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 SEPTEMBER 30, 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, 7,275,688
shares as of September 30, 1998.

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



<PAGE>


PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
-------  --------------------

                           ORGANIC FOOD PRODUCTS, INC.
                                 BALANCE SHEETS

                                     ASSETS
                                                                    (Unaudited)
                                                                   September 30,
                                                                       1998
                                                                    -----------

Current Assets:
   Cash                                                             $   204,752
   Accounts receivable, net                                             903,222
   Inventory, net                                                     3,116,597
   Prepaid expenses                                                     183,298
   Related party receivable                                              87,670
                                                                    -----------

          Total Current Assets                                        4,495,539
                                                                    -----------

Property and Equipment:
   Computer software                                                     62,138
   Leasehold improvements                                               185,010
   Machinery and equipment                                            1,049,936
   Office equipment                                                      53,257
   Printing plates                                                       30,710
   Vehicles                                                              19,542
                                                                    -----------
                                                                      1,400,593
   Less: accumulated depreciation                                      (153,674)
                                                                    -----------

                                                                      1,246,919
                                                                    -----------
Other Assets:
   Deposits and other                                                    50,615
   Goodwill, net                                                        893,285
                                                                    -----------

                                                                        943,900
                                                                    -----------

        Total Assets                                                $ 6,686,358
                                                                    ===========


                   The Accompanying Notes are an Integral Part
                           of the Financial Statements

                                        1

<PAGE>
                           ORGANIC FOOD PRODUCTS, INC.
                           BALANCE SHEETS (Continued)

                      LIABILITIES AND SHAREHOLDERS' EQUITY

                                                                    (Unaudited)
                                                                   September 30,
                                                                        1998
                                                                    -----------
Current Liabilities:
   Notes and capitalized leases
     payable - current portion                                      $   890,037
   Notes payable - related parties -
     current portion                                                    534,564
   Accounts payable and accrued expenses -
     related parties                                                    363,078
   Accounts payable and accrued expenses                              1,916,545
   Accrued wages and taxes                                              236,393
   Accrued commissions                                                   31,411
                                                                    -----------

          Total Current Liabilities                                   3,972,028
                                                                    -----------
Long-Term Liabilities:
   Capital lease obligations - long-term
     portion                                                             12,049
                                                                    -----------
Shareholders' Equity:
   Common stock                                                       9,851,687
   Accumulated deficit                                               (7,149,406)
                                                                    -----------

                                                                      2,702,281
                                                                    -----------

       Total Liabilities and Shareholders' Equity                   $ 6,686,358
                                                                    ===========


                   The Accompanying Notes are an Integral Part
                           of the Financial Statements



                                        2
<PAGE>

                           ORGANIC FOOD PRODUCTS, INC.
                            STATEMENTS OF OPERATIONS
(Unaudited)
                                                        Three Months Ended
                                                    September 30,  September 30,
                                                        1998           1997
                                                     -----------    -----------

Revenues                                             $ 2,841,874    $ 2,833,884

Cost of Goods Sold                                     2,405,648      1,869,692
                                                     -----------    -----------

Gross Profit                                             436,226        964,192
                                                     -----------    -----------

Sales and Marketing Expense                              805,607        705,451

General and Administrative Expenses                      730,273        177,721
                                                     -----------    -----------

                                                       1,535,880        883,172
                                                     -----------    -----------

Income (Loss) from Operations                         (1,099,654)        81,020

Interest Expense, Net                                    (31,840)       (26,265)

Other Income (Expense), Net                              (43,426)        10,275
                                                     -----------    -----------

Income (Loss) before Provision for Income Taxes       (1,174,920)        65,030

Provision for Income Tax Expense                            --           16,257
                                                     -----------    -----------

Net Income (Loss)                                    $(1,174,920)   $    48,773
                                                     ===========    ===========

Basic and Diluted Earnings                          
(Loss) per share                                     $      (.16)   $       .01
                                                     ===========    ===========

Weighted Average Number of Shares Outstanding          7,275,688      6,285,227
                                                     ===========    ===========




                   The Accompanying Notes are an Integral Part
                           of the Financial Statements

                                        3

<PAGE>

                           ORGANIC FOOD PRODUCTS, INC.
                            STATEMENTS OF CASH FLOWS

                                                         Three Months Ended
                                                     September 30, September 30,
                                                         1998         1997
                                                    -------------  -------------
Increase (Decrease) in Cash:

 Net cash provided (used) by operating
 activities                                          $   292,355    $(1,354,305)
                                                     -----------    -----------

Cash flows for investing activities:
    Purchase of fixed assets                             (39,689)      (152,485)
    Advances to shareholder                                 --          (21,000)
    Cash received from sale of fixed assets                1,000         27,819
                                                     -----------    -----------

      Net cash used by investing activities              (38,689)      (145,666)
                                                     -----------    -----------

Cash flows from financing activities:
    Repayment of capital lease and notes payable         (90,499)    (1,827,059)
    Repayment of notes payable - related parties            --       (1,360,210)
    Proceeds from issuance of stock                         --        4,958,277
                                                     -----------    -----------

      Net cash provided by financing activities          (90,499)     1,771,008
                                                     -----------    -----------

Net increase in cash                                     163,167        271,037

Cash at beginning of period                               41,585         62,925
                                                     -----------    -----------

Cash at end of period                                $   204,752    $   333,962
                                                     ===========    ===========



                   The Accompanying Notes are an Integral Part
                           of the Financial Statements


                                        4


<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 three month period ended  September
     30, 1998 are not necessarily indicative of the results that may be expected
     for the entire year ending June 30, 1999.  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, 1998.

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 during the three
     months ended September 31, 1997.

3.   Related Party Transactions

     During the quarter ended September 30, 1998,  Global National  Brands,  LLP
     (GNB)  billed the Company  $371,000.  This  amount  included  expenses  for
     management fees and personal  expenses.  GNB, a shareholder of the Company,
     was a  management  group  retained by the Company  through  October 1998 to
     oversee daily operations.

4.   Non-Cash Transactions

     During the quarter ended September 30, 1998, the Company  reclassed $37,322
     previously held in accounts payable to notes payable-related parties.


                                        5

<PAGE>

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

Results of Operations for the Three Months Ended September 30, 1998
and September 30, 1997
--------------------------------------------------------------------------------
Net Results

Organic  Food  Products,  Inc.  (OFPI or the  "Company")  reported a net loss of
$1,175,000 for the quarter ended September 30, 1998, compared to a net income of
$48,000 for the quarter ended September 30, 1997, a decrease of $1,223,000.  The
decrease was due primarily to the  recognition of increased  inventory costs and
administrative expenses related to the management services agreement with Global
Natural Brands.

Revenues

The Company's  revenues for the quarter ended September 30, 1998 were $2,842,000
compared to $2,834,000 for the quarter ended  September 30, 1997, an increase of
$8,000,  or .3%.  The  increase  in revenues  in 1998 was  primarily  due to the
acquisition of the natural juice business of Sunny Farms Corporation in February
of 1998.

Cost of Goods Sold

The Company's  cost of goods sold for the quarter  ended  September 30, 1998 was
$2,406,000,  or 84.6% of  sales,  versus  $1,870,000  or 66.0% of sales  for the
quarter ended  September 30, 1997. The increase in cost of goods sold was due to
the  recognition of higher  finished goods  inventory costs as the products were
sold during the quarter.  These products were actually  produced during previous
months when manufacturing operations were less efficient. Changes have been made
during  the first  quarter  of fiscal  year 1999 to  improve  the  manufacturing
process and thereby increase the gross profit margin.  Management believes these
improvements should be manifested in the results of subsequent quarters.

Sales and Marketing Expenses

The Company's  sales and marketing  expense for the quarter ended  September 30,
1998 was $806,000,  or 27.5% of sales, versus $705,000 or 24.9% of sales for the
quarter ended  September 30, 1997.  The increase in sales and marketing  expense
was due to increases in promotional  expenses such as  advertising  and in-store
promotions.

General and Administrative Expenses

The Company's general and administrative expense for the quarter ended September
30, 1998 was $730,000,  or 24.9% of sales, versus $178,000, or 6.3% of sales for
the period ended September 30, 1997. The increase was largely due to $371,000 in
costs for management fees and relocation  expenses associated with retaining the
management team from Global Natural Brands. See also Part II, Item 1.

Net Interest Expense

The Company's net interest  expense for the quarter ended September 30, 1998 was
$32,000,  or 1.1% of sales,  versus  $26,000,  or 0.9% of sales for the  quarter
ended  September  30, 1997.  The  increase  was due to the greater  usage of the
Company's line of credit facility.


                                       6
<PAGE>


Year 2000 Compliance

Organic Food Products Inc.,  uses computer  software that may be impacted by the
year 2000 problem,  and also relies upon vendors of equipment and services whose
products  may be  impacted by the year 2000  problem.  The  Company's  year 2000
compliance  issues  include:  1) the  equipment  it  uses  in its  manufacturing
process;  2) the  hardware  and  third-party  software  it  uses  for  corporate
administration;  3) the  services of  third-party  providers  it  purchases  for
certain   professional   services;   and  4)  the  external   services  such  as
telecommunications  and electrical  power. The Company has initiated a plan that
will attempt to identify all computer hardware and software, plant equipment and
services upon which it relies that may be impacted.  After identification of any
problem areas, the Company will verify whether or not those products or services
are year 2000 compliant.  The plan includes  contacting those vendors or service
providers to determine  their  compliance  or plans to become  compliant  before
December 31, 1999.  It is the intent of the Company to complete  this process by
December 31, 1998.

The Company uses various pieces of equipment in its  manufacturing  process that
may contain computer chips that could be affected by the year 2000 problem.  The
Company has  started,  but not  completed a program to identify  which pieces of
equipment could be affected and how the affected equipment could be updated.

The Company's  corporate  administrative  and operating  systems are exclusively
PC-based  using a  commercially  available  software  package.  The  Company has
received  written  confirmation  from  the  legal  department  of  the  software
developer confirming that it is year 2000 compliant.

The Company uses outside service providers for the processing and administration
of its payroll, 401(k) retirement plan and insurance benefit programs.  Although
a survey of these service providers has not been completed, the Company believes
that these providers will have year 2000-compliant systems.

The Company has not deferred any information  technology projects to date due to
the need to assess or ensure year 2000  compliance of its systems,  and does not
anticipate that any other information technology projects will be delayed in the
future due to the year 2000 problem.

For the reasons mentioned  herein,  the Company does not anticipate that it will
have an incomplete or untimely resolution of the year 2000 problem. Although the
total costs of compliance have not been completely assessed, management does not
believe they will be material in nature. As previously mentioned, with regard to
items  (1) - (3),  the  Company  believes  it  has or  will  achieve  year  2000
compliance in advance of December 31, 1999.  With respect to external  companies
that  provide  telecommunications  and  electrical  power,  the  Company is less
certain  about  the  impact  of their  non-compliance  regarding  the year  2000
problem.  Clearly, the loss of these services would create a major disruption of
the  Company's  normal  operations.  Given this  scenario,  the Company would be
required to obtain these services from other  sources.  The cost of switching to
other utility providers has not been assessed.


                                       7
<PAGE>



Issues  similar to these also face the  Company's  customers  and  vendors.  The
Company  has not yet  completed  an  assessment  of year 2000  readiness  of its
customers  and  vendors.  However,  based on initial  discussions  with  certain
customers and vendors,  management does not currently believe that business with
those  customers  and vendors will be  significantly  disrupted by the year 2000
problem.

Seasonality

Historically,  the  Company  has  experienced  little  seasonal  fluctuation  in
revenues.  In  relation  to product  purchasing,  the  Company  will  seasonally
contract  for  certain  products  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 and shortages in inventory.

Liquidity and Capital Resources

As of September  30, 1998,  the Company's  cash  position was limited.  With the
expiration of the Company's  $1,000,000  commercial line of credit on August 20,
1998, the Company was forced to severely limit its cash  expenditures.  However,
subsequent  to the quarter end,  the Company has secured a $3,000,000  revolving
line of credit and a $500,000  equipment line to replace the $1,000,000  line of
credit.  Since the funds  available  to the  Company  are based upon  discounted
accounts  receivable  and  inventory,  the  Company has only been able to borrow
approximately 50% or $1,600,000 of the $3,000,000  revolving line of credit. The
$1,600,000 was further  reduced at the time of funding by the payment of certain
debt commitments,  e.g., the prior outstanding bank line of credit,  leaving the
Company with an available  revolving  line of  approximately  $600,000 for daily
operations.  Given the current cash requirements of operating the business,  the
Company's cash position continues to be strained.

To reduce  pressure  on its cash  position,  the  Company's  management  team is
reviewing   various  options  to  generate   additional  cash  and  reduce  cash
expenditures.

Business Risks and Uncertainties

The  Company's  future  results  of  operations  and the  other  forward-looking
statements contained in this document,  in particular the statements  concerning
plant efficiencies and capacities,  capital spending,  research and development,
competition,  marketing  and  manufacturing  operations  and  other  information
provided herein involve a number of risks and uncertainties.  In addition to the
factors discussed above, among the other factors that could cause actual results
to differ  materially are general  business  conditions and the general economy;
competitors' pricing and marketing efforts; availability of third-party material
products at reasonable prices; risk of nonpayment of accounts receivable;  risks
of  inventory  obsolescence  due to shifts in market  demand;  timing of product
introductions;  litigation  involving  product  liabilities and consumer issues;
attracting and retaining qualified management; ability of the management team to
transcend the problem  associated  with changes in  management;  and  litigation
filed by  Global  Natural  Brands  due to the  termination  of their  management
services agreement. (See "Related Party Transactions" below).

                                        8
<PAGE>

New Applicable Accounting Pronouncements

During 1997,  the Financial  Accounting  Standards  Board released SFAS No. 130,
Reporting  Comprehensive  Income.  SFAS 130, which is effective for fiscal years
beginning  after  December 15, 1997,  establishes  standards  for  reporting and
display of  comprehensive  income and its  components in the entity's  financial
statements.  The  objective of SFAS 130 is to report a measure of all changes in
the equity of an enterprise  that result from  transactions  and other  economic
events of the  period.  Comprehensive  income is the total of net income and all
other  non-owner  changes  in  equity.  SFAS  130  does not  address  issues  of
recognition  or measurement  for  comprehensive  income and its components  and,
therefore,  it will not have an impact on the financial  condition or results of
the Company upon adoption.

The Financial  Accounting  Standards Board also recently  released SFAS No. 131,
Disclosures  about  Segments  of an  Enterprise  and Related  Information.  This
Statement, which is also effective for fiscal years beginning after December 15,
1997,  requires  reporting  of  financial  and  descriptive   information  about
reportable   operating  segments.   Operating  segments  are  components  of  an
enterprise  about which  separate  financial  information  is available  that is
evaluated  regularly by the chief  operating  decision  maker in deciding how to
allocate  resources  and in  assessing  performance.  The  Company  believes  it
operates in only one business segment,  production and distribution of processed
organic  foods,  and has  already  substantially  complied  with any  additional
disclosure  requirements.  SFAS 131 does not address  issues of  recognition  or
measurement in the basic financial  statements,  and thus will have no impact on
the Company's financial condition or results of operation upon adoption.


Related Party Transactions

During the quarter ended  September 30, 1998,  Global  Natural Brands billed the
Company  $371,000.  However,  certain of these  amounts  are in  dispute.  These
related party  transactions  included  expenses for management fees and personal
expenses.  Global Natural Brands, a shareholder of the Company, was a management
group retained by the Company through October 1998 to oversee daily  operations.
The management  services  agreement with Global Natural Brands was terminated on
October 26, 1998.  Please see Item 1, Legal  Proceedings of this report and Form
8-K filed on October 29, 1998 for additional information.


                                       9

<PAGE>



                           PART II - OTHER INFORMATION

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

     Litigation
     ----------

     On October  26,  1998,  the  Company  terminated  the  Management  Services
Agreement between it and Global Natural Brands,  Ltd.  ("Global").  On that same
day, Global, James F. Swallow, David J. O'Gorman, J. Bradley Barbeau, and Ronald
Balsbaugh (the "Global Group"),  employees of Global,  filed a complaint against
the Company, Charles Dyer, John Battendieri,  Charles Bonner, and Kenneth Steel,
as directors of the Company,  in the Santa Clara County Superior Court, Case No.
CV777541. The complaint includes claims for damages for breach of the Management
Services  Agreement  between  the Company  and Global  plus  unpaid  wages,  and
injunctive relief to enjoin the Company from terminating the Management Services
Agreement and the employment of the Global Group and from refusing to pay Global
and Global Group. The Court on October 26, 1998,  denied Global's and the Global
Group's application for a temporary  restraining order and set a hearing date of
December 1, 1998,  regarding their  Application for a Permanent  Injunction.  In
Global's  and the  Global  Group's  proposed  order,  they  ask for  $390,055.67
pertaining to fees and expenses they allege are owing through  October 26, 1998,
and $374,999 for what they allege are future fees that are owed to them.  Global
has also requested binding  arbitration under the Management Services Agreement.
The Company intends to defend itself vigorously in these actions.

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
-------  --------------------------------

(a) Exhibits:

    Exhibit No.            Title
    -----------            -----

    10.16      Secured  Promissory  Note

    10.17      Loan and Security Agreement for FINOVA Capital Corporation

(b) Reports on Form 8-K:

- Form  8-K/A  filed  July 6, 1998 to file a letter  from  Semple & Cooper,  LLP
regarding the  termination of their  relationship  as the Company's  independent
public accountants (originally reported on Form 8-K on June 22, 1998).

- Form 8-K/A filed July 23, 1998 to report the  appointment of BDO Seidman,  LLP
as the Company's new independent public accountants.


                                       10
<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

Date:

                                        ORGANIC FOODS PRODUCTS, INC.



                                        By:  /s/  THOMAS K. WARD
                                             -----------------------------------
                                                  Thomas K. Ward
                                                  Chief Financial Officer


                                       11