Exhibit 20
May 8, 1997

Dear Stockholder:

While we currently are experiencing much improved operational efficiencies,  our
Company's  results  for the third  quarter  of  fiscal  1997  were  weakened  by
competitive  pressures in our vital wheat gluten and food grade alcohol markets.
In addition,  our energy costs remained  considerably  higher than normal during
the first two  months of the  quarter  due to an unusual  spike in  natural  gas
prices.

A return to more  normal  energy  costs,  and  significantly  lower  grain costs
compared to a year ago are allowing us to strengthen our  competitive  abilities
through increased production output and efficiencies. In general, conditions for
improved profitability in the fourth quarter are firmly taking shape.

Our net income in the third quarter  amounted to $3,000 on sales of  $54,449,000
compared to a net loss of $410,000,  or $0.04 per share, on sales of $53,871,000
for the same period the prior year.

For the first nine months of fiscal 1997,  our net income totaled  $862,000,  or
$0.09  per  share,  on sales of  $162,871,000.  This  represents  a  substantial
improvement over the first nine months of fiscal 1996, when we experienced a net
loss of $2,592,000, or $0.27 per share, on sales of $156,782,000.

Increased supplies of alcohol in this year's third quarter,  which resulted from
the start-up of new production capacities throughout the industry, caused prices
for our food grade alcohol to decline from their second quarter  levels.  Prices
for fuel grade alcohol, as well as food grade alcohol for beverage applications,
also fell below the prior year's third quarter levels.

Increased  imports from the European  Union  (E.U.)  continued to depress  wheat
gluten  prices in the third  quarter.  The recent  initiation  of a Section  301
investigation by U.S. Trade  Representative-Designate  Charlene Barshefsky could
help correct this problem by targeting certain E.U. starch/gluten  subsidies. In
addition,  the possibility still exists for a bilateral  solution to this unfair
trade problem through  consultations arising from the 1995 grains agreement with
the E.U.

I encourage you to take a few moments to write to the Trade  Representative
and to U.S.  Secretary of  Agriculture  Dan Glickman  requesting  that immediate
action  be taken to  eliminate  the  E.U.'s  lopsided  trade  advantages.  These
advantages  include various subsidies and incentives which can be manipulated at
will,  plus a wide  difference  between our  country's  low tariff rates and the
E.U.'s  high  tariffs,  which  effectively  prohibit  outside  competition  from
entering the E.U.'s highly protected market. Ambassador Barshefsky's address is:
Office of the U.S.  Trade  Representative,  600 South 17th St.  N.W.,  Room 201,
Washington,  D.C. 20508.  Secretary  Glickman's  address is: U.S.  Department of
Agriculture,   14th  St.  and  Independence   Ave.,   Washington,   D.C.  20250.
Incidentally,  recent news  reports  point out that U.S.  flour  exporters  face
similar  trade  inequities  resulting  from many of the same E.U.  policies that
affect American gluten/starch manufacturers.

While working diligently to solve this problem, we are also placing considerable
focus on the  development  and  marketing of new specialty  gluten  products for
industrial  as well as  food  applications.  Likewise,  we  continue  to see new
opportunities for growth in our premium wheat starch market,  which should allow
us to more fully utilize the expanded capacity that was  strategically  added to
our Pekin, Illinois plant nearly a year and a half ago. In conclusion, we expect
to  improve  our  profitability  by  increasing   production  and  strengthening
efficiencies in all areas as conditions allow.

Sincerely,

s/Ladd M. Seaberg
Ladd M. Seaberg
President and CEO