Exhibit 20
November 10, 1998

Dear Stockholder:

  I am pleased to report that our Company's  performance in the first quarter of
fiscal 1999 resulted in a substantial improvement over the same period the prior
year. In addition,  the most recent government  statistics  indicate that in the
five months since the implementation of a three-year quota on imports of foreign
wheat gluten on June 1, the European Union (E.U.) has  essentially met its first
year quota of 54 million pounds. That amount is equivalent to just over half the
record  annual  amount which the E.U.  shipped into the United  States in fiscal
1998.
   With the E.U.'s quota for the initial 12-month quota period that ends May 31,
1999 now filled, a more fair and stable competitive  environment should exist in
the U.S.  wheat gluten  market for much of the  remainder of our current  fiscal
year.
  We ended this year's first  quarter with net income of $666,000,  or $0.07 per
share,  on sales of  $51,938,000  versus a net loss of  $235,000,  or $0.02  per
share, on sales of $57,623,000 for the first quarter of fiscal 1998. Lower grain
costs and increased  productivity,  which was  influenced  by heightened  market
interest  in our  wheat  gluten  products,  were  mainly  responsible  for  this
turnaround.
  Prices for wheat, corn and milo, our principal raw materials,  declined as the
result of this year's bumper harvests in the U.S.  Productivity  improved as the
result of increased wheat gluten  production in response to strengthened  demand
and in preparation  for  effectively  satisfying  customer  needs  following the
expected reduction in imports of subsidized and artificially-priced E.U. gluten.
Additionally,  our sales of specialty wheat gluten products  experienced  growth
during the quarter, contributing to our overall increase in gluten output.
  Although our  production  of wheat starch was down  compared to a year ago, it
was considerably higher than the amount produced in the fourth quarter of fiscal
1998.  While this increase  resulted from a rise in sales of non-modified  wheat
starch,  we currently are  experiencing  strengthened  sales of our  value-added
modified starches as well.
  Demand for our food grade alcohol fell below last year's first quarter  level,
resulting in price and volume  decreases  in the  beverage  category and reduced
unit  sales  for  industrial  applications.   Beverage  alcohol  selling  prices
primarily  followed the decline in raw material  costs for grain,  but were also
affected by increased  alcohol supplies  throughout the industry.  Unit sales of
our fuel grade  alcohol were  essentially  even with sales a year ago.  However,
selling  prices for this  product  declined,  keeping  pace with a  downturn  in
gasoline  prices.  Optimizing  our  distillery  operations  to achieve  improved
efficiencies  and increasing sales of food grade alcohol as conditions allow are
among our top priorities at this time.
  Our other  principal  priorities  are to steadily  increase our production and
sales of vital  wheat  gluten as the  effects of the import  quota  continue  to
materialize;  make major market  penetrations for our new specialty wheat gluten
products through extensive  marketing and promotional  programs;  and expand our
sales of modified wheat starch to new areas of the food market. By meeting these
goals and  realizing  stable or lower raw  material  costs for grain,  favorable
results should continue in the current quarter and beyond.

Sincerely,

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