February 10, 1999                                                     Exhibit 20

Dear Stockholder:

  Our results for the second  quarter of fiscal 1999 showed a sizeable  increase
in earnings  compared to the same period the prior year. We finished the quarter
with net  income of  $1,430,000,  or $0.15 per  share,  on sales of  $53,917,000
versus net income of $107,000,  or $0.01 per share,  on sales of $55,847,000 for
the second quarter of fiscal 1998. Our total net income for the first six months
of fiscal 1999 was  $2,096,000,  or $0.22 per share,  on sales of  $105,855,000.
That  compares  to a net loss of  $128,000,  or  $0.01  per  share,  on sales of
$113,470,000 that we experienced in the first six months of fiscal 1998.
  The  improvement  in the second  quarter,  as well as the entire first half of
fiscal 1999,  primarily  was due to lower prices for wheat,  corn and milo,  our
principal raw materials. A rise in productivity, resulting mainly from increased
production  of vital wheat  gluten,  contributed  to the upturn.  This  increase
occurred as we continued to make  preparations to effectively  satisfy  customer
needs  resulting  from the  expected  reduction  in  imports of  subsidized  and
artificially-priced wheat gluten from the European Union (E.U.).
  As previously announced, a three-year quota on imports of foreign wheat gluten
became  effective  on June 1, 1998.  Under the quota,  imports from the E.U. are
limited  to 54 million  pounds  for the  12-month  period  ending May 31,  1999.
However, Department of Commerce data indicates that from June 1 through November
30, 1998, the E.U. had shipped  approximately 26% more gluten into the U.S. than
allowed for the full quota year. Although the available published data indicates
that shipments from the E.U. have stopped after  November,  the violations  have
stalled the relief that the U.S. wheat gluten  industry has expected  during the
first year of the quota. As a consequence,  U.S. Customs officials are presently
investigating these apparent E.U.  violations,  and the Office of the U.S. Trade
Representative  is considering the imposition of sanctions,  which could provide
the industry with the kind of relief intended by the quota.
  Although the tilt in the playing  field was not corrected in the first half of
the current fiscal year, we are now  experiencing  indications  of  strengthened
demand for our wheat gluten and continue to realize gradual but steady growth in
sales of our specialty wheat proteins,  especially in the cosmetics and personal
care markets.
   While our production of wheat starch underwent a modest decline compared to a
year ago,  sales of our  value-added  modified  wheat  starches  increased  as a
percentage of total starch sales. This strategically  planned growth in modified
starch sales currently continues to build momentum.
  Production of our food grade alcohol for beverage and industrial  applications
remained  essentially  consistent  with levels  produced during the prior year's
second  quarter.  Selling  prices fell,  however,  following  the decline in raw
material  costs for grain.  Prices were also  affected by a flattening in demand
due to the continuation of increased  alcohol supplies  throughout the industry.
Production  of our fuel grade  alcohol  climbed  compared  to a year ago.  While
selling prices for this product improved  compared to this year's first quarter,
they were down from levels  experienced during last year's second quarter as the
result of lower gasoline prices. Conditions in all of our alcohol markets remain
unchanged  at this time.  As such,  we continue to focus on internal  methods to
better optimize our distillery operations to achieve improved efficiencies.
  Overall,  I am pleased and encouraged by the upward direction our results have
taken, and excited about our ability to maintain  improved  profitability  going
forward.
Sincerely,

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