EXHIBIT 20 LETTER TO STOCKHOLDERS RE 3RD QTR 98

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