# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

# FORM 10-Q

# [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended:   November 30, 2004

OR

# [   ]     TRANSITION REPORT PURSUANT TO SECTION 13 AND 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission file: No. 33-94644

MINN-DAK FARMERS COOPERATIVE
(Exact named of registrant as specified in its charter)

|North Dakota                    |  | 23-7222188          | 
|------------------------------- |  | ------------------- | 
|                                |  |                     | 
|(State or other jurisdiction of |  | (I.R.S. Employer    | 
|Incorporation or organization)  |  | Identification No.) | 
|7525 Red River Road             | 
|Wahpeton, North Dakota          |  | 58075               | 
|                                |  |                     | 
|(Address of principal           |  | (Zip Code)          | 
|executive offices)              | 

| | (701) 642-8411                                                                    | 
| | --------------------------------------------------------------------------------- | 
| |                                                                                   | 
| | (Registrants telephone number, including area code)                              | 
| | Not Applicable                                                                    | 
| |                                                                                   | 
| | (Former name, former address and former fiscal year,if changed since last report) | 

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has
been subject to such filing requirements for the past 90 days.

YES   ____X____                         
NO   __________

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

YES   _________                         
NO   ____X____

Indicate the number of shares outstanding of each of the issuers
classes of common stock, as of the latest practicable date.

|                      |  | Outstanding at  | 
|--------------------- |  | --------------- | 
|Class of Common Stock |  | January 4, 2005 | 
|$250 Par Value        |  | 488             | 

---

Minn-Dak Farmers Cooperative
has previously registered securities for offer and sale pursuant to the Securities Act of 1933, as amended (the Securities
Act). As a result of that previous registration under the Securities Act, under Sections 15(d) and 13 of the Securities
Exchange Act of 1934, as amended (the Exchange Act), the Cooperative is obligated to file quarterly reports on form
10-Q, annual reports on Form 10-K and supplemental reports on Form 8-K. However, the Cooperative has not registered any of its
securities under Section 12(g) of the Exchange Act. The Cooperative is exempt from any obligation to register its securities under
the Exchange Act due to the provisions of Section 12(g)(2)(E), which exempts from Exchange Act registration any security of an
issuer, such as the Cooperative, which is a cooperative association as defined in the Agricultural Marketing Act of
1929. As a result, those provisions of the Exchange Act, which are applicable only to securities registered under Section 12 of
that act, do not apply to shares issued by the Cooperative. The provisions, which do not apply to the Cooperatives shares,
include the regulation of proxies under Section 14 of the Exchange Act and the reporting and other obligations of directors,
officers and principal stockholders under Section 16 of the Exchange Act.

---

# CONSOLIDATED BALANCE SHEETS
ASSETS(In Thousands)

|ASSETS                                                    | Nov 30, 2004(Unaudited) |  | Aug 31, 2004(Audited)
|--------------------------------------------------------- | ----------------------- |  | ---------------------
|                                                          |                         |  |                      
|CURRENT ASSETS:                                           |                         |  |                      
|Cash                                                      |                         |  | $                    
|                                                          |                         |  |                      
|                                                          |                         | 
|Receivables:                                              |                         | 
|Trade accounts                                            |                         |  |                      
|Growers                                                   |                         |  |                      
|Other                                                     |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         | 
|Advances to affiliate                                     |                         |  |                      
|                                                          |                         |  |                      
|Inventories:                                              |                         | 
|Refined sugar, pulp and molasses to be sold              
|on a pooled basis                                         |                         |  |                      
|Nonmember refined sugar                                   |                         |  |                      
|Yeast                                                     |                         |  |                      
|Materials and supplies                                    |                         |  |                      
|Beet and Juice Inventory                                  |                         |  |                      
|Other                                                     |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|Deferred charges                                          |                         |  |                      
|                                                          |                         |  |                      
|Prepaid expenses                                          |                         |  |                      
|                                                          |                         |  |                      
|Other                                                     |                         |  |                      
|                                                          |                         |  |                      
|Current deferred income tax asset                         |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         | 
|Total current assets                                      |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         | 
|PROPERTY, PLANT AND EQUIPMENT:                            |                         | 
|Land and land improvements                                |                         |  |                      
|Buildings                                                 |                         |  |                      
|Factory equipment                                         |                         |  |                      
|Other equipment                                           |                         |  |                      
|Construction in progress                                  |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|Less accumulated depreciation                             |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         | 
|OTHER ASSETS:                                             |                         | 
|Investments restricted for capital lease projects         |                         |  |                      
|Investment in stock of other corporations, unconsolidated |                         | 
|marketing subsidiaries and other cooperatives             |                         |  |                      
|Other                                                     |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  |                      
|                                                          |                         |  | $                    
|                                                          |                         |  |                      

See Notes to Consolidated Financial Statements.

---

# MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS EQUITY(In Thousands)

|                                                     | Nov 30, 2004(Unaudited) |  | Aug 31, 2004(Audited)
|---------------------------------------------------- | ----------------------- |  | ---------------------
|                                                     |                         |  |                      
|LIABILITIES AND MEMBERS INVESTMENT                  |                         |  |                      
|                                                     |                         | 
|CURRENT LIABILITIES:                                 |                         | 
|Short-term notes payable                             |                         |  | $                    
|                                                     |                         |  |                      
|                                                     |                         | 
|Current portion of long-term debt                    |                         |  |                      
|Current portion of bonds payable                     |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|Accounts payable:                                    |                         | 
|Trade                                                |                         |  |                      
|Growers                                              |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|Accrued liabilities                                  |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|Total current liabilities                            |                         |  |                      
|                                                     |                         | 
|LONG-TERM DEBT, NET OF CURRENT PORTION               |                         |  |                      
|                                                     |                         | 
|BONDS PAYABLE                                        |                         |  |                      
|                                                     |                         | 
|LONG TERM DEFERRED TAX LIABILITY                     |                         |  |                      
|                                                     |                         | 
|OTHER                                                |                         |  |                      
|                                                     |                         | 
|COMMITMENTS AND CONTINGENCIES                        |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|Total liabilities                                    |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|MINORITY INTEREST IN EQUITY OF SUBSIDIARY            |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|MEMBERS INVESTMENT:                                 |                         | 
|Preferred stock:                                     |                         | 
|Class A  100,000 shares authorized, $105 par value;
|72,200 shares issued and outstanding                 |                         |  |                      
|Class B  100,000 shares authorized, $75 par value;  |                         | 
|72,200 shares issued and outstanding                 |                         |  |                      
|Class C  100,000 shares authorized, $76 par value; 
|72,200 shares issued and outstanding                 |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|Common stock, 600 shares authorized, $250 par value;
|issued and outstanding, 488 shares at Nov 30,       
|2004 and 488 shares at August 31, 2004               |                         |  |                      
|Paid in capital in excess of par value               |                         |  |                      
|Unit retention capital                               |                         |  |                      
|Qualified allocated patronage                        |                         |  |                      
|Nonqualified allocated patronage                     |                         |  |                      
|Retained earnings (deficit)                          |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         |  |                      
|                                                     |                         | 
|                                                     |                         |  | $                    
|                                                     |                         |  |                      

See Notes to Consolidated Financial Statements.

---

PART I.   FINANCIAL INFORMATION
ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS

# MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED STATEMENTS OF OPERATIONS(In Thousands)(Unaudited)

|                                                     | Three Months EndedNovember 30,
|---------------------------------------------------- | ------------------------------
|                                                     |                               
|
|                                                     |                               
|REVENUE:                                             |                               
|From sales of sugar, co-products, and               
|yeast, net of discounts                              |                               
|Other income                                         |                               
|                                                     |                               
|                                                     |                               
|                                                     |                               
|                                                     |                               
|EXPENSES:                                            |                               
|Production costs of sugar, co-products,              |                               
|and yeast sold                                       |                               
|Marketing (includes freight and storage)             |                               
|General and administrative                           |                               
|Interest                                             |                               
|(Gain) loss on disposition of property and equipment |                               
|                                                     |                               
|                                                     |                               
|                                                     |                               
|                                                     |                               
|NET PROCEEDS RESULTING FROM MEMBER AND               |                               
|NONMEMBER BUSINESS                                   |                               
|                                                     |                               
|                                                     |                               
|DISTRIBUTION OF NET PROCEEDS:                        |                               
|Credited to members investment:                     |                               
|Components of net income:                            |                               
|Income (loss) from non-member business               |                               
|Patronage income                                     |                               
|                                                     |                               
|Net income                                           |                               
|                                                     |                               
|Unit retention capital                               |                               
|                                                     |                               
|Net credit to members investment                    |                               
|                                                     |                               
|Payments to members for sugarbeets, net of unit      |                               
|retention capital                                    |                               
|                                                     |                               
|                                                     |                               
|NET PROCEEDS RESULTING FROM MEMBER AND              
|NONMEMBER BUSINESS                                   |                               
|                                                     |                               

See Notes to Consolidated Financial Statements.

---

# MINN-DAK FARMERS COOPERATIVE
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)

|                                                                | Three Months EndedNovember 30,
|--------------------------------------------------------------- | ------------------------------
|                                                                |                               
|
|                                                                |                               
|CASH FLOWS FROM OPERATING ACTIVITIES:                           |                               
|Income allocated to members investment                         |                               
|Add (deduct) noncash items:                                     |                               
|Depreciation and amortization                                   |                               
|Net income allocated from unconsolidated marketing subsidiaries |                               
|Minority interest in equity of subsidiaries                     |                               
|Changes in operating assets and liabilities:                   
|Accounts receivable and advances                                |                               
|Inventory and prepaid expenses                                  |                               
|Deferred charges and other assets                               |                               
|Accounts payable, accrued liabilities and other liabilities     |                               
|                                                                |                               
|Net cash used in operating activities                           |                               
|                                                                |                               
|CASH FLOWS FROM INVESTING ACTIVITIES:                           |                               
|Capital expenditures                                            |                               
|Net proceeds from patronage refunds and equity revolvements     |                               
|Issuance of notes receivable                                    |                               
|Restricted bond/lease fund investment                           |                               
|                                                                |                               
|Net cash (used in)/provided by investing activities             |                               
|                                                                |                               
|                                                                |                               
|CASH FLOWS FROM FINANCING ACTIVITIES:                           |                               
|Net proceeds from issuance of short-term debt                   |                               
|Payment of long-term debt                                       |                               
|Payment of unit retains and allocated patronage                 |                               
|Sale and repurchase of common stock, net                        |                               
|                                                                |                               
|Net cash provided by financing activities                       |                               
|                                                                |                               
|                                                                |                               
|NET DECREASE IN CASH                                            |                               
|                                                                |                               
|CASH, BEGINNING OF YEAR                                         |                               
|                                                                |                               
|                                                                |                               
|CASH, END OF QUARTER                                            |                               
|                                                                |                               
|                                                                |                               
|SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:              |                               
|Cash payments for:                                              |                               
|Interest                                                        |                               
|                                                                |                               
|                                                                |                               
|Income taxes, net of refunds                                    |                               
|                                                                |                               

See Notes to Consolidated Financial Statements.

---

MINN-DAK FARMERS COOPERATIVE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|1. |  | The consolidated financial statements for the three-month periods
ended November 30, 2004 and 2003 are unaudited and reflect all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of management, necessary for a fair presentation of the financial position and operating results for the
interim period. The consolidated financial statements should be read in conjunction with the consolidated financial statements and
notes thereto, together with managements discussion and analysis of financial condition and results of operations, contained
in the Companys Annual Report to Stockholders previously submitted in the Companys Annual 10-K for the fiscal year
ended August 31, 2004. The results of operations for the three months ended November 30, 2004 are not necessarily indicative of
the results for the entire fiscal year ending August 31, 2005.
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. |  | In October 2004, the company declared a revolvement of the
remaining 25% of the unit retains and allocated patronage for the 1993 crop totaling $828,628, 100% of the 1994 crop totaling
$3,475,805 and approximately 8% of the 1995 crop unit retains and allocated patronage totaling $213,271. These amounts were paid
to the stockholders on September 30, 2004.
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | In October 2005, the company allocated to members $5,128,308 of
patronage from the 2003 crop, of which $4,328,308 was in the form of non-qualified allocated patronage and $800,000 was in the
form of qualified allocated patronage. $4,000,000 of the allocated patronage was declared qualified for alternative minimum tax
purposes. On November 12, 2004 $800,000 was paid in cash to the stockholders and a notice was given for the alternative minimum
tax qualified declaration.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The Financial Accounting Standards Board has issued an amendment
to Financial Accounting Standards No. 132, Employers Disclosure about Pensions and Other Postretirement Benefits. Such
amendment requires additional disclosures to interim and annual financial statements, which are effective for the interim period
ending November 30, 2004, but does not change the recognition requirements related to pensions and postretirement benefits.
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Components of Net Periodic Benefit Cost for the Three Months
Ended 11-30-04
| | ---------------------------------------------------------------------------

|000s                              | Pension Benefits |  | Other Benefits
|---------------------------------- | ---------------- |  | --------------
|
|                                   |                  |  |               
|Service Cost                       |                  |  | $             
|Interest Cost                      |                  |  |               
|Expected return on plan assets     |                  |  |               
|Amortization of prior service cost |                  |  |               
|Amortization of transition cost    |                  |  |               
|Amortization of net (gain)loss     |                  |  |               
|Net periodic benefit cost          |                  |  | $             

As of the three months ended 11-30-04, the Company has made $.25 million of
contributions vs $.258 million through the three months ended 11-30-03. The Company anticipates contributing an additional $.75
million to fund its pension plan in FY 2005 for a total of $1.0 million.

---

MANAGEMENTS DISCUSSION AND ANALYSIS

OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION

FOR THE THREE MONTHS ENDED NOVEMBER 30, 2004 AND NOVEMBER 30, 2003

The following discussion and analysis relates to the financial condition and
results of operations of Minn-Dak Farmers Cooperative (the Company) for the three months ended November 30, 2004 (the
first quarter of the Companys 2004-2005 fiscal year). The Companys fiscal year runs from September 1 to August 31.

Any statements regarding future market prices, anticipated costs,
agricultural results, operating results and other statements that are not historical facts contained in this Quarterly Report on
Form 10-Q are forward-looking statements. The words expect, project, estimate,
believe, anticipate, plan, intend, could, may,
predict and similar expressions are also intended to identify forward-looking statements. Such statements involve
risks, uncertainties and assumptions, including, without limitation, market factors, the effect of weather and economic
conditions, farm and trade policy, the available supply of sugar, available quantity and quality of sugarbeets and other factors
detailed elsewhere in this and other Company filings with the Securities and Exchange Commission. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from
those indicated.

RESULTS FROM OPERATIONS

Comparison of the three months ended November 30, 2004 and 2003
Revenue for the three months ended November 30, 2004 increased $.6 million from the 2003 period, an increase of 1.0%. Revenue
from the sale of finished goods increased $.2 million and the change in the value of inventories increased $.4 million.

Revenue from the sales of sugar increased $.4 million, or 1.1%, reflecting a
2.5% increase in volume and a 1.4% decrease in the price for sugar.

Revenue from dried pulp and molasses sales increased $.1 million or 1.1%,
reflecting a 1.3% decrease in sales volume and a 2.4% increase in the average gross selling price. The decrease in sales volume
was primarily due to a decreased supply of available product for shipment in the molasses marketing pool.

Revenues from pressed pulp and tailing sales decreased $.1 million,
reflecting a 62% decrease in sales volume. The reduced sales volume is primarily due to the steam dryer operating on a more
consistent basis in 2004 resulting in less excess pressed pulp to be marketed.

Revenues from yeast sales decreased $0.2 million or 7.8%, reflecting a 1.7%
increase in sales volume and a 9.5% decrease in the average selling price. The average selling price is based upon a formula
between Minn-Dak Yeast Company and Sensient whereby average selling prices to customers along with average costs of production are
taken into account in establishing the price Sensient pays Minn-Dak Yeast for product. As sales volumes increase or decrease, the
efficiencies of production costs will cause the formula to decrease or increase the selling price. Also, the domestic yeast
industry is currently in a position of excess capacity for the marketplace resulting in downward price pressures.

The other contributing factor to the change in revenues results from the
increase in finished goods inventories. The increase in the value of finished goods inventories for the three months ended
November 30, 2004 amounted to $14.9 million or $.4 million more than the increase in the value of finished goods inventories for
November 30, 2003.

---

In the consolidated statements of operations, Expenses section, production
costs of sugar, co-products and yeast totaled $15.8 million, $1.1 million or 7.3% more than the prior year. The increase is mainly
attributable to normal operations and expense accrual timings when comparing the three-month period ending November 30, 2003.
Marketing costs totaled $12.2 million, $5.1 million or 72.1% more than the prior year. The increase is due to the cost of securing
additional sugar allocations, allocations needed in order to ship all of the Companys produced sugar under the sugar act of
the current Farm Bill, the cost of sugar purchased to supplement pooled sugar production for customer order requirements in the
month of September, and current crop freight and packaging costs. In the section Distribution of Net Proceeds, payments to members
for sugarbeets, net of unit retention capital and unprocessed sugarbeet inventory decreased $2.4 million or 7.8% from the fiscal
year 2004 period. This decrease is a combination of less sugar being produced during the same time period and a lower estimated
price per pound for the growers sugar during the same time period. For fiscal year 2005 the Company is projecting a payment
to growers for sugarbeets totaling $80.4 million, which is $12.1 million or 13.1% less than the prior fiscal year. The decrease in
payments to members is due to: (1) the result of a 1.45% increase in tons of beets delivered by members versus the prior year, (2)
10.9% decrease in sugar per ton of the beets delivered versus the prior year, and (3) 2.6% decrease in sales prices for sugar
sold. The payment is based upon (i) an average delivered sugar content of 16.71%, (ii) a total sugarbeet crop to process of 2.3
million tons and (iii) the Companys projected selling price for its sugar, which is currently estimated to be slightly lower
than the previous year.

ESTIMATED FISCAL YEAR 2005 INFORMATION

The agreements between the Company and its members regarding the delivery of
sugarbeets to the Company require payment for members sugarbeets in several installments throughout the year. As only the
final payment is made after the close of the fiscal year, the first payments to members for their sugarbeets are based upon the
Companys then-current estimates of the financial results to be obtained from processing the crop and the sale of finished
products. This discussion contains a summary of the Companys current estimates of the financial results to be obtained from
the Companys processing of the 2004 sugar beet crop. Given the nature of the estimates required in connection with the
payments to members for their sugarbeets, this discussion includes forward-looking statements. These forward-looking statements
are based largely upon the Companys expectations and estimates of future events; as a result, they are subject to a variety
of risks and uncertainties. Some of those estimates, such as the selling price for the Companys products and the quantity of
sugar produced from the sugar beet crop are beyond the Companys control. The actual results experienced by the Company may
differ materially from the forward-looking statements contained herein.

The Companys members harvested 2.3 million tons of sugarbeets from the
2004 crop, the second largest crop ever delivered to the Company. Sugar content of the 2004 crop at harvest was 5.5% below the
average of the five most recent years. Because of the size and quality of the crop delivered, the Companys production of
sugar from the 2004 crop sugarbeets is expected to be the fourth largest sugar produced. During September, October and November,
unseasonably wet conditions caused harvest to be difficult with 5,000 acres remaining unharvested due to excess moisture in the
fields. The remaining beets to be sliced, as of this report, are considered to be in average storage condition. The Companys
initial beet payment estimate totals $35.02 per ton or $.123388 per harvested/bonus pound of sugar, with the final beet payment
determined in October of 2005. This forward-looking material is based on the Companys expectations regarding the processing
of the 2004 sugarbeet crop; the actual production results obtained by processing those sugarbeets could differ materially from the
Companys current estimate as a result of factors such as changes in production efficiencies and storage conditions for the
Companys sugarbeets.

Currently, the factory is operating at a level close to the budgeted forecast
of the Company. It is believed that any minor deviation from plan will not have a material impact to the financial results of the
Company.

The Company currently estimates the average net selling price of the
Companys sugar will be less than that of the prior year because of the volume available for sale (domestic production plus
foreign imports) relative to the amount of estimated domestic consumption.

The 2002 Farm Bill contains marketing allocations for sugar that could
potentially restrict the companys ability to market all the sugar it produces. The Company believes it has obtained the
allocations necessary for the marketing of substantially all of the 2004-crop. However, there are no assurances that the Company
will be able to secure enough marketing allocations for crop years 2005-2007 (the crop years covered by the current Farm Bill) to
market all of the production from the those crops. For each crop

---

year left under the Farm Bill, the Companys Board of Directors and
Management team will be assessing the level of anticipated allocations that the Company will be receiving from the United States
Department of Agriculture (USDA). Based upon that estimated level of assessment, the measurement of the risk involved
in trying to secure additional allocation from other sugar processors, if needed, and the value of selling non-allocation sugar
into other markets, will ultimately determine the level of planted acreage that the Company decides upon.

OTHER INFORMATION

Provisions of the current Farm Bill and existing trade agreements between the
United States (U.S.) and various foreign countries regulate domestic and imported sugar sales in the U.S. Currently,
imports provide about 12% of the total domestic consumption of sugar in the U.S., and it is the opinion of the Company and the
sugar industry as a whole that any significant increase in the amount of imported sugar to the U.S. marketplace will result in
serious adverse sugar pricing consequences. The Company believes that, should the U.S. Congress pass certain proposed regional or
bi-lateral trade agreements that have been or are currently being negotiated, those trade agreements will represent a serious
public policy challenge to itself and the domestic sugar industry. The primary agreements under consideration, to the
Companys knowledge, are the Free Trade Area of the Americas; the Central American Free Trade Agreement; the Andean Free
Trade Agreement; the Thailand Free Trade Agreement; and the South African Customs Union Free Trade Agreement. Many of the
countries included in these agreements are major sugar producers and exporters.  If increases in guaranteed access or
reductions in sugar tariffs are included in these agreements, excess sugar from these regions could enter the U.S. market and put
pressure on domestic sugar prices.  The U.S. sugar industry and the Company recognize the potential negative impact that
would result if these agreements are entered into by the United States and are taking steps to actively oppose any agreement that
calls for additional sugar access to domestic market place. The Company and the sugar industry intend to continue to focus
significant attention on trade issues in the future.

The current Farm Bill provides price support provisions for sugar. However,
if that price support program, including the Tariff Rate Quota system for imported sugar, were eliminated in its entirety, or if
the protection the United States price support program provides from foreign competitors were materially reduced, the
Company could be materially and adversely effected. In such a situation, if the Company were not able to adopt strategies that
would allow it to compete effectively in a greatly changed domestic market for sugar, the adverse affects could impact the
Companys continued viability and the desirability of grower sugarbeets for delivery to the Company.

The Companys Audit Committee and management are working toward meeting
all required SEC documentation, certification and best business practices as required in recently passed federal legislation (the
Sarbanes-Oxley law). As the SEC adopts new rules and proposes future rules, the Company is positioning itself to continue being in
compliance. The Companys Audit Committee and management have been seeking guidance from the SEC and experts in the
appropriate areas as needed.

The Company considers its Chief Executive Officer, Chief Financial Officer
and Chief Accounting Officer to be its disclosure committee, responsible to the Audit Committee for presenting material facts
relative to the financial statements and how they are to be disclosed in the SEC filings prior to those filings.

Within the 90 days prior to the date of this report, the Company carried out
an evaluation, under the supervision and with the participation of the Companys management, including the Companys
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, the Chief Executive Officer
and Chief Financial Officer concluded that the Companys disclosure controls and procedures are effective in timely alerting
them to material information required to be included in the Companys periodic SEC filings relating to the Company (including
its consolidated subsidiary).

There were no significant changes in the Companys internal controls or
in other factors that could significantly affect these internal controls subsequent to the date of our most recent
evaluation.

---

LIQUIDITY AND CAPITAL RESOURCES

Because the Company operates as a cooperative, payment for member-delivered
sugarbeets, the principal raw material used in producing the sugar and agri-products it sells, are subordinated to all member
business expenses. In addition, actual cash payments to members are spread over a period of approximately one year following
delivery of sugarbeet crops to the Company and are net of unit retains and patronage allocated to them, all three of which remain
available to meet the Companys capital requirements. This member financing arrangement may result in an additional source of
liquidity and reduced outside financing requirements in comparison to a similar business operated on a non-cooperative basis.
However, because sugar is sold throughout the year (while sugarbeets are processed primarily between September and April) and
because substantial amounts of equipment are required for its operations, the Company has utilized substantial outside financing
on both a seasonal and long-term basis to fund such operations. The financing has been provided by Co-Bank (the Bank).
The Company has a short-term line of credit with the Bank for calendar years 2004 and 2005 of $45.0 million, of which $1.0 million
is currently available for a letter of credit. The seasonal line of credit is scheduled for renewal in May 2005.

The loan agreements between the Bank and the Company obligate the company to
maintain the following financial covenants, and in accordance with GAAP:

- Maintain working capital of not less than $9.0 million as of August 31, 2005.
- Maintain a long-term debt and capitalized leases to equity ratio of not greater than .8:1.
- Maintain available cash flow to current long-term debt ratio as defined in the agreement of not less than 1.25:1.

As of November 30, 2004 the Company was in compliance with its loan agreement
covenants with the Bank.

Working Capital as of November 30, 2004 totals $18.4 million compared to
$14.6 million at August 31, 2004, an increase of $3.8 million for the period. Increased working capital is a result of normal
financing, operational and capital expenditure activities of the Company.

The targeted working capital for August 31, 2005 is approximately
$11.0 million dollars and, in the Companys opinion, will be attained.

The primary factor for the changes in the Companys financial condition
for the three months ended November 30, 2004 was due to the seasonal needs of the 2004/2005 sugarbeet-processing season. The cash
used to provide for operations of $30.7 million and investing activities of $.3 million was funded through financing activities of
$30.8 million. The net cash provided through financing activities of $30.8 million was primarily provided through proceeds from
the issuance of short-term debt of $32.0 million; offset by payment of long-term debt of $1.2 million.

|Contractual Obligations            | Total |  | Less Than 1 Year |        | 1-3 Years |   | 4-5 Years |  | After5 Years
|---------------------------------- | ----- |  | ---------------- | ------ | --------- | - | --------- |  | ------------
|Long-Term Debt                     |       |  | $                | 27.1MM |           | $ | 3.6MM     |  | $           
|Bonds Payable                      |       |  | $                | 21.9MM |           | $ | 1.0MM     |  | $           
|Operating Leases                   |       |  | $                | 3.1MM  |           | $ | .9MM      |  | $           
|Unconditional Purchase Obligations |       |  |                  | 0      |           |   | 0         |  |             
|Other Long-Term Obligations        |       |  |                  | 0      |           |   | 0         |  |             
|Total Contractual Cash Obligations |       |  | $                | 52.1MM |           | $ | 5.5MM     |  | $           

Capital expenditures for the three
months ended November 30, 2004 totaled $.2 million. Capital expenditures for fiscal year
2005 are currently estimated at $7.0 million.

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PART II.   OTHER INFORMATION

Item 1.   Legal Proceedings
None

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
|-- |  | --------

| | Item #31.1     Section 302 Certification of the President & Chief Executive Officer
Item #31.2     Section 302 Certification of the Executive Vice President & Chief Financial Officer
Item #31.3     Section 302 Certification of the Controller & Chief Accounting Officer
Item #32.1     Section 906 Certification of the Chief Executive Officer and Chief Financial Officer
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|b) |  | Reports on Form 8-K
|-- |  | -------------------

The Company filed the
following Current Reports on Form 8-K during this quarter:

On October 15, 2004, the
Company announced that the board of directors, following the completion of the 2004 fiscal year audit, has approved the final
payment for the 2003 crop of $45.08 per ton of beets harvested (13.918882 cents per pound of sugar). The Board of Directors has
also declared and allocated to shareholders of record, for the 2003 crop, non-qualified allocated patronage totaling $5,128,308 or
$2.26 per ton of beets harvested.

On October 29,
2004, the Company announced that the board of directors, following the review and approval of the 2004-crop business plan, has
determined that the beet payment estimate for the 2004-crop will be $35.02 per ton of harvested beets (12.338768 cents per pound
of sugar).

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SIGNATURES

Pursuant to the requirement 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.

|      | MINN-DAK FARMERS COOPERATIVE                                         
|----- | ---------------------------------------------------------------------
|      |                                                                      
|      | (Registrant)                                                         
|     
|     
|Date: | January 14, 2005                                                     
|      |                                                                      
|      | David H. RochePresident and Chief Executive Officer                  
|     
|Date: | January 14, 2005                                                     
|      |                                                                      
|      | Steven M. CaspersExecutive Vice President and Chief Financial Officer

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