Exhibit 20
May 7, 1998

Dear Stockholder:

The recent unanimous  recommendation  by the United States  International  Trade
Commission  (ITC)  that  President  Clinton  impose a quota on  imports of wheat
gluten  is  extremely  encouraging.  While  there  is no  certainty  as to  what
direction the  President's  decision later this month might take, we consider it
essential  to be poised to respond  immediately  to the  effects of a  favorable
outcome.  During the third quarter,  therefore,  we increased the utilization of
our gluten production capacity in the face of existing adverse conditions caused
by unfair  competition  from the European Union. As a result,  our third quarter
earnings  peformance  was negatively  affected.  We ended the quarter with a net
loss of $438,000,  or $0.05 per share, on sales of $53,310,000,  compared to net
income of $3,000 on sales of  $54,449,000  for the third quarter of fiscal 1997.
For the first nine  months of fiscal  1998,  we had a net loss of  $566,000,  or
$0.06 per share,  on sales of  $166,780,000,  versus net income of $862,000,  or
$0.09 per share on sales of $162,871,000.

A determination from the President  regarding the ITC's quota  recommedation had
previously  been  expected  to  occur in mid May.  However,  due to an  extended
information  gathering process, the determination has been delayed until the end
of the month.

As previously  reported,  the ITC included in its recommendation that a separate
quota  be  established  for  the  European  Union,   "taking  into  account  the
disproportional  growth  and the  impact of  imports  of wheat  gluten  from the
European Union."  Commissioners  also recommended that "the President  undertake
international  negotiations  to address the underlying  cause of the increase in
imports of wheat gluten or  otherwise  to  alleviate  the injury to the domestic
industry."

The recommended quota would be placed in effect for a four-year period, with the
base amount in the first year  increasing by a modest  percentage in each of the
following  three years.  This manner of relief will allow us to not only compete
on a more level playing field in the regular wheat gluten  market,  but also the
ability to more aggressively develop, produce and market increased quantities of
modified wheat gluten products in an array of exciting  value-added  niches. The
growth  potential of these  products in both food and non-food  applications  is
quite  promising,  as  demonstrated by the strong interest they continue to gain
through  increased  exposure.  The quota's  time frame will provide an effective
adjustment period to turn that interest into  significant,  tangible results for
the  long-term.  You can assist in  achieving  this goal by writing to President
Clinton and urging him to implement  the ITC's  recommendation.  Write to him at
The White House, Washington, DC 20500.

As  occurred  during the  second  quarter of this  fiscal  year,  demand for our
alcohol products softened in the third quarter,  causing price declines compared
to the same period of fiscal  1997.  The onset of these  conditions  in the food
grade  beverage  and  industrial  alcohol  markets  was due mainly to  increased
supplies throughout the industry combined with seasonal factors.  Lower gasoline
prices  principally  accounted  for the  decline in fuel grade  alcohol  prices.
Presently,  we are experiencing  indications  that improved  conditions for food
grade alcohol may start to materialize later in the current quarter.

We also are experiencing  healthy conditions in our premium wheat starch market,
and continue to pursue new  opportunities  to serve customers whose products can
benefit from our value-added modified starches.  This both reflects and supports
our strategy to increasingly develop our presence in specialty markets,  wherein
substantial growth for the future can be realized.

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