Exhibit 20
February 11, 1998

Dear Stockholder:

A  recently  announced  decision  by  the  United  States   International  Trade
Commission  (ITC) has  taken us a big step  forward  in our  quest to  alleviate
unfair  competitive  pressures  from foreign  wheat gluten  producers.  However,
imports of  artificially  priced  wheat  gluten from the  European  Union (E.U.)
continued to adversely  affect our results  during the second  quarter of fiscal
1998.

Our net income for the quarter  was  $107,000,  or $0.01 per share,  on sales of
$55,847,000.  In the  second  quarter  of  fiscal  1997,  we had net  income  of
$1,205,000, or $0.12 per share, on sales of $55,249,000.

For the first six months of fiscal 1998, we incurred a net loss of $128,000,  or
$0.01 per share, on sales of  $113,470,000,  compared to net income of $859,000,
or $0.09 per share, on sales of $108,422,000  for the first six months of fiscal
1997.

I am pleased and  encouraged by the ITC's 3-0 vote on January 15 affirming  that
the U.S.  wheat  gluten  industry  has been  seriously  injured by wheat  gluten
imports from foreign countries. This decision officially confirms the reason for
the negative  trend in sales of U.S.-made  wheat  gluten,  and  strengthens  the
probability of relief. Upon making the injury determination, the ITC immediately
began a remedy phase,  which is scheduled to conclude on March 18. At that time,
the ITC will forward its recommendation to the President,  who then will have up
to two months to take final action.

The process leading up to the injury  determination  was initiated by a petition
that was filed by the Wheat Gluten Industry Council of the U.S. on September 19.
The petition was filed under  Section 201 of the Trade Act of 1974 and seeks the
establishment of quotas during a four-year period for countries  exporting wheat
gluten to the U.S.

Such a measure would help to ensure that fairness and stability are brought back
to the marketplace.  It would give U.S.  producers time to pursue a more lasting
solution through future negotiations. It also would allow us to more effectively
develop  and market  value added wheat  gluten  products,  goals which have been
hindered by the massive onslaught of imports from the E.U. Basically,  as I have
emphasized  in the past,  all that we truly are seeking  through this process is
the opportunity to compete on equal footing in a fair market environment.

Our sales of alcohol  products  in the second  quarter  increased  over the same
period a year ago, principally as the result of an expanded presence in the fuel
grade  alcohol  market.  Prices  for our food grade  alcohol  for  beverage  and
industrial applications declined substantially compared to the second quarter of
fiscal  1997.  This was due to a  combination  of  seasonal  factors,  lower raw
material  costs  for  corn and  milo,  and  increased  supplies  throughout  the
industry. Prices for fuel grade alcohol dropped also, tracking a recent downturn
in gasoline  prices.  Lower  selling  prices for our premium wheat starch offset
increased  volume  sales of this  product in the  second  quarter.  The  reduced
selling prices  primarily were due to a change in our sales mix of  non-modified
and modified specialty wheat starches.



Looking  ahead,  we plan to  continue  working  toward the  optimization  of our
alcohol and wheat starch  production  capabilities  as conditions  warrant.  The
utilization of our wheat gluten capacity remains strategically regulated at this
time to  minimize  the  adverse  effects of imports  from the E.U.  Be  assured,
however, that we are prepared to significantly increase production with a return
to more equitable competitive conditions in the marketplace.

Sincerely,

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