U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


[X]               Quarterly Report under Section 13 or 15 (d) of the
                   Securities Exchange Act of 1934.

                  For the quarterly period ended December 31, 1997.

[ ]               Transition Report under Section 13 or 15 (d) of the
                   Exchange Act.

For the transition period from ___________________ to ________________________.

                        Commission File Number 000-19318

                               SPARTA FOODS, INC.
        (exact name of small business issuer as specified in its charter)

          Minnesota                                         41-1618240
(state or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

                  1565 First Avenue NW, New Brighton, MN 55112
                    (Address of principal executive offices)

                                 (612) 697-5500
                           (Issuer's telephone number)

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

State the number of shares outstanding of each of the Issuer's classes of common
equity, as of the latest practicable date:

              6,798,637 shares of Common Stock at January 21, 1998.

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


<PAGE>

                               SPARTA FOODS, INC.

                                   FORM 10-QSB

                         QUARTER ENDED DECEMBER 31, 1997

                                TABLE OF CONTENTS
                                                                          PAGE
                                                                          ----
PART I.  FINANCIAL INFORMATION

     Item 1.           Financial Statements                                3

                       Condensed Consolidated Balance Sheets
                       at December 31, 1997 and September 30, 1997         3

                       Condensed Consolidated Statements of
                       Operations for the three-month periods
                       ended December 31, 1997 and 1996                    4

                       Condensed Consolidated Statements of
                       Cash Flows for the three-month periods
                       ended December 31, 1997 and 1996                    5

                       Notes to Condensed Consolidated Financial
                       Statements - December 31, 1997                      6

     Item 2.           Management's Discussion and Analysis of             8
                       Financial Condition and Results of
                       Operations


PART II .              OTHER INFORMATION

     Item 6.           Exhibits and Reports on Form 8-K                   12


SIGNATURES                                                                13

EXHIBIT INDEX                                                             14

<PAGE>
                           PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
                               SPARTA FOODS, INC.
                      Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                                         December 31       September 30
                                                                                             1997               1997
                                                                                      ------------------ -------------------
                                                                                         (unaudited)
<S>                                                                                       <C>              <C>
    ASSETS
    Current Assets
       Cash                                                                               $         600    $            600
       Accounts receivable, less allowance of $49,500 at each date                              901,167             833,467
       Inventories:
          Finished goods                                                                        450,051             566,212
          Raw materials and packaging                                                           514,256             531,358
       Prepaid expenses                                                                         152,995             156,466
    --------------------------------------------------------------------------------- ------------------ -------------------
                Total current assets                                                          2,019,069           2,088,103
    --------------------------------------------------------------------------------- ------------------ -------------------
    Property and Equipment                                                                    9,039,523           7,488,786
       Less accumulated depreciation                                                          2,474,659           2,371,131
    --------------------------------------------------------------------------------- ------------------ -------------------
                                                                                              6,564,864           5,117,655
    --------------------------------------------------------------------------------- ------------------ -------------------
    Other Assets
       Restricted cash                                                                          437,212           1,893,967
       Goodwill, less accumulated amortization of $75,774 and $72,564, respectively             437,598             440,808
       Covenants not-to-compete, less accumulated amortization of
          $42,935 and $40,772, respectively                                                      67,065              69,228
       Rental property held for resale, less accumulated depreciation of $45,953 and
         $38,728, respectively                                                                  901,329             906,422
       Other                                                                                    435,086             381,162
    --------------------------------------------------------------------------------- ------------------ -------------------
                                                                                              2,278,290           3,691,587
    ================================================================================= ================== ===================
                                                                                         $   10,862,223      $   10,897,345
    ================================================================================= ================== ===================
    LIABILITIES AND STOCKHOLDERS EQUITY
    Current Liabilities
       Note payable, bank                                                               $     1,213,396     $       834,209
       Current maturities of long-term debt                                                     703,785             700,388
       Accounts payable:
           Trade                                                                                692,436             861,120
           Construction                                                                         403,399             428,315
       Accrued expenses                                                                         363,423             536,033
    --------------------------------------------------------------------------------- ------------------ -------------------
                Total current liabilities                                                     3,376,439           3,360,065
    --------------------------------------------------------------------------------- ------------------ -------------------
    Long-term Debt, less current maturities                                                   3,996,523           4,051,212
    --------------------------------------------------------------------------------- ------------------ -------------------
    Stockholders Equity
       Preferred Stock, authorized 1,000,000 shares,
          no designated par value; none issued                                                     --                 --
       Common Stock, authorized 15,000,000 shares, $.01 par value; issued and
         outstanding 6,798,637 and 6,765,758 shares, respectively                                67,986              67,657
       Additional paid-in capital                                                             4,963,191           4,950,507
       Accumulated deficit                                                                   (1,541,916)         (1,532,096)
    --------------------------------------------------------------------------------- ------------------ -------------------
                                                                                              3,489,261           3,486,068
    ================================================================================= ================== ===================
                                                                                         $   10,862,223      $   10,897,345
    ================================================================================= ================== ===================
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>

                               SPARTA FOODS, INC.
                 Condensed Consolidated Statements of Operations
                                   (unaudited)
<TABLE>
<CAPTION>
                                                                          For the three
                                                                          months ended
                                                                          December 31
                                                                       -----------------
                                                                     1997               1996
                                                                     ----               ----
<S>                                                            <C>                <C>

Net sales                                                      $   3,812,157      $   3,111,222

Cost of sales                                                      2,763,502          2,191,121
------------------------------------------------------------------------------------------------

   Gross profit                                                    1,048,655            920,101

Selling, general, and administrative expenses                      1,004,075            757,285
------------------------------------------------------------------------------------------------

    Operating income                                                  44,580            162,816

Other income  net                                                     38,232             32,037

Interest expense                                                     (91,682)           (82,467)
------------------------------------------------------------------------------------------------

    Income (loss) before income tax                                   (8,870)           112,386

Provision for income tax                                                 950              1,250
------------------------------------------------------------------------------------------------

   Net income (loss)                                          $       (9,820)     $     111,136
================================================================================================

Net Income per common share
   Basic earnings per share                                   $          ---      $         .02
================================================================================================

   Weighted average number of common   shares
     outstanding                                                   6,784,390          6,679,766
================================================================================================

   Diluted earnings per share                                 $          ---      $         .01
================================================================================================

   Weighted average number of common
      and common equivalent shares                                       ---          8,415,250
================================================================================================
</TABLE>
See Notes to Condensed Consolidated Financial Statements.

<PAGE>

                               SPARTA FOODS, INC.
                 Condensed Consolidated Statements of Cash Flows
                                   (unaudited)
<TABLE>
<CAPTION>
                                                                                            For the three months
                                                                                             ended December 31
                                                                                           --------------------------
                                                                                               1997             1996
                                                                                               ----             ----
<S>                                                                                    <C>               <C>
Cash Flows from Operating Activities
   Net income (loss)                                                                   $       (9,820)    $    111,136
   Adjustments to reconcile net income (loss) to net cash
      used in operating activities:
         Depreciation                                                                         145,083          120,147
         Amortization                                                                          15,190           25,511
         Changes in assets and liabilities:
            Accounts receivable                                                               (67,700)         (78,524)
            Inventories                                                                       133,263         (137,464)
            Prepaid expenses                                                                    3,471          (26,739)
            Accounts payable and accrued expenses                                            (341,294)        (355,742)
-----------------------------------------------------------------------------------------------------------------------
                 Net cash used in operating activities                                       (121,807)        (341,675)
-----------------------------------------------------------------------------------------------------------------------
Cash Flows from Investing Activities
   Decrease in restricted cash                                                              1,456,755              ---
   Purchases of equipment                                                                  (1,660,560)        (167,811)
   Increase in deposits and other assets                                                      (10,484)           63,755
-----------------------------------------------------------------------------------------------------------------------
                 Net cash used in investing activities                                       (214,289)        (104,056)
-----------------------------------------------------------------------------------------------------------------------

Cash Flows from Financing Activities
   Net borrowings on line of credit                                                           379,187          611,105
   Long-term borrowings, net                                                                  (51,292)        (159,201)
   Issuance of Common Stock, net of costs                                                      13,013            2,450
   Deferred financing costs                                                                    (4,812)              ---
-----------------------------------------------------------------------------------------------------------------------
                 Net cash provided by financing activities                                    336,096          454,354
-----------------------------------------------------------------------------------------------------------------------
                 Net increase in cash                                                             ---            8,623
Cash Balance
   Beginning of period                                                                            600              600
=======================================================================================================================
   End of period                                                                        $         600    $        9,223
=======================================================================================================================

Supplemental Disclosures of Cash Flow Information
   Cash payments for:
      Interest                                                                          $      87,519    $      81,992
      Income taxes                                                                              2,000            1,250
=======================================================================================================================

Supplemental Schedule of Noncash Investing Activities
   Facility improvements financed with accounts payable                                  $    403,399    $         ---
=======================================================================================================================
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>



                               Sparta Foods, Inc.
              Notes to Condensed Consolidated Financial Statements
                                December 31, 1997
                                   (unaudited)

NOTE 1.  GENERAL

     The unaudited  condensed  consolidated  balance sheet at December 31, 1997,
     the condensed  consolidated  statements of operations  for the  three-month
     periods ended  December 31, 1997 and 1996,  and the condensed  consolidated
     statements of cash flows for the  three-month  periods  ended  December 31,
     1997 and 1996,  include all adjustments  which in the opinion of management
     are necessary in order to make the financial statements not misleading, and
     are not necessarily  indicative of results of operations to be expected for
     the entire fiscal year ending September 30, 1998.

     The unaudited  financial  statements should be read in conjunction with the
     audited  financial  statements  for the years ended  September 30, 1997 and
     1996, contained in Form 10-KSB and Management's  Discussion and Analysis of
     Financial Condition and Results of Operations contained herein.


NOTE 2.  FINANCING AGREEMENTS

     The  Company  has a line of  credit  with a bank,  secured  by all  assets.
     Maximum borrowings under the credit agreement are determined by a borrowing
     base calculation or $1,200,000, whichever is less. Borrowings bear interest
     at prime plus 0.25 percent (8.75 percent at December 31, 1997). At December
     31, 1997, the Line of Credit and additional  revolving credit borrowings of
     $800,000  were  fully  utilized,   and  the  Bank  has  extended  temporary
     overadvances.  The additional bank revolving credit  borrowings of $800,000
     were made  available  through  January 1, 1998 to provide the Company  with
     cash to install its new equipment in connection with its recent move to its
     new  manufacturing  facility.  The term of the additional  revolving credit
     borrowings  was extended  through March 1, 1998. The Company is to maintain
     certain minimum net worth and debt service coverage levels. In addition,  a
     maximum  debt to net  worth  ratio  is  specified,  dividends  and  capital
     expenses are restricted,  and compensation and new options and warrants are
     also limited.

     On July 1, 1997, the Minnesota  Agricultural and Economic Development Board
     issued  $1,950,000 in Series 1997D tax-exempt  Bonds, the proceeds of which
     issue were loaned to the Company to finance new  equipment.  The underlying
     loan from the state is due in monthly installments which vary in accordance
     with the maturity  dates of the related  revenue  bonds,  plus  interest at
     rates varying from 4.5 to 6.0 percent.  The  effective  rate of interest to
     the Company is 5.79 percent per annum. At December 31, 1997,  $1,893,750 is
     outstanding. The Company is to maintain net worth and debt service coverage
     levels,  and a debt service reserve fund and a construction  fund. The debt
     service  reserve  fund will  remain  until all loan  obligations  have been
     satisfied.  The construction fund represents undisbursed loan proceeds that
     are available for approved  improvement and equipment  expenditures.  These
     amounts have been reflected on the consolidated balance sheet as restricted
     cash as follows:
<PAGE>

      

          Debt service reserve fund, U.S. government
             securities due within one year                     $   195,000
          Construction fund, money market funds                     242,211
                                                                    -------
                                                                $   437,211


NOTE 3.  INCOME TAX

     The  provisions  for  income tax are based  upon a minimum  state tax.  The
     availability of tax benefits from prior years offsets any regular taxes.


NOTE 4.  NET INCOME (LOSS) PER COMMON SHARE

     The Company has adopted  "Statement of Financial  Accounting  Standards No.
     128,  Earnings  per  Share"  (FAS  128)  which  became  effective  for this
     quarter's financial statements.  FAS 128 requires the presentation of basic
     earnings  per share (EPS) and diluted per share  amounts.  Basic EPS is the
     net  income  related  to  the  weighted-average  number  of  common  shares
     outstanding  for  the  period.  Diluted  EPS  reflects  potential  dilution
     assuming  the  issuance  of Common  Stock for stock  options  and  warrants
     exercisable  under the treasury  stock method.  Presentation  of EPS of the
     prior period accordingly has been restated for comparative purposes.

     Basic EPS for the current  three-month period is zero, and a computation of
     diluted EPS would be antidilutive. Diluted EPS of the prior period includes
     1,735,484 weighted-average shares assumed issued for options and warrants.



<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATIONS

Overview

     La Canasta of Minnesota,  Inc. ("La  Canasta"),  the  predecessor of Sparta
     Foods,  Inc.  (the  "Company"),  and now a  wholly-owned  subsidiary of the
     Company, began producing limited volumes of hand stretched tortillas,  corn
     tortillas and corn tortilla  chips shortly  following its  organization  in
     1981,  primarily for sale to  restaurants.  The Company was organized under
     the laws of the State of  Minnesota in 1988,  originally  under the name of
     "Sparta Corp." for the purposes of raising  capital for the acquisition of,
     or investment in, a business.  In January 1991, the Company acquired all of
     the outstanding capital stock of La Canasta. During the period 1991 through
     1993 the Company completed acquisitions which expanded its trademark retail
     brands to include Cruz, Chapala,  Mexitos and La Campana Paradiso, its food
     service  customers  to  include  McDonald's   restaurants  and  its  retail
     distribution  network to include  Bradley  Distributing,  Inc.  In 1995 the
     Company relocated its Lakeville, Minnesota production operations to its St.
     Paul manufacturing  facility.  The Company leased the Lakeville facility in
     1996 for a period  of 10 years.  Effective  September  1, 1997 the  Company
     signed  a  15-year  lease to  relocate  all  operations  to an  office  and
     manufacturing facility in New Brighton,  Minnesota. The current facility in
     St. Paul has been sublet for the remainder of its lease term.

Results of Operations

     The Company's net sales of $3,812,157  increased  $700,935  (22.5%) for the
     three months ended December 31, 1997, as compared to the three months ended
     December 31,  1996.  This  increase  resulted  primarily  from sales to new
     customers in the food service  industry and sales to the Company's  primary
     retail  distributors,  Crystal Farms Refrigerated  Distribution Company and
     Marigold Foods, Inc.

     Gross  profit,  as a  percentage  of net sales,  for the three months ended
     December 31, 1997,  was 27.5%  compared to 29.6% for the three months ended
     December 31, 1996. The lower percentage for the most recent period reflects
     additional  manufacturing  costs  associated with maintaining two operating
     locations  during  the  quarter.  The  relocation  of  all  operations  and
     installation of new equipment was substantially completed by the end of the
     quarter.

     Selling,  general and administrative  expenses increased $246,790 or 33% in
     the three months ended December 31, 1997, as compared to the same period in
     1996.  This increase is the result of the net sales increase for the period
     and reflects some additional  expense incurred in advertising and promoting
     the  Company's new line of Cruz  flavored  tortillas in the retail  market.
     Interest expense increased $9,215 for the three-month period ended December
     31, 1997 compared to the three months ended December 31, 1996 due primarily
     to higher  levels of bank  borrowings.  The Company was required to draw on
     its  lines of  credit  in order to  finance  the  costs of  installing  new
     manufacturing  equipment in its new manufacturing facility in New Brighton,
     Minnesota.

     Net loss for the three months ended December 31, 1997 was $9,820,  compared
     to net income of $111,136 for the same period in 1996.

<PAGE>
Liquidity and Capital Resources

     The Company financed its current  activities  primarily through  short-term
     borrowings and cash generated from its operations.

     Cash used in operating  activities  during the three months ended  December
     31, 1997 was $121,807 consisting  principally of the net loss of $9,820, an
     increase  in  accounts  receivable  of $67,700  and a decrease  in accounts
     payable and accrued expenses of $341,294.  This was offset by a decrease in
     inventories of $133,263 and depreciation and amortization of $160,273. Cash
     used in investing  activities  was  $214,289,  primarily  the result of the
     purchase  and   installation   of  new   equipment  in  the  Company's  new
     manufacturing  facility. Cash provided by financing activities was $336,096
     due mainly to a net increase in short-term  borrowings  under the Company's
     Line of Credit.

     At December  31, 1997,  the  Company's  bank Line of Credit and  additional
     revolving credit  borrowings of $800,000 were fully utilized,  and the Bank
     has extended temporary  overadvances.  The additional bank revolving credit
     borrowings  of  $800,000  were made  available  through  January 1, 1998 to
     provide the Company with cash to install its new  equipment  in  connection
     with its recent  move to its new  manufacturing  facility.  The term of the
     additional  revolving credit borrowings was extended through March 1, 1998.
     The  Company and the Bank are in  negotiations  to  increase  the  $800,000
     borrowings  and convert these  borrowings  into a five-year  term loan. The
     amount available under this Line of Credit  fluctuates daily based upon the
     Company's eligible accounts receivable and inventory.  All borrowings under
     the Bank's Credit Agreement are subject to various financial covenants, the
     violation of which could result in termination of the loan agreements which
     would  require the Company to repay the loans in full.  It is  management's
     opinion  that the Company  will be able to meet the  requirements  of these
     covenants in the future;  however,  there is no assurance  that the Company
     will not violate  the  financial  covenants  in the future or that the bank
     would waive any such violations.

     At December  31, 1997,  the Company had cash of $600 and  negative  working
     capital of $1,357,370.  The Company is currently seeking additional debt or
     equity financing to increase working capital and eliminate some of its high
     yield debt.  There is no assurance  that the Company will be able to obtain
     financing of any kind on acceptable terms.  Without  additional  financing,
     the Company's  ability to fund its working  capital  requirements in fiscal
     1998  will  depend  primarily  on its  success  in  meeting  its  projected
     financial goals in fiscal 1998.

     The Company  believes  that its bank credit  facilities  and cash flow from
     operations  will be sufficient to meet its operating  requirements  through
     fiscal 1998,  assuming the following:  (i) the Company's  fiscal 1998 sales
     exceed fiscal 1997 sales; (ii) there are no significant unplanned increases
     in expenses in fiscal 1998;  and (iii) the Company is able to keep its bank
     credit facilities operative.

Seasonality

     The  Company  has  historically  had  higher  sales in its third and fourth
     fiscal quarters which end June 30, and September 30, respectively,  than in
     its first and second quarters. Management believes that this is a result of
     seasonal  consumption patterns with respect to the Company's food products,
     such as consumption of higher volumes of tortilla chips, salsa and barbecue
     sauces,  during the summer months.  This  seasonality  may cause  quarterly
     results of operations to fluctuate.
<PAGE>

Raw Material Cost Fluctuations

     The Company does not enter into futures  contracts as defined by Statements
     of the Financial Accounting  Standards Board. It does, however,  enter into
     purchase  orders for delayed  delivery of raw materials,  generally 30 days
     for raw  materials  other  than flour and corn.  The  Company  enters  into
     purchase orders for delayed delivery of flour and corn for a period of 4-12
     months,  depending on current  pricing,  to ensure the  availability of the
     type of flour  and corn  best  suited  for the  Company's  products.  These
     purchase orders are placed directly with the suppliers.

Outlook

     The  Company's  plan in fiscal  1998 is to continue  to take  advantage  of
     strong  industry  growth  patterns.  The  Company  plans to utilize its new
     equipment, with improved production capacity, to increase sales and improve
     profitability  by focusing on new markets and product brand  positioning of
     tortillas  and  tortilla  chips in the  retail  and food  service  markets.
     Management believes that its major computer applications which are critical
     to the  Company's  operations  are either  Year 2000  compliant  or require
     nonmaterial resources to make them Year 2000 compliant.

     In  December,  1997,  the  Company  received  notice  from one of its sauce
     customers  that the  customer  will  discontinue  using the  Company as the
     customer's  manufacturer of barbecue sauce effective July 1, 1998. Sales of
     the customer's  barbecue sauce  represented  approximately 9%, 8% and 7% of
     the  Company's net sales for fiscal years ended  September 30, 1995,  1996,
     and 1997 respectively and 6% of net sales for the three-month  period ended
     December 31, 1997.  The Company  anticipated  that sales of the  customer's
     barbecue  sauce would have  represented  less that 5% of the  Company's net
     sales for the fiscal year ending  September 30, 1998. The Company  believes
     that the loss of this customer will not have a material  adverse  effect on
     the Company's net sales for the fiscal year ending  September 30, 1998, but
     net sales from the production of barbecue sauces, salsas and other products
     are  expected to decrease  substantially  unless the Company  replaces  the
     customer's production capacity with one or more new customers.  There is no
     assurance  that the Company will be  successful  in entering into new sauce
     manufacturing agreements with any new customers.

     The foregoing  statements contained in this Outlook section of Management's
     Discussion  and Analysis of Financial  Condition and Results of Operations,
     including  those relating to the Company's (i) ability to meet its covenant
     requirements  under its Credit  Agreement and (ii)  operating  requirements
     through  fiscal 1998 contained in  Management's  Discussion and Analysis of
     Financial   Condition  and  Results  of  Operations  are  forward   looking
     statements  that  involve  a  number  of  risks  and  uncertainties.   Some
     additional  factors  that could cause actual  results to differ  materially
     include but are not limited to  seasonality  of its sales and raw materials
     cost fluctuations, which are discussed above, and the following:

     Reliance  on  Principal  Customers.  During  1997,  sales to Crystal  Farms
     Refrigerated  Distribution Company ("Crystal Farms") and Catalina Specialty
     Foods,  Inc.  accounted for  approximately  23% and 12% respectively of the
     Company's  sales and  management  expects  Crystal  Farms to account  for a
     greater  percentage of the Company's sales in the future.  Crystal Farms is
     the Company's  largest single  distributor of its retail products and has a
     significant  impact on the Company's growth in the retail market.  Although
     the Company and Crystal Farms operate under a distribution  agreement,  the
     loss of Crystal  Farms as a customer  would  have a  material  and  adverse
     effect on the Company's sales and profitability and future growth.
<PAGE>


     Competition. The Mexican-style food manufacturing and distribution industry
     is highly  competitive.  The  Company  is in  competition  with a number of
     manufacturers  and  distributors of  Mexican-style  food products and, to a
     limited  extent,  manufacturers  of "snack foods," many of which are better
     capitalized  than the  Company.  The Company will also be subject to future
     competition from other manufacturers,  distributors and retailers who enter
     into  the  Mexican-style  food and  distribution  industry.  In the  retail
     market,  many of these  competitors  engage in extensive local and national
     advertising and marketing,  and the brand names for products distributed by
     those competitors are significantly  more recognizable to the consumer than
     the  Company's  brand names.  In addition,  competition  for shelf space in
     retail grocery stores is intense.  In the food service market,  the Company
     is  competing  with  a  number  of  regional  and  national   producers  of
     Mexican-style   food  products.   Many  of  these  competitors  are  better
     capitalized than the Company and have established sales  organizations.  No
     assurance  can be given  that the  Company  will be able to  compete  as it
     expands its markets.

     Sufficiency  of Working  Capital.  At December  31,  1997,  the Company had
     negative  working  capital of  $1,357,370.  At December 31, 1997,  the full
     amount had been drawn under the Company's Line of Credit,  and the Bank had
     extended  temporary  overadvances.  The amount  available  fluctuates daily
     based  upon the  Company's  eligible  accounts  receivable  and  inventory.
     Without  additional debt or equity capital,  the Company's  ability to fund
     its working  capital  requirements  in fiscal 1998 will be almost  entirely
     dependent on generating  sales which exceed the Company's fiscal 1997 sales
     and  keeping  its  bank  credit  facilities  operative.  In  addition,  any
     unforeseen  expense of a material  nature would  materially  and  adversely
     affect the Company's ability to fund ongoing operations.


<PAGE>

                           PART II. OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K


(a)  Exhibits

     10.41      Amendment to Consultant  Agreement dated December 30, 1997 
                between the Registrant and Catalina Specialty Foods, Inc.

     11         Computation of Earnings Per Common Share.

     27         Financial Data Schedule (filed only in electronic format).


(b)  Reports on Form 8-K

     A report on Form 8-K was not filed  during the quarter  ended  December 31,
1997.

<PAGE>

                                   SIGNATURES


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


                                     SPARTA FOODS, INC.
                                     (Registrant)

Dated:  February 10, 1998             By:/s/ Joel P. Bachul
                                        Joel P. Bachul,
                                        President and Chief Executive Officer


Dated:  February 10, 1998             By:/s/ A. Merrill Ayers
                                        A. Merrill Ayers
                                        Treasurer, Secretary and
                                        Chief Financial Officer