<PAGE>
<PAGE>

             U.S. SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C. 20549

                           FORM 10-QSB

     /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended March 31, 2000

                               OR

    / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
               THE SECURITIES EXCHANGE ACT OF 1934


    For the transition period from ___________ to ___________

                Commission File No. 33-960-70-LA

                THANKSGIVING COFFEE COMPANY, INC.
              (Exact name of small business issuer
                  as specified in its charter)


         California                                      94-2823626
(State or other jurisdiction of                        (IRS Employer
 incorporation or organization)                   Identification Number)

      19100 South Harbor Drive
       Fort Bragg, California                              95437
(Address of principal executive Officers)               (Zip Code)


Issuer's  telephone number, including area code:      (707)  964-0118

      (Former name, former address and former fiscal year,
                 if changed since last report.)

Check  whether  the issuer (1) filed all reports required  to  be
filed by Section 13  or  15(d) of the Securities Exchange Act of 1934
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 \ \

As of April 20, 2000, there were 1,237,384  shares issued and
1,234,544 shares outstanding of common stock of the issuer.

Traditional Small Business Disclosure Format (check one):

               Yes \X\                        No \ \

<PAGE>
<PAGE>

                THANKSGIVING COFFEE COMPANY, INC.

                              INDEX

						       Page No.

PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements
          Report of Independent Accountants                3

          Balance Sheet at March 31, 2000 and
	  December 31, 1999			           4

          Statements of Income for the Three Months
	  Ended March 31, 2000 and March 31, 1999          6

          Statements of Cash Flows for the Three
	  Months Ended March 31, 2000 and March 31,
	  1999						   7

          Notes to Financial Statements                    8

Item 2.   Management's Discussion and Analysis of
	  Financial Condition and Results of Operations   24


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                               29

Item 2.   Changes in Securities                           30

Item 3.   Defaults Upon Senior Securities                 30

Item 4.   Submission of Matters to a vote of
	  Security-Holders				  30

Item 5.   Other Information				  30

Item 6.   Exhibits and Reports on Form 8-K		  30













				 2
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<PAGE>

PART I - FINANCIAL INFORMATION


ITEM 1.   FINANCIAL STATEMENTS

                Report of Independent Accountants


To the Board of Directors
Thanksgiving Coffee Company, Inc.
Fort Bragg, California


We  have  reviewed the accompanying balance sheet  of  Thanksgiving
Coffee  Company,  Inc.,  as  of March 31,  2000,  and  the  related
statements  of income, accumulated deficit and cash flows  for  the
three  month  period then ended, in accordance with  Statements  on
Standards for Accounting and Review Services issued by the American
Institute   of  Certified  Public  Accountants.   All   information
included in these financial statements is the representation of the
management of Thanksgiving Coffee Company, Inc.

A review consists principally of inquiries of company personnel and
analytical   procedures   applied  to  financial   data.    It   is
substantially  less  in  scope than an  audit  in  accordance  with
generally accepted auditing standards,  the objective of  which  is
the  expression  of  an opinion regarding the financial  statements
taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications
that  should  be made to the accompanying financial  statements  in
order  for  them  to  be  in  conformity  with  generally  accepted
accounting principles.


SALLMANN, YANG & ALAMEDA
An Accountancy Corporation


/s/ Kathleen M. Alameda

Kathleen M. Alameda
Certified Public Accountant



May 8, 2000







				 3
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 Thanksgiving Coffee Company, Inc.
         Balance Sheet

                                 March 31,
                                   2000
				----------
Assets
Current assets
  Cash                          $    67,493
  Accounts receivable               363,776
  Note receivable-Griswold           10,000
  Employee receivable                   921
  Inventory                         511,068
  Prepaid expenses                   70,601
				 ----------
Total current assets              1,023,859

Property and equipment
  Property and equipment          2,248,457
  Accumulated depreciation       (1,450,059)
				 ----------
Total property and equipment        798,398

Other assets
  Deposits and other assets          45,000
  Note receivable-Griswold           12,028
  Intangibles, net of               246,692
   amortization
  Deferred tax asset                 28,001
				 ----------
Total other assets                  331,721
				 ----------
Total assets                    $ 2,153,978
				 ==========

Liabilities and stockholders'equity
 Current liabilities
  Accounts payable              $   426,697
  Notes payable-banks, current       80,163
   portion
  Notes payable-other, current       37,063
   portion
  Notes payable-shareholders,        24,919
   current portion
  Capital lease obligations,         59,075
   current portion
  Accrued liabilities                66,254
  Deferred income taxes                 370
				 ----------
Total current liabilities           694,541




				 4
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<PAGE>

Long term debt
  Notes payable                     618,543
  Capital lease obligations          37,868
				 ----------
Total long term debt                656,411

				 ----------
Total liabilities                 1,350,952
				 ----------

Stockholders' equity
  Common stock, no par value,
    1,960,000 shares authorized,
    1,237,384 shares issued,
    1,234,544 shares outstanding    861,816
  Additional paid in capital         24,600
  Accumulated deficit               (83,390)
				 ----------
Total stockholders' equity          803,026
				 ----------
Total liabilities and
stockholders' equity            $ 2,153,978
				 ==========

See accompanying notes to financial statements and Accountants' report.





























				 5
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   Thanksgiving Coffee Company, Inc.
          Statement of Income
Three Month Period Ended March 31, 2000


Income
  Net sales 			$  1,294,702
  Cost of sales                      670,482
				 -----------
Gross profit                         624,220

Operating expenses
  Selling, general and               534,136
   administrative expenses
  Depreciation and amortization       50,925
				 -----------
Total operating expenses             585,061
				 -----------
Operating income                      39,159

Other income (expense)
  Interest income                        690
  Miscellaneous income                   171
  Interest expense                   (28,985)
				 -----------
Total other income (expense)         (28,124)
				 -----------
Income before income taxes            11,035
Income tax expense                      (800)
				 -----------
Net income                      $     10,235
				 ===========

Earnings per share (basic)      $      0.008

Earnings per share (dilutive)   $      0.008

See accompanying notes to financial statements and Accountants' report.
















				 6
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   Thanksgiving Coffee Company, Inc.
        Statement of Cash Flows
Three Month Period Ended March 31, 2000

 Operating activities
 Net income                     $     10,235
 Noncash items included in net
  income
     Depreciation and amortization    56,557
 Changes in operating assets and
  liabilities
   Receivables                        31,332
   Inventory                         (23,789)
   Prepaid expenses                  (13,451)
   Deposits and other assets          (2,660)
   Accounts payable                   19,774
   Accrued liabilities                24,489
				 -----------
 Net cash provided by operating      102,487
  activities

 Investing activities
   Purchases of equipment            (30,381)
				 -----------
 Net cash used by investing          (30,381)
  activities

 Financing activities
   Repayments of notes payable       (45,769)
    and capital leases		 -----------
 Net cash used by financing          (45,769)
  activities

 Net increase in cash                 26,337
 Cash at January 1, 2000              41,156
				 -----------
 Cash at March 31, 2000         $     67,493
				 ===========

See accompanying notes to financial statements and Accountants' report.














				 7
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                THANKSGIVING COFFEE COMPANY, INC.

                  Notes to Financial Statements


1. Summary of Significant Accounting Policies

Description of Business

Thanksgiving Coffee Company, Inc. (The Company), is a corporation
that  purchases  and roasts high-quality whole bean  coffees  and
sells  them  to  restaurants, grocery  stores  and  other  retail
outlets.   These  products  are sold primarily  through  its  own
distribution   network   in   the   Northern   California   area.
Distributors  and  retailers do not  have  the  right  to  return
products.  Additionally, the Company produces and sells a line of
high-quality  tea products under the trademark of  Royal  Gardens
Tea  Company.   The Company also sells coffee,  tea  and  related
specialty  products through mail order on a national basis.   The
Company  sells  sandwiches, pastries, coffee and  tea  through  a
bakery located in Mendocino, California.  During 1998 the company
subleased a cafe located in Fort Bragg, California.  In 1997, the
Company  purchased  and sold a subsidiary, a wholesale  purchaser
and   distributor  of  coffee  beans,  located   in   Emeryville,
California.

Basis of Presentation

The  Company has prepared the financial statements on the accrual
basis   of  accounting  in  accordance  with  generally  accepted
accounting principles.  The Company grants credit to customers in
the  retail  and food service industries throughout the  country.
Consequently,  the Company's ability to collect the  amounts  due
from  customers  are  affected by economic  fluctuations  in  the
retail and food service industries.

Inventory

Inventory  is  stated at the lower of cost or  market  (first-in,
first-out).

Property and Equipment

Property  and  equipment  are carried at  cost  less  accumulated
depreciation.  Depreciation is provided on the straight-line  and
150%  declining  balance  methods  over  estimated  useful  lives
generally ranging from five to twelve years.

Leasehold improvements are carried at cost and are amortized over
the  shorter of their estimated useful lives or the related lease
term  (including options), generally ranging from five to thirty-
nine years.


				 8
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)

The portion of depreciation and amortization expenses related  to
production facilities is included in cost of sales.

Expenditures  for  major  renewals that extend  useful  lives  of
property,    fixtures   and   improvements    are    capitalized.
Expenditures for maintenance and repairs are charged  to  expense
as incurred.

For   income  tax  purposes,  depreciation  is  computed  using  the
accelerated  cost  recovery system and the  modified  cost  recovery
system.

Trademarks and Tradenames

Trademarks  and  tradenames are being amortized on  a  straight-line
basis  over  forty (40) years.  Total amortization expense  for  the
three month period  ended March 31, 2000 is $42.

Investments in Consolidated Companies

On  January 1, 1997, the Company acquired the assets and liabilities
of  Sustainable  Harvest, Inc., in a business combination  accounted
for as a purchase.   The Company subsequently sold the subsidiary at
a  loss  of  $29,471 on November 1, 1997.  The Company  has  a  note
receivable  reflected on the books as a result of the sale,  with  a
balance of $22,028 as of March 31, 2000.

On  October  31, 1996, the Company acquired the assets of  Mendocino
Bakery, Inc. in a business combination accounted for as a purchase.

Profit Sharing Plan

The Company has a profit sharing plan covering substantially all  of
its  employees.   Benefits are based upon years of service  and  the
employee's   compensation   during  the   employment   period.    No
contributions  to the profit sharing plan were made  for  the  three
month period ended March 31, 2000.

Futures and Options Contracts

The  Company occasionally enters into exchange traded coffee futures
and options contracts with the objective of minimizing cost risk due
to market fluctuations.  The Company does not define contracts as  a
hedge   as   it  applies  to  accounting  principles  and  practices
designated  in Statement of Financial Accounting Standards  No.  80,
Accounting  for  Futures  Contracts.  Accordingly,  changes  in  the

				 9
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)

1. Summary of Significant Accounting Policies (continued)

market value of futures contracts (unrealized gains and losses)  are
reported by the Company in the period in which the change occurs and
are included as a component of stockholders' equity.  Realized gains
and losses are a component of costs of goods sold.

Compensated Absences

Employees  of the Company are entitled to paid vacation,  paid  sick
days  and personal days off, depending on job classification, length
of service, and other factors.

Advertising

The  Company  expenses  costs  of advertising  the  first  time  the
advertising  takes place, except direct-response advertising,  which
is  capitalized  and amortized over its expected  period  of  future
benefits.   Direct-response advertising consists primarily  of  mail
order  catalog  costs,  typically  mailed  to  customers  who   have
specifically responded to this type of advertising.  The mail  order
department  documents  whether orders come from  catalogs  or  other
sources  when  processing orders.  Catalog costs are amortized  over
the  period  from  the  catalog mailing until the  next  catalog  is
issued.

Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and  assumptions that affect the amounts reported in  the  financial
statements and accompanying notes.  Actual results could differ from
those estimates.


2. Accounts Receivable

Accounts receivable consist of the following:

   Accounts receivable                      $   367,635
   Less: Allowance for doubtful accounts         (3,859)
                                             ----------
   Accounts receivable, net                 $   363,776
                                             ==========

The  Company  uses the allowance method for uncollectible  accounts.
Bad debt expense for the three month period ended March 31, 2000  is
$3,105.  The adjustment to the allowance account for the three month
period ended March 31, 2000 is ($15,182).

				10
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


3. Inventory

Inventory consists of the following:

   Coffee
      Unroasted                                         $   180,554
      Roasted                                               121,394
   Tea                                                       19,811
   Packaging, supplies and other merchandise held for sale  189,309
                                                          ---------
     Total inventory                                     $  511,068
                                                          =========


4. Property and Equipment

Property and equipment consists of the following:

   Equipment and fixtures                  $ 1,190,168
   Furniture and equipment                     276,590
   Leasehold improvements                      370,115
   Transportation equipment                     72,312
   Marketing equipment                          36,205
   Property held under capital leases          303,067
                                             ---------
   Total property and equipment              2,248,457
   Accumulated depreciation                 (1,450,059)
                                             ---------
   Property and equipment, net             $   798,398
                                             =========

Marketing equipment includes costs to develop a website for  on-line
sales  and  promotion.  The costs related to the website  are  being
depreciated on the straight-line method over three years.

Depreciation expense for the three month period ended March 31, 2000
is $52,336.












				11
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


5. Intangible Assets

Intangible  assets represent the costs associated with the  acquired
divisions  over  the  fair value of their  net  assets  at  date  of
acquisition.  The detail of the intangible assets are as follows:

   Goodwill                                 $   198,000
   Leasehold value                               67,000
   Start-up costs                                34,882
   Organizational costs                          28,565
   Trademark                                      5,127
                                             ----------
   Total intangible assets                      333,574
   Accumulated amortization - goodwill          (17,344)
   Accumulated amortization - other
    intangible assets      			(69,538)
                                             ----------
   Intangible assets, net                   $   246,692
                                             ==========

Goodwill,  which  represents the excess of  the  cost  of  purchased
companies  over  the  fair  value of the  net  assets  at  dates  of
acquisition,  is  being amortized on the straight-line  method  over
thirty-nine years.

Amortization expense for the three month period ended March 31, 2000
is $4,221.


6.   Long Term Debt

Notes Payable as of March 31, 2000

Note payable to Wells Fargo Bank, monthly          $531,445
installments of $5,014 plus interest at 2.75%
over prime rate beginning February 15, 1999,
final payment is due on January 15, 2001.  The
note payable is collateralized by a security
interest of first priority in all accounts
receivable, inventory, equipment, fixtures and
improvements.

Note payable to Wells Fargo Bank, payable in        $48,334
monthly installments of $1,667 plus interest at
1% over prime rate, final payment is due on
August 15, 2002.  The note is secured by all
accounts receivable, inventory, equipment,
fixtures and improvements.

				12
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)

Notes Payable as of March 31, 2000 (continued)

Note payable to majority shareholders, Paul and     $24,919
Joan Katzeff, payable in monthly installments of
interest only at 12%, with balance due on demand
after June 30, 1996.  The shareholders have
subordinated this note to all notes payable
including Wells Fargo Bank as described above.

Note payable to Laoma Yaski for the purchase of    $155,990
Mendocino Bakery, payable in monthly
installments of $4,249, including interest at
10%, secured by property and equipment at the
bakery, final payment due in August 2003.

Note payable to Chase Manhattan Bank, payable in    $14,683
monthly installments of $324, including interest
at 8.637%, secured by a vehicle, final payment
due in October 2004.


Obligations Under Capital Lease as of March 31, 2000

Note payable to Manifest Group, payable in           $9,612
monthly installments of $1,030, including
interest at 15.315%, secured by equipment, final
payment due in January 2001.

Note payable to Imperial Capital, payable in         $7,772
monthly installments of $840, including interest
at 17.263%, secured by equipment, final payment
due in January 2001.

Note payable to Granite Financial, payable in       $15,232
monthly installments of $1,139, including
interest at 17.607%, secured by equipment, final
payment due in June 2001.

Note payable to First Sierra Computer Equipment,    $26,039
payable in monthly installments of $1,297,
including interest at 14.00%, secured by
equipment, final payment due in February 2002.

Note payable to Security Financial, payable in      $18,003
monthly installments of $910, including interest
at 15.529%, secured by equipment, final payment
due in February 2002.



				13
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               Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)

Obligations Under Capital Lease as of March 31, 2000 (continued)

Note payable to Centerpoint, payable in monthly      $5,601
installments of $517, including interest at
19.225%, secured by equipment, final payment due
in March 2001.					   --------

                                                   $857,630
Less current portion                               (201,219)
                                                   --------
Long term portion of notes payable and capital     $656,411
leases


All  of  the  above  notes payable and capital  leases  with  the
exception  of  the First Sierra Computer Equipment capital  lease
and  Manifest  Group  lease,  are personally  guaranteed  by  the
Company's majority shareholders.

Interest paid for the three month period ended March 31, 2000  is
$28,985.

Maturities of notes payable and capital leases are as follows:

   2000                        $   195,445
   2001                            546,162
   2002                             64,959
   2003                             47,946
   2004                              3,118
   Thereafter                            -
                                ----------
                               $   857,630
                                ==========

Based  on  current borrowing rates, the fair value of  the  notes
payable and capital leases approximate their carrying amounts.


7. Income Taxes

The  components of the provision for income taxes for  the  three
month period ended March 31, 2000 is as follows:

   State-current                    $   800

The  Company computes income taxes using the asset and  liability
method  under  which  deferred  income  taxes  are  provided  for



				14
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                Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


temporary  differences  between  the  financial  basis   of   the
Company's  assets  and  liabilities.   Deferred  tax  liabilities
recognized for taxable temporary differences are not material for
the  three month period ended March 31, 2000.  The Company has  a
California  manufacturer's credit carryforward of  $24,043  which
may be used to offset California income taxes in the future.

The Company has net operating loss and contribution carryovers to
offset future income tax.  If not used, these credits will expire
as follows:

Federal
   Years ending                  Net Operating
   December 31   Contributions       Loss            Total
   -----------   -------------   -------------     ----------
     2000          $  6,403        $        -      $    6,403
     2001             9,029                 -           9,029
     2002            11,419                 -          11,419
     2003            11,289                 -          11,289
     2012              -              584,581         584,581
     2013              -              128,576         128,576
                    _______         _________       _________
                   $ 38,140        $  713,157      $  751,297
                    =======         =========       =========

California
   Years ending                  Net Operating
   December 31   Contributions       Loss            Total
   -----------   -------------   -------------     ----------
     2002          $  1,091        $  239,201      $  240,292
     2003            11,289            64,341          75,630
     2004            14,863                 -          14,863
                    _______         _________       _________
                   $ 27,243        $  303,542      $  330,785
                    =======         =========       =========


Income taxes paid for the three month period ended March 31, 2000
is $800.


8. Operating Leases

The  Company  leases  its delivery fleet, other  vehicles  and  some
office  equipment under noncancellable operating leases  with  terms
ranging from three to five years.



				15
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                Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


Minimum  annual  lease payments due under these  agreements  are  as
follows:

   2000                         $    71,983
   2001                              57,462
   2002                              19,984
   2003                               5,201
   Thereafter                             -
                                  ---------
                                 $  154,630
                                  =========

Total  operating  lease payments are $24,000  for  the  three  month
period ended March 31, 2000.


9. Common Stock
                                            Number of          No Par
                                               Shares           Value
                     			    -------------------------
   Balance, December 31, 1996               1,237,039      $  874,666
   Issuance of stock                              345             150
   Repurchase of stock                           (640)         (2,000)
                      			    -------------------------
   Balance, December 31, 1997               1,236,744         872,816
   No activity                                      -               -
                     			    -------------------------
   Balance, December 31, 1998               1,236,744         872,816
   Repurchase of stock                         (2,200)        (11,000)
                                            -------------------------
   Balance, December 31, 1999               1,234,544         861,816
   No activity                                      -               -
   Balance, March 31, 2000                  1,234,544      $  861,816
                                            =========================

981,000 shares originally issued are restricted.


10. Stock Option Purchase Plan

Under  the  terms of its stock option purchase plan (see  note  13),
options to purchase shares of the Company's common stock are granted







				16
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                Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


at a price of $5 per share.  Options may be exercised until December
31, 2000.  Following is a summary of transactions:

                                  Shares Under Option

   Outstanding, beginning of year         20,000
   Shares expired during the year              -
   Shares exercised during the year       (3,000)
                                       ---------
   Outstanding, as of March 31, 2000      17,000
                                       =========


11. Long Term Lease

The   Company  leases  its  corporate  headquarters,  warehouse  and
waterfront  facilities  from Paul and Joan  Katzeff  (the  Company's
majority  shareholders).   The  lease provides  for  monthly  rental
payments  of  $8,600  and the Company is responsible  for  all  real
estate  taxes,  insurance  and  maintenance  costs  related  to  the
facilities.   The  lease  provides  for  periodic  cost  of   living
increases  during  the  term  of the  lease,  including  the  option
periods.  The Company exercised the first of four five-year  options
on  March  31, 1995.  The lease was extended on March 31,  2000  for
sixty  days  until  May 31, 2000, and the Company intends  to  fully
renew the lease at that time.

Any  deferred  amounts  are due based upon available  cash  flow  as
determined  by  the  Company's management  or  upon  demand  of  the
Company's  majority shareholders.  Rental expense  under  the  above
lease  is $25,800. for the three month period ended March 31,  2000.
The Company has made substantial leasehold improvements (Note 4) and
intends to exercise all options under the terms of this lease.

The  Company leases a bakery establishment in Mendocino, California.
The  lease  provides for monthly rental payments of  $3,115  (as  of
March 31, 2000) and the lease term expires in September 2000.

The Company leases retail space in Fort Bragg, California used as an
espresso  bar/caf.  The lease provides for monthly rental  payments
of  $766,  and the lease expires in January 2001, with an option  to
renew  for another five years.  The lease also provides for periodic
cost of living increases during the term of the lease, including the
option  periods.  In February 1998, the caf business was terminated
and the facility was subleased.




				17
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                Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


11. Long Term Lease (continued)

Minimum future rental payments for all leases are as follows:

   2000                         $    62,448
   2001                                 767
   2002 and thereafter                    -
                                 ----------
                                $    63,215
                                 ==========


12. Related Party Transactions

The  Company has an interest only note payable due on demand  and  a
principal  and interest note payable to Paul and Joan  Katzeff  (the
Company's  majority shareholders) at March 31,  2000  (See  Note  6,
above).   The  Company  also  leases properties  from  its  majority
shareholders (See Note 11, above).


13. Commitments

Under  the terms of an agreement with the subsidiary sold  in  1997,
the  Company is required to purchase coffee beans each year for  the
next  five  years ending December 31, 2002 at a predetermined  price
per pound over landed coffee costs.

The  Company  purchased  a  bakery from  Laoma  Yaski  in  1996  for
$350,000.  The Company agreed to pay an additional $25,000 to  Laoma
Yaski  upon the seven year anniversary of the purchase provided  she
does  not  own,  manage  or operate a bakery  within  250  miles  of
Mendocino, California.

Under  the terms of an agreement with a past officer of the Company,
the Company may purchase options under the following terms:

                    Number
                 Of Shares             Total
		 ---------	       -----
   2000              1,000          $  3,500

A  remaining 16,000 options may be exercised or sold at any time  at
the  discretion  of the past officer subject to the Company's  first
right of refusal.




				18
<PAGE>
<PAGE>

                Thanksgiving Coffee Company, Inc.

            Notes to Financial Statements (continued)


14. Contingent Liabilities

The Company is engaged in litigation initiated by a former employee,
who  is  seeking damages based upon claims of wrongful  termination,
breach   of  an  employment  contract,  break  of  fiduciary   duty,
fraudulent  inducement  and accounting.  The Company  is  vigorously
defending  this  matter and has pursued related  cross-claims.   The
ultimate outcome of this matter and the effect of an adverse result,
if any, cannot be determined at this time.


15. Subsequent Events

The  Company  is actively pursuing the sale of the Mendocino  Bakery
and has listed the business with a real estate agent.



ITEM 2.   COMPARATIVE FINANCIAL DATA

                THANKSGIVING COFFEE COMPANY, INC.

                          BALANCE SHEET

                   ASSETS

                                March 31, 2000       December 31, 1999
                                --------------       -----------------
                                Reviewed                       Audited
                                ---------                      -------

CURRENT ASSETS
   Cash                             $   67,493              $   41,156
   Short Term Investments                    0                       0
   Accounts Receivable                 363,776                 394,983
   Employee Receivable                     921                   1,046
   Inventory                           511,068                 487,279
   Other Receivable & Prepaids          80,601                  67,150
                                    ----------              ----------
        Total Current Assets         1,023,859                 991,614

PROPERTY AND EQUIPMENT
Property Fixtures &
 Equipment                           2,248,457               2,218,076
   Accumulated
       Depreciation                 (1,450,059)             (1,397,723)
                                    ----------              ----------
       Total Property & Equipment      798,398                 820,353

				19
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                THANKSGIVING COFFEE COMPANY, INC.

                    BALANCE SHEET (continued)


OTHER ASSETS
       Deposits And Other
         Assets                         85,029                  82,369
         Intangibles, Net Of
         Amortization                  246,692                 250,913
                                    ----------              ----------

         Total Other Assets            331,721                 333,282
                                    ----------              ----------
         Total Assets                2,153,978               2,145,249
                                    ==========              ==========


See accompanying notes to financial statements.



































				20
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<PAGE>

                THANKSGIVING COFFEE COMPANY, INC.

                    BALANCE SHEET (continued)


        LIABILITIES AND STOCKHOLDERS' EQUITY


                                  March 31, 2000    December 31, 1999
                                  --------------    -----------------
                                  Reviewed                    Audited
                                  --------                    -------

CURRENT LIABILITIES
   Accounts Payable                   $  426,697           $  406,923
   Notes Payable - Banks
     Current Portion                      80,163              116,930
   Current Portion of Long-
       Term Debt - Other                 121,057               99,737
   Accrued Liabilities                    66,624               41,765
                                      ----------           ----------
         Total Current Liabilities       694,541              665,355


LONG-TERM LIABILITIES
   Notes Payable                         618,543              624,091
   Capital Lease Obligations              37,868               58,094
                                      ----------           ----------
       Total Long Term Liabilities       656,411              662,185


STOCKHOLDERS' EQUITY
   Common Stock - No Par Value
   1,960,000 Shares Authorized,
   1,237,384 Shares Issued, and
   1,234,544 Outstanding at
    March 31, 2000                       861,816              861,816
   Additional Paid-In Capital             24,600               24,600
   Unrealized Gain on Investments              0                    0
   Retained Earnings                    ( 83,390)            ( 93,625)
                                      ----------           ----------
       Total Stockholders' Equity        803,026              792,791
                                      ----------           ----------
       Total Liabilities & Equity      2,153,978            2,145,249
                                      ==========           ==========


See accompanying notes to financial statements.






				21
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<PAGE>


                THANKSGIVING COFFEE COMPANY, INC.


                      STATEMENTS OF INCOME


                                  Three Months Ended
                                March 31,      March 31,
                                  2000           1999
                                 Reviewed      Compiled
                                ----------     ---------

Net Sales                       1,294,702      1,279,039
Cost Of Sales                     670,482        734,126
                                ---------      ---------
     Gross Profit                 624,220        544,913


OPERATING EXPENSES
   Selling, General &
     Administration               534,136        452,919
   Depreciation &
     Amortization                  50,925         44,073
                                ---------      ---------
     Total Operating
       Expenses                   585,061        496,992
                                ---------      ---------
     Operating Income
       (Loss)                      39,159        47,921


OTHER (INCOME) EXPENSE
   Interest (Income)                 (690)          (962)
   Interest Expense                28,985         30,011
   Misc. (Income) Expense            (171)          2,176
                                ---------      ---------
       Total Other (Income)
         Expense                   28,124         31,225
                                ---------      ---------
       Income (Loss) Before
         Taxes                     11,035         16,696
                                ---------      ---------
   Tax Expense (Credit)               800              0

                                ---------      ---------
   Net Income (Loss)               10,235         16,696
                                =========      =========


See accompanying notes to financial statements.



				22
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<PAGE>

                THANKSGIVING COFFEE COMPANY, INC.

                     STATEMENTS OF CASH FLOW

                                       Three Months Ended
                                  Mar 31, 2000      Mar 31, 1999
                                    Reviewed          Compiled
                                  ------------      ------------

CASH FLOWS FROM OPERATING
 ACTIVITIES
Net Income (Loss)                    $  10,235         $  16,696
Non Cash Items Included Net
   Income (Loss)
   Depreciation &
   Amortization                         56,557            49,433
   (Increase) Decrease In:
        Receivables                     31,332            43,687
        Inventory                      (23,789)           82,153
        Commodities Options Account          0            (7,235)
        Prepaid Expenses/
         Other Receivables             (13,451)           (5,305)
        Deposits/Other                  (2,660)             (293)
   Increase (Decrease) In:
        Accounts Payable                19,774           (79,320)
        Accrued Liabilities             24,489               (45)
        Deferred Inc. Taxes                  0                 0
                                      --------         ---------
     Net Cash Provided By
      Operating Activities             102,487            99,771

CASH FLOWS FROM INVESTING
 ACTIVITIES
   Purchase Of Equipment               (30,381)          (32,010)
   Purchase Of Intangible Assets             0                 0
   Repurchase of Common Stock                0           (11,198)
   Unrealized Gain (Loss) on                 0                 0
    Investments                       --------         ---------
   Net Cash Used By
     Investing Activities              (30,381)          (43,208)
                                      --------         ---------
CASH FLOWS FROM FINANCING
 ACTIVITIES
   (Repayment) Proceeds of
    Notes Payable                      (45,769)          (30,028)
   (Increase) Decrease of
    Notes Receivable                         0                 0
                                      --------         ---------
   Net Cash Used By
    Financing Activities               (45,769)          (30,028)
                                      --------         ---------

See accompanying notes to financial statements.

				23
<PAGE>
<PAGE>

                THANKSGIVING COFFEE COMPANY, INC.


Statements Of Cash Flow  (continued)

                                       Three Months Ended
                                  Mar 31, 2000     Mar 31 1999
                                  Reviewed            Compiled
                                  ------------     -----------

Net Increase (Decrease) In Cash         26,337         26,535


Cash, As Of January 1, 2000
 And January 1, 1999                    41,156         89,725
                                       --------       --------

Cash, As Of March 31, 2000
 And March 31, 1999                  $  67,493       $116,259
                                     =========       ========


MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

FORWARD LOOKING STATEMENTS

In  addition to historical information, this Quarterly Report  on
Form  10-QSB  contains  forward-looking  statements  within   the
meaning of Section 27A of The Securities Act and Section  21E  of
The  Securities Exchange Act of 1934.  Words such  as  "believe,"
"anticipate,"  "expect,"  "intend," "plan,"  "will,"  "may,"  and
other  similar  expressions identify forward-looking  statements.
In   addition,   any  statements  that  refer  to   expectations,
projections  or  other  characterizations  of  future  events  or
circumstances  are forward-looking statements.  These  statements
relate  to, among other things, planned expansions into  new  and
existing  markets  and trends in the operations  of  Thanksgiving
Coffee  Company, Inc. (the Company).  Any such statements  should
be  considered  in light of various risks and uncertainties  that
could  cause  results  to  differ materially  from  expectations,
estimates   or  forecast  expressed.   The  various   risks   and
uncertainties include, but are not limited to: changes in general
economic conditions, changes in business conditions in the coffee
industry, fluctuations in consumer demand for coffee products and
in   the   availability  and  costs  of  green  beans,  increased
competition  within  the  Company's  businesses,  variances  from
budgeted  sales mix and growth rate, consumer acceptance  of  the
Company's  new products, inability to secure adequate capital  to
fund  its  operating  expenses and working capital  requirements,
inability   to  hire,  train  and  retain  qualified   personnel,
concentration of production and sales in Northern California, the


				24
<PAGE>
<PAGE>


loss  of  one  or more major customers, inability to successfully
implement  its business plan, natural disasters, civil unrest  in
countries  which produce coffee and tea, weather and other  risks
identified  herein.   Readers are cautioned not  to  place  undue
reliance on these forward-looking statements which speak only  as
of the date of this 10-QSB.


Three Months Ended March 31, 2000 Compared With
Three Months Ended March 31, 1999

          Consolidated        Increase (Decrease)

          Net Sales                          $  15,663
          Cost of Sales                     ($  63,644)
          Gross Margin                            5.6%
          Selling, G&A Expense               $  81,217
          Depreciation & Amortization        $   6,852
          Interest Expense                  ($   1,026)
          Net Income                        ($   6,461)

Consolidated net sales for the three months ended March 31, 2000
were $1,294,702, a 1.2% increase over net sales of $1,279,039 for
the same period in fiscal 1999.

The Company's coffee sales increased by .7% or approximately
$8,000 for the three months ended March 31, 2000 compared to the
same period in fiscal 1999. While national revenues declined by
approximately $52,000, distribution sales and mail order revenues
increased by approximately $58,000 and $2,000 respectively in the
three month period ending March 31, 2000 compared to the same
period in 1999.  The drop in national revenues is attributed to
two customers who chose local roasters.

The bakery sales grew 4.2% or nearly $6,000 during that same
period reflecting a good volume in February 2000.

Consolidated gross margin (gross profit as a percentage of net
sales) increased to 47.8% for the three month period ending
March 31, 2000 from 42.6% for the three months ended March 31,
1999.

The Company's coffee gross margins increased from 46% for the
three months ended March 31, 1999 to 50.7% in the same period of
fiscal 2000.  This increase was due to the average cost of green
beans from $1.87 per pound over the three month period ending
March 31, 1999 compared to $1.73  per pound over the same period
in 2000.

Consolidated selling, general and administrative expenses were
$534,136 for the period ending March 31, 2000; a 17.9% increase


				25
<PAGE>
<PAGE>


over the $452,919 for three months ended March 31, 1999.  This
increase in selling, general and administration expenses was due,
for the most part, to additional staffing expenses.  In late
1999, the sales department added one new employee, and the
accounting department added a controller.  In January 2000,
administration added another position and the sales department
added two manager positions.

Depreciation and amortization expense increased 13.5% from
$44,073 for the three months ended March 31, 1999 to $50,925 for
the same period in 2000 as a result of the purchase of additional
fixed assets.  The increase in fixed assets was a result of web
store and site design and upgrade of computer hardware and
software.

Interest expense decreased 3.4% from $30,011 for the three months
ended March 31, 1999 to $28,985 for the same period in fiscal
2000, as a result of a decrease of $206,383 in total borrowings
from March 31, 1999 to March 31, 2000.  Interest expense as a
percentage of net sales remained the same at 2% for both the
three months ended March 31, 2000 and for the three months ended
March 31, 1999.

Even though the Company realized a profit before taxes for the
three months ending March 31, 2000, it did not incur any tax
expense. Management deemed the recording of any tax liability as
unnecessary since the Company has sufficient tax loss carry
forwards to offset taxable income.

As a result of the foregoing factors, the Company incurred a
consolidated net profit of $10,235 for the three months ended
March 31, 2000 compared with a net profit of $16,696 for the
three months ended March 31, 1999.


LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2000 the Company had positive capital of $329,318.
Net cash provided by operating activities was $102,487 for the
three months ended March 31, 2000 compared to $99,771 provided by
operating activities for the three months ended
March 31, 1999. The increase in net cash provided by operating
activities was primarily due to increases in depreciation,
accounts payable and accrued liabilities of $56,557, $19,774 and
$24,489, respectively, and a $31,332 decrease in accounts
receivable. These increases were offset by increases in
inventory, prepaid expenses, and deposits of $23,789, $13,451,
and $2,660, respectively.

Net cash used by investing activities was $30,381 for equipment
purchased during three month period ending March 31, 2000


				26
<PAGE>
<PAGE>


compared to net cash used by investing activities of $43,208 for
the same period in 1999.

Included in net cash used by financing activities during the
three months ended March 31, 2000 was $45,769 net repayment of
notes payables, primarily for equipment capital leases compared
to $30,028 in the same period for fiscal 1999.

At March 31, 1999, the Company had total borrowings of $857,630,
including $531,445 outstanding to Wells Fargo Bank under the
latest note payable dated January 6, 1999. The borrowings are
secured by the Company's accounts receivable, inventory,
equipment, fixtures and improvements.  The loan terms contain
certain limitations and covenant restrictions, including limits
on the incurrence of additional indebtedness.

The Company is dependent on successfully executing its business
plan to achieve profitable operations, obtaining additional
sources of borrowings (including normal trade credit), and
securing favorable financing arrangements (including lease
financing) to finance its immediate working capital needs.  There
can be no assurance that the Company will be successful in this
regard.  If the Company is not able to meet its credit
obligations the Company's business could be materially and
adversely affected.

The Company maintained a revolving line of credit of up to
$650,000 in fiscal 1998.  The credit agreement was renewed in the
fourth quarter of fiscal 1998; however, in January 1999 this
agreement was renegotiated and replaced with a two year note
payable in the principal amount of $601,636 with a balloon
payment due after the end of two years of $441,199.68.  In the
event that the Company is unable to renegotiate this balloon
payment before it becomes due, the Company's business would be
adversely effected.  The company's aggregate amount of debt at
March 31, 2000 is $857,630.

The Company anticipates that its existing capital resources and
cash generated from operations will be sufficient to meet its
cash requirement for the next 12 months at its anticipated level
of operations.


YEAR 2000

Many computer systems and software applications were expected  to
experience   problems  handling  dates  beyond  the  year   1999.
Computer  systems  and  other equipment with  embedded  chips  or
processors  have historically used two digits, rather than  four,
to  define a specific year.  Many parties anticipated that  these
systems  would  be unable to determine whether  the  digits  "00"


				27
<PAGE>
<PAGE>


referred  to the year 1900 or 2000 and that this could result  in
system  failures  or miscalculations.  It was also  thought  that
this could potentially cause disruptions to the Company's various
activities and operations.

The Company has not experienced any disruptions to its operations
from  the  Year 2000 date change.  The Company will  continue  to
monitor its systems and operations until it is reasonably assured
that no significant business interruptions will occur as a result
of  the  Year 2000 date change.  The Company is not aware of  any
significant Year 2000 related disruptions impacting the Company's
customers,  suppliers,  contractors, financial  institutions  and
other  third  parties with whom the Company  does  business.   To
date,   the  Company  charged  to  expense  or  capitalized,   as
appropriate,  approximately  $14,500  in  effecting   Year   2000
compliance  and  expects any remaining costs  in  effecting  such
compliance will not be material.


SEASONALITY AND OTHER FACTORS AFFECTING PERFORMANCE

The Company's business is seasonal in nature.  The seasonal
availability of green bean coffee in the first two quarters of
the year and increased sales in the last quarter historically
creates a high use of cash and a build up in inventories and
increase in the first two quarters with a corresponding decrease
in inventory and increase in cash in the last quarter.  Because
of the seasonality of the Company's business, results for any
quarter are not necessarily indicative of the results that may be
achieved for the full fiscal year.  Furthermore, past seasonal
patterns are not necessarily indicative of future results. The
Company's future results of operations and earnings could be
significantly affected by other factors, such as changes in
general economic conditions, changes in business conditions in
the coffee industry, fluctuations in consumer demand for coffee
products and in the availability and costs of green coffee beans,
increased competition with the Company's businesses, variances
from budgeted sales mix and growth rate, consumer acceptance of
the Company's new products, inability to secure adequate capital
to fund its operations and working capital requirements,
inability to hire, train and retain qualified personnel,
concentration of production and sales in Northern California, the
loss of one or more major customers, inability to produce coffee
and tea, weather and other natural disasters. There can be no
assurance that sales will increase in future quarters.


INDEMNIFICATION MATTERS

The Company's Bylaws provide that the Company may indemnify its
directors, officers, employees and other agents to the fullest


				28
<PAGE>
<PAGE>


extent permitted by California law.  The Company believes that
indemnification under its Bylaws also permits the Company to
secure insurance on behalf of any officer, director, employee or
other agent for any liability arising out of his or her actions
in such capacity, regardless of whether California law would
permit indemnification.  The Company maintains such liability
insurance for its directors and certain officers and employees.

At present, there is no pending litigation or proceeding
involving any director, officer, employee or agent of the Company
where indemnification would be required or permitted. The Company
is not aware of any pending or threatened litigation or
proceeding that might result in a claim for such indemnification.


SUMMARY OF RECENT DEVELOPMENTS

The Company renegotiated its line of credit with Wells Fargo Bank
in January 1999 to a note payable with the first year payments
based on a ten-year amortization schedule and the second year
payments based on an eight year amortization schedule and a
balloon payment due at the end of the second year.  See
"Management's Discussion and Analysis of Financial Condition and
Results of Operations - Liquidity and Capital Resources."  This
loan is due January 15, 2001 with the balloon payment of $441,200
due at that time.  The Company is currently discussing the
refinancing of the balloon payment.  In the event that the
Company is unable to renegotiate this balloon payment before it
becomes due, the Company's business could be adversely affected.
It is also negotiating with Wells Fargo Bank to refinance its
leases, establish a capital equipment line and develop a working
capital line.  The Company currently has no working capital line
and is using cash and operating revenues to fund its business.
See "Management's Discussion and Analysis of Financial Conditions
- Results of Operations Liquidity and Capital Resources."


PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The Company is engaged in litigation with a former employee who
is seeking damages based upon claims of wrongful termination,
breach of an employment contract, break of fiduciary duty,
fraudulent inducement and accounting.  This action was filed in
the Mendocino County Superior Court on May 18, 1999.  The Company
is vigorously defending this matter and has pursued related cross-
claims.  Damages in an unspecified amount have been alleged.  The
ultimate outcome of this matter and the effect on an adverse
result, if any, cannot be determined at this time.



				29
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<PAGE>


ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS

- Not Applicable -


ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

- Not Applicable -


ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

- Not Applicable -


ITEM 5.   OTHER INFORMATION

- Not Applicable -


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     a.  Exhibits

          27.1  Financial Data Schedule (electronic only)

     b.  Form 8-K

No reports on Form 8-K were filed during the period from January 1,
2000 through March 31, 2000























				30
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<PAGE>

                           SIGNATURES


In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

THANKSGIVING COFFEE COMPANY, INC.


Name                             Title			    Date
----                             -----                      ----


/s/ Paul Katzeff           Chief Executive Officer      May 10, 2000
______________________
   Paul Katzeff


/s/ Joan Katzeff           President                    May 10, 2000
______________________
   Joan Katzeff
































				31
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                          EXHIBIT INDEX


27.1 Financial Data Schedule (electronic only).












































				32