SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998


[ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO ________________


                          Commission File No. 333-22997

                           ORGANIC FOOD PRODUCTS, INC.
                           ---------------------------
        (Exact name of small business issuer as specified in its Charter)

             California                                    94-3076294
             ----------                                    ----------
(State or other jurisdiction of incorporation   (I.R.S. Employer Identification
or organization)                                              Number)

550 Monterey Road, Suite B
Morgan Hill, California                                       95037
-----------------------                                       -----
(Address of principal executive offices)                   (Zip Code)

                                 (408) 782-1133
                            -------------------------
                            Issuer's telephone number

Check whether the registrant  (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days. Yes [ X ] No
[ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan conformed by court. Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: Common Stock, no par value, 7,235,113
shares as of March 31, 1998.

Transitional Small Business Disclosure Format: Yes [  ]  No [ X ]


<PAGE>
                


                           ORGANIC FOOD PRODUCTS, INC.
                                 BALANCE SHEETS

                                     ASSETS

                                                   March 31,         June 30,
                                                     1998             1997
                                                 ------------      ------------
                                                 (Unaudited)
Current Assets:
   Cash                                          $        201      $     62,925
   Accounts receivable, net                         1,397,617         1,343,891
   Inventory - Trade                                4,076,849         3,451,698
   Inventory - Other (Note 6)                         508,031              --
   Prepaid expenses                                   111,531            35,447
   Advances to shareholder                            147,000            84,000
   Income tax refund receivable                          --             167,694
   Deferred tax asset                                  86,000            86,000
                                                 ------------      ------------

              Total Current Assets                  6,327,229         5,231,655
                                                 ------------      ------------


Property and Equipment:
   Computer software                                  105,035            71,008
   Leasehold improvements                             162,392           151,668
   Machinery and equipment                          1,354,457           884,240
   Office equipment                                    68,837            61,256
   Printing plates                                     24,784            12,997
   Vehicles                                            19,542            13,314
                                                 ------------      ------------
                                                    1,735,047         1,194,483
   Less: accumulated depreciation                    (333,294)         (182,057)
                                                 ------------      ------------

                                                    1,401,753         1,012,426
                                                 ------------      ------------

Other Assets:
   Deposits and other                                 268,600             8,378
   Deferred offering costs                               --             421,338
   Goodwill, net                                    3,900,456         2,277,288
                                                 ------------      ------------

                                                    4,169,056         2,707,004
                                                 ------------      ------------

        Total Assets                             $ 11,898,038      $  8,951,085
                                                 ============      ============


                   The Accompanying Notes are an Integral Part
                           of the Financial Statements



<PAGE>


                           ORGANIC FOOD PRODUCTS, INC.
                           BALANCE SHEETS (Continued)

                      LIABILITIES AND SHAREHOLDERS' EQUITY


                                                    March 31,        June 30,
                                                      1998             1997
                                                  -----------      ------------
                                                   (Unaudited)
Current Liabilities:
   Notes payable - current portion                $  1,109,309     $  1,824,938
   Notes payable - related parties -
     current portion                                   459,925        1,749,323
   Capital lease obligations - current
     portion                                             4,396            6,033
   Accounts payable                                  1,851,017        2,074,506
   Accrued wages and taxes                              73,274           22,867
   Accrued commissions                                  32,000           40,610
                                                  ------------     ------------

          Total Current Liabilities                  3,529,921        5,718,277
                                                  ------------     ------------

Long-Term Liabilities:
   Notes payable - related parties
     - long-term portion                               230,669          497,237
   Capital lease obligations - long-term
     portion                                            14,401           17,094
   Deferred income taxes payable                          --            102,000
                                                  ------------     ------------

                                                       245,070          616,331
                                                  ------------     ------------


Shareholders' Equity: (Note 2)
   Common stock                                     10,201,146        3,971,720
   Accumulated deficit from S Corporation           (1,410,410)      (1,410,410)
   Retained earnings                                  (667,689)          55,167
                                                  ------------     ------------

                                                     8,123,047        2,616,477
                                                  ------------     ------------
       Total Liabilities and
         Shareholders' Equity                     $ 11,898,038     $  8,951,085
                                                  ============     ============












                   The Accompanying Notes are an Integral Part
                           of the Financial Statements



<PAGE>
<TABLE>
<CAPTION>

                                                 ORGANIC FOOD PRODUCTS, INC.
                                                  STATEMENTS OF OPERATIONS



                                                  Nine Months Ended                        Three Months Ended
                                       ---------------------------------           --------------------------------
                                          March 31,             March 31,            March 31,           March 31,
                                           1998                  1997                  1998                 1997
                                       -----------           -----------           -----------           ----------
                                                  (Unaudited)                                 (Unaudited)

<S>                                    <C>                   <C>                   <C>                   <C>        
Revenues                               $ 8,207,704           $ 9,067,049           $ 2,568,043           $ 2,589,422

Cost of Goods Sold                       6,054,441             6,085,139             1,972,338             1,602,822
                                       -----------           -----------           -----------           -----------
Gross Profit                             2,153,263             2,981,910               595,705               986,600
                                       -----------           -----------           -----------           -----------
Sales and Marketing Expense              2,232,404             1,497,059               656,839               543,402

General and Administrative
  Expenses                                 771,956               896,711               311,047               442,003
                                       -----------           -----------           -----------           -----------

                                         3,004,360             2,393,770               967,886               985,405
                                       -----------           -----------           -----------           -----------
Income (Loss) from
  Operations                              (851,097)              588,140              (372,181)                1,195

Interest Income
  (Expense), Net                           (56,902)             (151,338)              (19,881)              (60,853)
Other Income
  (Expense), Net                           (55,805)               13,712               (24,839)                  551
                                       -----------           -----------           -----------           -----------
Income (Loss) before
  Provision for Income
  Taxes                                   (963,804)              450,514              (416,901)              (59,107)
                                       -----------           -----------           -----------           -----------
Provision for Income Tax
  Benefit (Expense):
  (Note 1)
    - current                                 --                (125,092)                 --                  (9,992)
    - deferred                             240,948                18,000               104,222                31,000
                                       -----------           -----------           -----------           -----------

                                           240,948              (107,092)              104,222                21,008
                                       -----------           -----------           -----------           -----------

Net Income (Loss)                      $  (722,856)          $   343,422           $  (312,679)          $   (38,099)
                                       ===========           ===========           ===========           ===========
Per share data:

Basic earnings (loss)                  $      (.12)          $       .06           $      (.05)          $      (.01)
   per share (Note 3)                   ==========            ==========            ==========            ==========


Basic weighted average
  common stock shares
  outstanding (Note 3)                   6,196,064             5,297,913             6,692,913             5,297,913
                                       ===========           ===========           ===========           ===========
Earnings (loss) per common
  share assuming dilution                                    $       .06
  (Note 3)                                                    ==========

Weighted average common
 stock outstanding,                                            5,692,830
 assuming dilution (Note 3)                                  ===========


                                           The Accompanying Notes are an Integral Part
                                                 of the Financial Statements
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                                                         ORGANIC FOOD PRODUCTS, INC.
                                       STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)

                                                                                      
                                                                             Accumulated                        Total         
                                     Common Stock              Additional      Deficit       Retained        Shareholders'
                                -------------------------       Paid-in         Form S        Earnings          Equity              
                                 Shares           Amount        Capital      Corporation     (Deficit)         (Deficit)
                                 ------           ------        -------      -----------     ---------         ---------

<S>                              <C>           <C>              <C>         <C>              <C>              <C>         
Balance at June 30, 1996        4,500,000     $  2,317,400     $   --      $ (1,410,410)    $       --       $    906,990

Proceeds from private
  offering, net of
  costs of $340,462               823,500        1,718,288         --              --               --          1,718,288


Purchase and retirement
  of treasury stock               (31,250)         (78,125)        --              --               --            (78,125)

Stock issued for
  director expenses                 5,663           14,157         --              --               --             14,157

Net income for the
 year ended June 30,
 1997                                --               --           --              --             55,167           55,167
                              -----------     ------------     --------    ------------     ------------     ------------

Balance at June 30,1997         5,297,913        3,971,720         --        (1,410,410)          55,167        2,616,477

Proceeds from initial
  public offering, net
  of costs of $1,084,975        1,495,000        4,495,025         --              --               --          4,495,025

Stock issued for director
  expenses                         17,200           34,401         --              --               --             34,401

Stock issued for
  acquisition of
  Sunny Farms, Inc.               425,000        1,700,000         --              --               --          1,700,000

Net loss for the nine
  month period ended
  March 31, 1998
  (unaudited)                        --               --           --              --           (722,856)        (722,856)
                              -----------     ------------     --------    ------------     ------------     ------------
Balance at March 31
  1998                          7,235,113     $ 10,201,146     $   --      $ (1,410,410)    $   (667,689)    $  8,123,047
                              ===========     ============     ========    ============     ============     ============

                                   The Accompanying Notes are an Integral Part
                                           of the Financial Statements

</TABLE>


<PAGE>
<TABLE>
<CAPTION>

                                          ORGANIC FOOD PRODUCTS, INC.
                                            STATEMENTS OF CASH FLOWS


                                                         Nine Months Ended                   Three Months Ended
                                                         ------------------                   ------------------
                                                    March  31,          March 31,         March  31,        March  31,
                                                       1998               1997               1998              1997
                                                   -----------        -----------        -----------        ----------
                                                            (Unaudited)                             (Unaudited)

<S>                                                <C>                 <C>               <C>                 <C>   
Increase (Decrease) in Cash:

    Net cash provided (used) by operating
        activities                                 $(2,260,753)       $(1,352,085)       $  (856,415)       $    12,995
                                                   -----------        -----------        -----------        -----------

Cash flows from investing activities:
    Purchase of fixed assets                          (421,322)          (294,457)          (168,753)          (134,034)
    Advances to shareholders                           (63,000)           (64,914)           (21,000)           (64,914)
                                                   -----------        -----------        -----------        -----------
      Net cash used by investing
        activities                                    (484,322)          (359,371)          (189,753)          (198,948)
                                                   -----------        -----------        -----------        -----------

Cash flows from financing activities:
    Repayment of capital lease                          (4,330)            (3,986)              (672)            (1,229)
    Repayment of notes payable                      (2,094,193)            (2,290)          (269,255)            38,405
    Repayment of notes payable
      - related parties                             (1,555,966)          (321,832)           (62,267)           (29,202)
    Proceeds from notes payable                      1,378,563            419,583          1,378,563            419,583
    Proceeds from issuance of stock                  4,958,277          1,718,288               --              (36,023)
    Purchase of treasury stock                            --              (78,125)              --                 --
    Deferred offering costs                               --             (211,055)              --             (211,055)
                                                   -----------        -----------        -----------        -----------

      Net cash provided (used) by financing
        activities                                   2,682,351          1,520,583          1,046,369            180,479
                                                   -----------        -----------        -----------        -----------

Net increase (decrease) in cash                        (62,724)          (190,873)               201             (5,474)

Cash at beginning of period                             62,925            191,073               --                5,674
                                                   -----------        -----------        -----------        -----------

Cash at end of period                              $       201        $       200        $       201        $       200
                                                   ===========        ===========        ===========        ===========







                                             The Accompanying Notes are an Integral Part
                                                     of the Financial Statements
</TABLE>

<PAGE>




                           ORGANIC FOOD PRODUCTS, INC.
                          NOTES TO FINANCIAL STATEMENTS

1. Interim Financial Statements:

     The  unaudited  interim  financial   statements   include  all  adjustments
     (consisting  of  normal  recurring  accruals)  which,  in  the  opinion  of
     management,  are  necessary in order to make the financial  statements  not
     misleading.  Operating  results for the nine month  period  ended March 31,
     1998,  are not  necessarily  indicative of the results that may be expected
     for the entire year ending June 30, 1998.  These financial  statements have
     been prepared in accordance with the instructions to Form 10-QSB and do not
     contain  certain  information  required by  generally  accepted  accounting
     principles.  These statements  should be read in conjunction with financial
     statements and notes thereto  included in the Company's Form 10-KSB for the
     year ended June 30, 1997.

2. Initial Public Offering:

     The Company  completed its initial public  offering of 1,495,000  shares of
     its no par value  common stock at a price of $4.00 per share sold under its
     Registration  Statement and Prospectus dated August 8, 1997. Gross proceeds
     of approximately $6,000,000 were received by the Company.

     The Company  issued 130,000  warrants to an underwriter in connection  with
     its initial  public  offering.  The warrants are  exercisable at a price of
     $4.80 per share, and expire in  approximately  two and one-half (2.5) years
     from the date of the offering.

3.   Basic  earnings  per share are based upon the  weighted  average  number of
     shares outstanding for each of the respective  periods.  The following data
     reflects  the amount used in  computing  earnings per share for the periods
     ended March 31, 1998 and March 31,  1997,  and the effect on income and the
     weighted average number of shares of dilutive potential of common stock.
<TABLE>
<CAPTION>

                                                              Nine  Months Ended                 Three Months Ended
                                                             ------------------                  ------------------
                                                      March  31,          March  31,        March  31,          March  31,
                                                        1998                 1997              1998               1997
                                                     -----------        ------------       -----------        -----------
Net income available to common
<S>                                                  <C>                <C>                <C>                <C>         
 stockholders used in basic EPS                      $  (722,856)       $   343,663        $  (312,679)       $   (38,099)

Basic earnings (loss) per share:

Weighted average common shares                         6,196,064          5,297,913          6,692,913          5,297,913
 outstanding                                         -----------        -----------        -----------         ----------
                                                     $      (.12)       $       .06        $      (.05)              (.01)
        Basic earnings (loss) per share              ===========        ===========        ===========         ==========

Earnings per Share Assuming Dilution:

Common stock equivalents
 Options and warrants granted                                               975,666
  and unexercised
 Assumed buyback of options                                                (580,750)
                                                                        -----------
                                                                            394,917
       Weighted average of common shares
        outstanding                                                       5,297,913
                                                                        -----------
       Weighted average common shares
        outstanding assuming dilution                                     5,692,830
                                                                        ===========
       Earnings (loss) per share assuming
           dilution                                                     $       .06
                                                                        ===========
</TABLE>

     Options and warrants on 975,666 shares of common stock were not included in
     computing  diluted  EPS for the nine month and three  month  periods  ended
     March  31,  1998  and  the  three  month   period   ended  March  31,  1997
     respectively, because their effects were antidilutive.


<PAGE>

4.   On February 10, 1998 the Company  purchased  certain  assets of Sunny Farms
     Corporation,  a producer  of bottled  water and natural  juice  products in
     Richmond,  California.  The  Company  purchased  Sunny  Farms'  Napa Valley
     Springs  bottled water product line, the Pacific Rim fruit flavored  drinks
     product line, the Sunny Farms  packaged  fruit juice product line,  related
     inventory,  trademarks,  recipes,  customer  lists,  supplier  information,
     goodwill and certain juice processing equipment.

     The base  purchase  price for the  intangible  assets was  $1,700,000  plus
     $737,367 for the inventory and $120,000 for the juice processing equipment.

     The Company  issued  425,000  shares of its common stock as payment for the
     intangible  assets  and paid cash in the amount of  $120,000  for the juice
     processing equipment.  Regarding the payment of inventory,  (a) the Company
     assumed  Sunny  Farms'  debt  obligations  owing to Wells Fargo Bank in the
     amount of  $698,765.71,  and (b) agreed to pay any remaining  amounts owing
     for the inventory from the proceeds received from sales of the inventory by
     the Company after the Company has received  proceeds equal to the amount of
     the assumed debt.
     
5. New Accounting Pronouncements:

     Statement of Financial  Accounting  Standards No. 128, "Earnings per Share"
     (SFAS 128)issued by the Financial  Accounting  Standards board is effective
     for fiscal years and interim  periods ending after December 15, 1997.  This
     pronouncement provides a different method of calculating earnings per share
     than is currently  used in  accordance  with APB 15,  "Earnings per Share."
     SFAS 128 provides  for the  calculation  of basic and diluted  earnings per
     share.  Basic  earnings  per share  includes no dilution and is computed by
     dividing income  available to common  shareholders by the weighted  average
     number of common shares  outstanding for the period.  Diluted  earnings per
     share reflects the potential dilution of securities that could share in the
     earnings of an entity,  similar to fully  diluted  earnings per share.  The
     Company has adopted  this  accounting  standard  for its earnings per share
     computations.

6. Inventory - Other:

     Due to a  manufacturing  problem (see  details  under Other  Matters),  the
     Company  was forced to  withdraw  certain  products  from its  distribution
     channels  during the third  quarter.  A claim was filed with the  Company's
     insurance  carrier  seeking   reimbursement  for  the  economic  loss.  The
     insurance carrier has cooperated with the Company,  and the Company expects
     that a high percentage of the total claim could be recovered;  however, the
     Company cannot say with certainty what the final settlement will be.

     The Company has separated the inventory to be sold to the insurance carrier
     on the balance sheet and listed it as "Inventory - Other".  The cost of the
     product is listed at $508,031. Revenue will be recorded on the sale of this
     inventory as the insurance claim is paid by the insurance carrier.

7. Change in Estimate:

     During the three month period ending March 31, 1998 the Company  elected to
     raise the allowance for  manufacturers  charge-backs  to an amount equal to
     100% of the  accounts  receivable  subject  to the  charge-backs.  In prior
     periods, the allowance was approximately 60%.



<PAGE>


Item 2: Management's Discussion and Analysis
--------------------------------------------

Results of Operations for the Nine and Three Months Ended March 31, 1998
    and Nine and Three Months Ended March 31, 1997
------------------------------------------------------------------------

     Organic Food Products, Inc. (OFPI or the "Company") reported a net loss for
     the nine and three  months  ended March 31, 1998 of $722,856  and  $312,679
     respectively,  compared  to a net  income  of  $343,422  and a net  loss of
     $38,099  for the same  periods  from the  prior  year.  The  losses  can be
     attributed to lower than estimated sales volumes,  increased  manufacturing
     costs,  the  write-down of  discontinued  inventory  items and increases in
     reserves due to a change in estimates for uncollectible receivables related
     to manufacturers charge-backs.


     Revenues
     --------
     Revenues decreased $859,000 or 9.5% for the nine months but only $21,000 or
     .8%for the three months  ended March 31, 1998  compared to the same periods
     from the prior fiscal year.  Year-to-date revenues were down as a result of
     the phase out of  industrial  sales of organic  raw  material  ingredients.
     Revenue  for the  quarter  reflected  the  additional  sales of Sunny Farms
     products.  These  products  represented  net  revenues of $490,000  for the
     current quarter. However, sales for the quarter appeared flat when compared
     to the same period from the prior fiscal year  because of a product  market
     withdrawal  that  occurred  during the  quarter  (see  details  under Other
     Matters). The Company anticipates a settlement with the Company's insurance
     carrier that will permit the Company to record  product sales in the fourth
     quarter that would have been  recorded in the third  quarter if the product
     had not been returned by customers to the Company.  The  insurance  carrier
     has cooperated with the Company,  but the Company cannot say with certainty
     what the final settlement will be.

     Cost of Goods Sold
     ------------------
     The Company's cost of goods sold increased as a percentage of sales for the
     nine  and  three  months  ended  March  31,  1998  from  73.8%  and  76.8%,
     respectively,  compared  to 67.1% and 61.9% for the same  periods  from the
     prior year. The year-to-date increase is a function of a cost of goods sold
     that is equivalent to the prior fiscal period but is higher as a percentage
     of sales due to a decrease in revenue of $859,000.  The quarterly  increase
     is due to increased production costs and higher priced raw food ingredients
     for Sunny Farms products.

     Sales and Marketing
     -------------------
     Sales and  marketing  expenses  increased as a percentage  of sales for the
     nine  and  three  months  ended  March  31,  1998  from  27.2%  and  25.6%,
     respectively,  compared  to 16.5% and 21.0% for the same  periods  from the
     prior year.  The increase in sales and  marketing  expenses  between  these
     comparative  periods was due primarily to the additional  reserves recorded
     for manufacturer charge- backs due to a change in estimates.

     General and Administrative
     --------------------------
     The Company's general and administrative expenses decreased as a percentage
     of sales for the nine and three  months  ended March 31, 1998 from 9.4% and
     12.1%,  respectively,  compared to 9.9% and 17.1% for the same periods from
     the prior year.  This decrease  occurred even though sales revenue was down
     or flat when  compared to  previous  periods.  The  decrease  represents  a
     stabilization  and/or  reduction  in  overall  general  and  administrative
     expenses.


<PAGE>



     Seasonality
     -----------
     In relation to product purchasing, the Company will seasonally contract for
     certain  product for the entire year at harvest time or at planting time to
     secure  raw  materials  throughout  the year.  These  purchases  take place
     annually  from early  spring to  mid-summer  and are effected to reduce the
     risk of price swings due to demand fluctuations. These annual purchases can
     create overages or shortages in inventory.  The Company's intention to sell
     certain bulk raw materials to other  manufacturers  as necessary may assist
     in reducing overages and should allow for more effective  purchasing of the
     required raw materials.


     Liquidity and Capital Resources and Changes in Financial Condition
     ------------------------------------------------------------------
     Due to expenses  related to the  manufacturing  problem (see Other  Matters
     below),  the  Company has  experienced  certain  periods of cash  shortages
     during the third  quarter of fiscal 1998. As reported in the 10-QSB for the
     period ending  December 31, 1997,  adequate cash flows should resume in the
     fourth  quarter.  The  company  currently  has a working  line of credit of
     $1,500,000 that will decrease to $1,300,000.

     Other Matters
     -------------
     Due to a manufacturing  problem, the Company was forced to withdraw certain
     products from its  distribution  channels  during the third quarter.  After
     consulting with scientific  experts regarding the magnitude of the problem,
     it was determined that the total economic cost was approximately  $600,000.
     This included product cost, overtime  replacement labor and recall freight.
     A claim  was filed  with the  Company's  insurance  carrier  which  totaled
     approximately  $900,000 and included lost profits on the product. Thus far,
     the Company has  received  advances on this claim  totaling  $300,000.  The
     insurance carrier has cooperated with the Company,  and the Company expects
     that a high  percentage of the $900,000  could be recovered;  however,  the
     Company cannot say with certainty what the final settlement will be.

     The Company has separated the inventory to be sold to the insurance carrier
     on the balance sheet and listed it as "Inventory - Other".  The cost of the
     product is listed at $508,031. Revenue will be recorded on the sale of this
     inventory as the insurance claim is paid by the insurance carrier.



<PAGE>


                           Part II - Other Information


Item 1. Legal Proceedings
--------------------------

     The Company is not party to any  litigation  other than routine  litigation
     incidental to the business.

Item 2. Changes in Securities
-----------------------------

None.

Item 3. Defaults Upon Senior Securities
---------------------------------------

None.

Item 4. Submission of Matters to a Vote of Security Holders
-----------------------------------------------------------

None.

Item 5. Other Information
-------------------------

None.

Item 6. Exhibits and Reports on Form 8-K
----------------------------------------

None.