Schrick



                                       22

/s/Daryl R. Schaller                        Director                                    September 6, 2002
Daryl R. Schaller

/s/James A. Schlindwein                     Director                                    September 6, 2002
James A. Schlindwein


CERTIFICATIONS

     I, Laidacker M. Seaberg, certify that:

     1. I have  reviewed  this  annual  report  on Form  10-K of  Midwest  Grain
Products, Inc.;

     2. Based on my  knowledge,  this annual  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;


Date: September 6, 2002

                                            /s/ Laidacker M. Seaberg
                                                Laidacker M. Seaberg
                                                President and Chief Executive
                                                Officer


     I, Robert G. Booe, certify that:

     1. I have  reviewed  this  annual  report  on Form  10-K of  Midwest  Grain
Products, Inc.;

     2. Based on my  knowledge,  this annual  report does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made,  not  misleading  with  respect to the period  covered by this annual
report;

     3. Based on my knowledge,  the financial  statements,  and other  financial
information  included  in this annual  report,  fairly  present in all  material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this annual report;


Date: September 6, 2002

                                                /s/  Robert G. Booe
                                                     Robert G. Booe
                                                     Vice President and Chief
                                                     Financial Officer


                                       23


                          MIDWEST GRAIN PRODUCTS, INC.

                   Consolidated Financial Statement Schedules
                                   (Form 10-K)

                          June 30, 2002, 2001, and 2000
                         (With Auditors' Report Thereon)


                                       S-1


BKD, LLP                                        Twelve Wyandotte Plaza
                                                120 West 12th Street, Suite 1200
                                                Kansas City, MO 64105-1936
- --------------------------------------------------------------------------------
                                                        bkd.com

                        REPORT OF INDEPENDENT ACCOUNTANTS
                         ON FINANCIAL STATEMENT SCHEDULE


Board of Directors and Stockholders
Midwest Grain Products, Inc.
Atchison, Kansas


     In connection with our audit of the  consolidated  financial  statements of
MIDWEST  GRAIN  PRODUCTS,  INC.  for each of the three years in the period ended
June 30, 2002, we have also audited the following  financial statement schedule.
This  financial  statement  schedule  is the  responsibility  of  the  Company's
management.  Our  responsibility  is to express  an  opinion  on this  financial
statement  schedule based on our audits of the basic financial  statements.  The
schedule is presented for purposes of complying with the Securities and Exchange
Commission's   rules  and  regulations  and  is  not  a  required  part  of  the
consolidated financial statements.

     In our opinion,  the financial  statement  schedule referred to above, when
considered  in  relation  to the basic  financial  statements  taken as a whole,
presents  fairly,  in all  material  respects,  the  information  required to be
included therein.


                                                /s/ BKD, LLP

Kansas City, Missouri
August 2, 2002
Member of Moores Rowland International

                                       S-2



                          MIDWEST GRAIN PRODUCTS, INC.

                     VIII. VALUATION AND QUALIFYING ACCOUNTS




                                                                                   
                           Balance,         Charged to        Charged                             Balance,
                           Beginning        Costs and         to Other                            End of
                           Of Period        Expenses          Accounts          Write-Offs        Period
                           ---------        --------          --------          ----------        ------
                                                     (In Thousands)
Year Ended
June 30, 2002
  Allowance for
  doubtful
  accounts                    $252           $473               --                  $473           $252

Year Ended
June 30, 2001
  Allowance for
  doubtful
  accounts                     252             82               ---                   82            252

Year Ended
June 30, 2000
  Allowance for
  doubtful
  accounts                      285           202               ---                  235            252




                                       S-3


                                  EXHIBIT INDEX

      Exhibit No.                      Description
      -----------                      -----------

         3(a)        Articles of Incorporation  of the Company  (Incorporated by
                     reference  to Exhibit  3(a) of the  Company's  Registration
                     Statement No. 33-24398 on Form S-1).

         3(b)        Bylaws of the Company (Incorporated by reference to Exhibit
                     3(b) of the Company's  Registration  Statement No. 33-24398
                     on Form S-1).

         4(a)        Copy  of  Note  Agreement  dated  as  of  August  1,  1993,
                     providing for the issuance and sale of $25 million of 6.68%
                     term notes  ("Term  Notes")  (incorporated  by reference to
                     Exhibit  4.1 to the  Company's  Report on Form 10-Q for the
                     quarter ended September 30, 1993 (file number 0-17196)).

         4(b)        Copy of Term Notes dated August 27, 1993  (incorporated  by
                     reference  to Exhibit 4.2 to the  Company's  Report on Form
                     10-Q for the quarter ended  September 30, 1993 (file number
                     0-17196)).

         4(c)        Copy  of  Sixth  Amended  Line  of  Credit  Loan  Agreement
                     providing  for the Issuance of a Line of Credit Note in the
                     amount of $20,000,000 (incorporated by reference to Exhibit
                     4.1 to the  Company's  Report on Form 10-Q for the  quarter
                     ended December 31, 1999 (file number 0-17196)).

         4(d)        Copy of Line of Credit  Note Under  Sixth  Amended  Line of
                     Credit Loan Agreement (incorporated by reference to Exhibit
                     4.2 to the  Company's  Report on Form 10-Q for the  quarter
                     ended December 31, 1999 (file number 0-17196)).

         4(e)        In  accordance  with Item  601(b)(4)(iii)(A)  of Regulation
                     S-K, certain instruments  respecting  long-term debt of the
                     Registrant  have been  omitted but will be furnished to the
                     Commission upon request.

         9(a)        Copy of Cray Family  Trust  (incorporated  by  reference to
                     Exhibit 1 of  Amendment  No. 1 to Schedule  13D of Cloud L.
                     Cray, Jr. dated November 17, 1995).

         10(a)       Summary of  informal  cash  bonus  plan.  (incorporated  by
                     reference to Exhibit 10(a) to the  Company's  Form 10-K for
                     the year ended June 30, 2001 (file number 0-17196).

         10(b)       Executive  Stock  Bonus  Plan  as  amended  June  15,  1992
                     (incorporated   by  reference  to  Exhibit   10(b)  to  the
                     Company's  Form 10-K for the year ended June 30, 1992 (file
                     number 0-17196)).

         10(c)       Copy of Midwest Grain  Products,  Inc. Stock Incentive Plan
                     of 1996, as amended as of August 26, 1996  (incorporated by
                     reference  to Exhibit A to the  Company's  Notice of Annual
                     Meeting and Proxy Statement filed September 17, 1996.

         10(d)       Copy of amendment to Midwest  Grain  Products,  Inc.  Stock
                     Incentive  Plan  of  1996  (incorporated  by  reference  to
                     Exhibit  10.1 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).


         10(e)       Form of Stock Option with respect to stock options  granted
                     under the Midwest Grain Products, Inc. Stock Incentive Plan
                     of 1996  (incorporated by reference to Exhibit 10(e) to the
                     Company's  Form 10-K for the year ended June 30, 1996 (file
                     number 0-17196)).

         10(f)       Copy of Midwest Grain Products, Inc. 1996 Stock Option Plan
                     for  Outside  Directors,  as amended as of August 26,  1996
                     (incorporated  by reference  to Exhibit B to the  Company's
                     Notice  of  Annual  Meeting  and  Proxy   Statement   filed
                     September 17, 1996.

         10(g)       Copy of  amendment to Midwest  Grain  Products,  Inc.  1996
                     Stock Option Plan for Outside  Directors  (incorporated  by
                     reference  to Exhibit 10.2 to the  Company's  Form 10-Q for
                     the  quarter   ended   September   30,  1998  (file  number
                     0-17196)).

         10(h)       Copy of Midwest Grain  Products,  Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Appendix A to the  Company's  Notice of Annual  Meeting and
                     Proxy Statement  dated  September 17, 1998,  filed with the
                     Securities and Exchange Commission on September 15, 1998).

         10(i)       Form of Stock Option with respect to stock options  granted
                     under the Midwest Grain Products, Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Exhibit 10(e) to the Company's Form 10-K for the year ended
                     June 30, l996 (file number 0-17196)).

         10(j)       Copy of amendments  to Options  granted under Midwest Grain
                     Products,   Inc.  Stock  Option  Plans   (incorporated   by
                     reference  to Exhibit 10.3 to the  Company's  Form 10-Q for
                     the  quarter   ended   September   30,  1998  (file  number
                     0-17196)).

         10(k)       Form of Option Agreement for the grant of Options under the
                     Midwest  Grain  Products,  Inc.  1996 Stock Option Plan for
                     Outside Directors, as amended (incorporated by reference to
                     Exhibit  10.4 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).

         10(l)       Form of Amended Option  Agreements for the grant of Options
                     under the Midwest Grain Products, Inc. 1998 Stock Incentive
                     Plan for Salaried  Employees  (incorporated by reference to
                     Exhibit  10.5 to the  Company's  Form 10-Q for the  quarter
                     ended September 30, 1998 (file number 0-17196)).

         10(m)       Form of Option Agreement for the grant of Options under the
                     Midwest Grain Products,  Inc. Stock Incentive Plan of 1996,
                     as amended  (incorporated  by  reference to Exhibit 10.6 to
                     the Company's Form 10-Q for the quarter ended September 30,
                     1998 (file number 0-17196)).

         10(n)       Form  of  Incentive  Stock  Option  Agreement  approved  on
                     December  7, 2000 for use  thereafter  under the 1998 Stock
                     Incentive  Plan  of  1996  (incorporated  by  reference  to
                     Exhibit  10.1 to the  Company's  Form 10-Q for the  quarter
                     ended December 31, 2000 (file number 0-17196)).

         10(o)       Form  of  Incentive  Stock  Option  Agreement  approved  on
                     December  7, 2000 for use  thereafter  under the 1998 Stock
                     Incentive  Plan for  Salaried  Employees  (incorporated  by
                     reference  to Exhibit 10.2 to the  Company's  Form 10-Q for
                     the quarter ended December 31, 2000 (file number 0-17196)).



         10(p)       Form of Memorandum of Agreement Concerning Options approved
                     on December 7, 2000 between the Company and certain members
                     of  senior   management,   including  the  following  named
                     executive  officers:  Ladd M. Seaberg,  Randall M. Schrick,
                     Robert  G.  Booe,  Dennis E.  Sprague  and Dr.  Sukh  Bassi
                     incorporated  by reference to Exhibit 10.3 to the Company's
                     Form 10-Q for the  quarter  ended  December  31, 2000 (file
                     number 0-17196)).

         10(q)       Form of Lease Agreement dated as of August 1, 2001 among GE
                     Public Finance,  Inc., The Unified  Government of Wyandotte
                     County,  Kansas City,  Kansas,  and Midwest Grain Products,
                     Inc.  (incorporated  by reference  to Exhibit  10.10 to the
                     Company's  Form 10-K for the year ended June 30, 2001 (file
                     number (0-17196)).

         10(r)       Form of Memorandum of Agreement Concerning Options approved
                     on  December  10,  2001  between  the  Company  and certain
                     members of senior management, including the following named
                     executive  officers:  Ladd  M.  Seaberg,  Robert  G.  Booe,
                     Randall M.  Schrick  and Dr.  Sukh Bassi  (incorporated  by
                     reference to Exhibit 10 to the Company's  form 10-Q for the
                     quarter ended December 31, 2001 (file number 0-17196)).

        *10(s)       Lease  dated  December  16,  1993  between   Midwest  Grain
                     Products, Inc. and Cilcorp Development Services Inc.

        *10(t)       Steam  Heat  Service  Agreement  dated  December  16,  1993
                     between   Midwest   Grain   Products,   Inc.   and  Cilcorp
                     Development Services Inc.

        *10(u)       Cogeneration   Agreement  dated  December  16,  1993  among
                     Midwest  Grain  Products,   Inc.,  Central  Illinois  Light
                     Company and Cilcorp Development Services Inc.

        *13          Information  contained in the Midwest Grain Products,  Inc.
                     2001 Annual  Report to  Stockholders  that is  incorporated
                     herein by reference.

         22          Subsidiaries  of  the  Company  other  than   insignificant
                     subsidiaries:

                                                                 State of
                                                                 Incorporation
                     Subsidiary                                  or Organization
                     ----------                                  ---------------

                     Midwest Grain Pipeline, Inc.                Kansas
                     Midwest Grain Products of Illinois, Inc.    Illinois
                     Kansas City Ingredient Technologies, Inc    Kansas

         *23         Consent of BKD, LLP.

         25          Powers of Attorney  executed by all officers and  directors
                     of the  Company  who have  signed  this report on Form 10-K
                     (incorporated  by reference to the signature  pages of this
                     report).


         *99.1       CEO   Certification   pursuant   to  Section   906  of  the
                     Sarbanes-Oxley Act of 2002

         *99.2       CFO   Certification   pursuant   to  Section   906  of  the
                     Sarbanes-Oxley Act of 2002

- ------------
*  Filed herewith

The  Company  filed  reports  on  Form  8-K on May 6 and May 7,  2002  reporting
information under Item 9.