UNITED STATES
                      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 April 30, 2005.

        [ ]   Transition report pursuant to Section 13 or 15(d) of the
                       Securities Exchange Act of 1934.

                       Commission File Number: 0-16787


                          YOCREAM INTERNATIONAL, INC.
                     (Exact name of small business issuer
                         as specified in its charter)

           Oregon                                          91-0989395
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                        Identification Number)

                            5858 N.E. 87th Avenue
                           Portland, Oregon  97220
                   (Address of principal executive office)

        (Issuers telephone number, including area code): (503)256-3754


Indicate by check mark whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding 12 months (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
                               ---         ---

The number of shares outstanding of the issuers common stock, as of the latest
practicable date is:

                     Class:  Common stock outstanding at
                      June 14, 2005:  2,110,400 shares

Transitional Small Business Disclosure Format:  YES      NO X
                                                   ---     ---











                         YOCREAM INTERNATIONAL, INC.

                                   CONTENTS

<table>
<caption>
                                                                    Page

PART I   FINANCIAL INFORMATION

                                                                 <c>
Item 1.  Financial Statements                                       3-10

            Balance Sheets as of April 30, 2005,                    3
            (unaudited) and October 31, 2004

            Statements of Income for the                            4
            Three Months ended April 30, 2005 and 2004,
            and Six Months ended April 30, 2005 and 2004
            (all unaudited)

            Statements of Cash Flows for the                        5
            Six Months ended April 30, 2005 and 2004
            (all unaudited)

            Notes to Financial Statements                           6-10

Item 2.  Management's Discussion and Analysis of                    10-15
         Financial Condition and Results of
         Operations

Item 3.  Controls and Procedures                                    15-16

<caption>
PART II  OTHER INFORMATION

                                                                 <c>
Item 1.  Legal Proceedings                                          16

Item 2.  Changes in Securities and Small Business Issuer            16
         Purchases of Equity Securities

Item 3.  Defaults upon Senior Securities                            17

Item 4.  Submission of Matters to a Vote of                         17
         Security Holders

Item 5.  Other Information                                          17

Item 6.  Exhibits                                                   17-18

SIGNATURES                                                          18
</table>










PART 1.   FINANCIAL INFORMATION
Item 1.   Financial Statements

                         YOCREAM INTERNATIONAL, INC.
                                BALANCE SHEETS
<table>
<caption>
                                                   April 30,     October 31,
                                                      2005          2004
                                                  (Unaudited)
                          ASSETS                  -----------   -----------

                                                <c>           <c>
Current assets
    Cash and cash equivalents                      $ 2,630,366   $ 3,806,993
    Accounts receivable, net                         1,066,992       910,010
    Inventories                                      2,265,725     1,866,051
    Other current assets                               554,283       219,634
    Income taxes receivable                             21,254        51,154
    Deferred tax asset                                 194,519       194,519
                                                   -----------   -----------
            Total current assets                     6,733,139     7,048,361

Fixed assets, net        	                       6,177,451     6,328,875
Intangible and other long-term assets, net             413,144       399,672
                                                   -----------   -----------
                                                   $13,323,734   $13,776,908
                                                   ===========   ===========
<caption>
            LIABILITIES AND SHAREHOLDERS' EQUITY

                                                <c>           <c>
Current liabilities
    Current portion of long-term debt              $   403,319   $   403,319
    Accounts payable                                 1,562,931     1,208,074
    Accrued liabilities                                197,903       170,218
                                                    ----------    ----------
            Total current liabilities                2,164,153     1,781,611

Long-term debt, less current portion                 2,105,784     2,305,939
Interest rate swap, at fair value                        4,000             -
Deferred tax liability                               1,084,120     1,070,720
Other liabilities                                       54,270        46,060
                                                   -----------   -----------
            Total liabilities                        5,412,327     5,204,330
                                                   -----------   -----------
Shareholders' equity
Preferred stock, no par value,
  5,000,000 authorized; none issued                          -             -
Common stock, no par value,
  30,000,000 shares authorized;
  2,110,400 and 2,282,500 shares issued
  and outstanding at April 30, 2005 and
  October 31, 2004, respectively                     3,998,757     4,739,581
Retained earnings                                    3,915,250     3,832,997
Accumulated other comprehensive loss                    (2,600)            -
                                                   -----------   -----------
            Total shareholders' equity               7,911,407     8,572,578
                                                   -----------   -----------
                                                   $13,323,734   $13,776,908
                                                   ===========   ===========
</table>
The accompanying notes are an integral part of the financial statements.

                         YOCREAM INTERNATIONAL, INC.
                             STATEMENTS OF INCOME
                                 (Unaudited)


<table>
<caption>
                               Three months ended          Six months ended
                                   April 30,                    April 30,
                          ------------------------     -----------------------
                             2005          2004           2005         2004
                          ----------    ----------     ----------   ----------

                       <c>           <c>            <c>          <c>
Sales                     $5,037,260    $4,855,752     $8,543,420   $8,305,736

Cost of sales              3,616,140     3,493,765      6,150,410    5,984,577
                          ----------    ----------     ----------   ----------

   Gross profit            1,421,120     1,361,987      2,393,010    2,321,159
Selling and marketing
     expenses                589,803       550,870      1,104,218      984,359
General and administrative
     expenses                558,641       521,973      1,098,326    1,039,405
                          ----------    ----------     ----------   ----------

   Income from operations    272,676       289,144        190,466      297,395

Other income (expenses)
     Interest income           6,217         1,451         10,945        3,206
     Interest expense        (39,059)      (21,097)       (70,711)     (44,670)
     Other, net               (2,247)         (712)        (2,247)        (712)
                          ----------    ----------     ----------   ----------

Income before taxes          237,587       268,786        128,453      255,219

Income tax provision          86,600       100,600         46,200       95,500
                          ----------    ----------     ----------   ----------
Net income                $  150,987    $  168,186     $   82,253   $  159,719
                          ==========    ==========     ==========   ==========

Earnings per common share:

  Basic                         $.07          $.07           $.04         $.07

  Diluted                       $.07          $.07           $.04         $.07
</table>












The accompanying notes are an integral part of the financial statements.

                         YOCREAM INTERNATIONAL, INC.
                           STATEMENTS OF CASH FLOWS

               For the six months ended April 30, 2005 and 2004
                                 (Unaudited)
<table>
<caption>
                                                    2005         2004
                                                 ----------   ----------

                                              <c>          <c>
Cash flows from operating activities:
  Net income                                     $   82,253   $  159,719
  Adjustments to reconcile net
  income to net cash used in
  operating activities:
     Depreciation and amortization                  314,291      297,475
     Loss on disposal of equipment                    2,247            -
     Deferred income taxes                           14,800       38,000
     Change in assets and liabilities
       Accounts receivable                         (156,982)    (290,587)
       Inventories                                 (399,674)    (417,132)
       Other assets                                (348,121)    (111,794)
       Accounts payable                             354,857       87,619
       Income taxes receivable                       29,900       55,784
       Other accrued liabilities                     35,895      (27,224)
                                                 ----------   ----------
          Net cash used in
             operating activities                   (70,534)    (208,140)
                                                 ----------   ----------
Cash flows from investing activities:
  Expenditures for fixed assets                    (165,114)    (660,211)
                                                 ----------   ----------
          Net cash used in investing
            activities                             (165,114)    (660,211)
                                                 ----------   ----------
Cash flows from financing activities:
  Proceeds from issuance of long-term debt                -      394,886
  Principal payments on long-term debt             (200,155)    (185,695)
  Repurchase of common stock                       (740,824)           -
                                                 ----------   ----------
          Net cash provided by (used in)
            financing activities                   (940,979)     209,191
                                                 ----------   ----------
          Net decrease in cash
            and cash equivalents                 (1,176,627)    (659,160)

Cash and cash equivalents, beginning of period    3,806,993    2,644,436
                                                 ----------   ----------
Cash and cash equivalents, end of period         $2,630,366   $1,985,276
                                                 ==========   ==========
</table>








The accompanying notes are an integral part of the financial statements

                          YOCREAM INTERNATIONAL, INC.
                         NOTES TO FINANCIAL STATEMENTS


Note A - Basis of Presentation

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments, which
consist of normal recurring accruals, considered necessary for a fair
presentation have been included. Operating results for the quarter ended April
30, 2005 are not necessarily indicative of the results that may be expected for
the year ending October 31, 2005.  For further information, refer to the
financial statements and related footnotes included in the Corporations annual
report on Form 10-K for the year ended October 31, 2004.

Note B - Reclassifications

Certain expenses have been reclassified to conform to the current years
presentation.

Note C - New Accounting Pronouncements

In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary
Assets. This standard amended APB Opinion No. 29, Accounting for
Nonmonetary Transactions, to eliminate the exception from fair value
measurement for nonmonetary exchanges of similar productive assets. This
standard replaces this exception with a general exception from fair value
measurement for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has no commercial substance if the future
cash flows of the entity are expected to change significantly as a result of
the exchange. This statement is effective for all nonmonetary asset exchanges
completed by the Company starting November 1, 2005. The Company does not
believe the adoption of this standard will have a material impact on its
financial position, results of operations or cash flows.

Note D - Inventories

<table>
<caption>
Inventories consist of the following:
                                              April 30,     October 31,
                                                2005           2004
                                             ----------     ----------

                                          <c>            <c>
Finished goods                               $1,635,370     $1,467,790
Raw materials                                   378,138        249,068
Packaging materials and supplies                252,217        149,193
                                             ----------     ----------
                                             $2,265,725     $1,866,051
                                             ==========     ==========
</table>

Note E - Current and Long-Term Debt

The Company has an uncollateralized bank line of credit, which permits
borrowings of up to $2,000,000.  The line, which bears interest at the banks
commercial lending rate of 5.25% at April 30, 2005 is subject to renewal by
July 2007.  There were no amounts drawn on this line at April 30, 2005.

In December 2003, the Company finalized the terms of a master lease facility in
the amount of $2,552,553.  The facility provides for payments over seven years
with interest at 30-day LIBOR plus 175 basis points (4.83% at April 30, 2005),
with the option to convert to a fixed rate by using an interest rate swap at
the Companys discretion (see Note F). The facility is subject to the same
financial covenants as the revolving line of credit, and is collateralized by
the aseptic system project assets, and by the other equipment and fixtures
related to the refinanced term loans.

The master finance lease facility contains certain financial covenants
including the ratio of senior liabilities (as defined) to adjusted tangible
capital, current ratio and operating cash flow to fixed charge as well as
limits on the amount of common stock which can be repurchased by the Company.
At April 30, 2005, the Company believes that it was in compliance with all of
these ratios and covenants.

Note F - Fair Value of Derivative Financial Instruments

In November 2004, the Company entered into an interest rate swap agreement,
which converted the variable interest rate paid on its debt to a fixed rate
of 5.88%.  This agreement will terminate on January 1, 2011.  It is the
Companys policy to enter into agreements when management deems them useful
in reducing risks to the Company.  To the extent that the fixed rate is
higher than the Libor rate as defined in the Master Lease Agreement, payment
is due from the Company for the difference.  To the extent that the fixed
rate is below the Libor rate, the Company is entitled to receive the
difference.  In accordance with SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, as amended, the Company has reviewed
and designated its interest rate swap agreement as a cash flow hedge and
recognizes the fair value of its interest rate swap agreement on the balance
sheet.  Changes in the fair value of this agreement are recorded in other
comprehensive income.  The hedge ineffectiveness, if any, is recorded in
earnings. There was no hedge ineffectiveness for the three months ended
April 30, 2005.

Note G - Comprehensive Income

Comprehensive income for the three-month periods ended April 30, are as
follows:
<table>
<caption>
                                                    2005         2004
                                                 --------     --------
   
                                           <c>          <c>
   Net income                                    $150,987     $168,186
   Change in fair value of derivative
         financial instruments, net of
          deferred income taxes of ($8,100)        13,600            -
                                                 --------     --------
   Comprehensive income                          $164,587     $168,186
                                                 ========     ========
</table>

Comprehensive income for the six-month periods ended April 30, are as follows:

<table>
<caption>
                                                    2005        2004
                                                 --------     --------
   
                                           <c>          <c>
   Net income                                    $ 82,253     $159,719
   Change in fair value of derivative
         financial instruments, net of
          deferred income taxes of $1,400          (2,600)           -
                                                 --------     --------
   Comprehensive income                          $ 79,653     $159,719
                                                 ========     ========
</table>

Note H - Common Stock Repurchase Plan

On November 8, 2004, the Companys Board of Directors authorized the repurchase
of up to $1,250,000 of the Companys common stock.  Under the terms of the
repurchase plan, the Company may make purchases through open market, or
privately negotiated transactions.  To assist the Company in executing the
stock repurchases, the Company entered into a 10b5-1 trading plan that was
administered and executed by a designated broker that purchased shares on
behalf of the Company beginning November 8, 2004 and ending on April 30, 2005.
Management intends to adopt a new 10b5-1 plan to affect continued purchases, as
authorized by the Board.

In the second quarter of 2005, the Company repurchased 38,400 shares at an
average price of $4.304 per share for a total cost of $165,269.  Cumulatively
for the year, total shares repurchased were 172,100 at an average price of
$4.305 for a total cost of $740,824.  These shares have been retired, as
required under Oregon corporate law.  There were no repurchases in the six
months ended April 30, 2004.

Note I - Earnings Per Share

Earnings per share is calculated as follows for the three months ended
April 30, 2005 and 2004:

<table>
<caption>
                                    Three Months Ended April 30, 2005
                                    ---------------------------------
                                 Net Earnings      Shares       Per-Share
                                 (Numerator)    (Denominator)     Amount
                                 ------------   -------------   ---------

                                <c>           <c>             <c>
Basic earnings per share
   Net earnings                    $150,987      2,134,810       $   .07

   Effect of dilutive securities       -             3,550             -
                                   --------      ---------       -------
Diluted earnings per share         $150,987      2,138,360       $   .07
                                   ========      =========       =======

<caption>
                                    Three Months Ended April 30, 2004
                                    ---------------------------------
                                 Net Earnings      Shares       Per-Share
                                 (Numerator)    (Denominator)     Amount
                                 ------------   -------------   ---------

                                <c>            <c>             <c>
Basic earnings per share
   Net earnings                    $168,186       2,277,956       $  .07

   Effect of dilutive securities       -             24,983            -
                                   --------       ---------       ------
Diluted earnings per share         $168,186       2,302,939       $  .07
                                   ========       =========       ======
</table>

Earnings per share is calculated as follows for the six months ended
April 30, 2005 and 2004:

<table>
<caption>
                                     Six Months Ended April 30, 2005
                                     -------------------------------
                                 Net Earnings       Shares       Per-Share
                                  (Numerator)    (Denominator)     Amount
                                 ------------   --------------   ---------

                                <c>           <c>             <c>
Basic earnings per share
   Net earnings                    $ 82,253      2,159,268       $   .04

   Effect of dilutive securities          -          3,550             -
                                   --------      ---------       -------
Diluted earnings per share         $ 82,253      2,162,818       $   .04
                                   ========      =========       =======

<caption>
                                    Six Months Ended April 30, 2004
                                    -------------------------------
                                Net Earnings       Shares       Per-Share
                                 (Numerator)    (Denominator)     Amount
                                ------------   --------------   ---------

                                <c>           <c>            <c>
Basic earnings per share
   Net earnings                    $159,719      2,277,956       $   .07

   Effect of dilutive securities          -         26,784             -
                                   --------      ---------       -------
Diluted earnings per share         $159,719      2,304,740       $   .07
                                   ========      =========       =======
</table>

Note J - Supplemental Cash Flow Information

Supplemental cash flow information for the six months ended April 30, is as
follows:
<table>
<caption>
                                                    2005        2004
                                                  --------    --------

                                               <c>         <c>
Cash paid during the period for income taxes      $  1,500    $  1,716
Cash paid during the period for interest          $ 69,313    $ 45,843
Fair value of interest rate swap, net of taxes    $ (2,600)
Payment of vendor payables used to acquire
     capital assets                                      -    $285,305
</table>

Note K - Stock Based Compensation Plans

The Company has stock-based employee compensation plans for which it has
adopted the disclosure only provisions of Financial Accounting Standard No.
123, Accounting for Stock-Based Compensation (SFAS 123).  It applies APB
Opinion No. 25, Accounting for Stock Issued to Employees, in accounting for
its Plans.

Had the Company used the fair value methodology of SFAS 123 for determining
compensation expense, the Companys net income and net income per share for the
quarter and six months ended April 30, would approximate the pro forma amounts
below:
<table>
<caption>
                              Three Months Ended          Six Months Ended
                                    April 30                   April 30
                             ---------------------     ---------------------
                               2005         2004         2005         2004
                             --------     --------     --------     --------

                          <c>          <c>          <c>          <c>
Net income, as reported      $150,987     $168,186     $ 82,253     $159,719
Deduct: stock based
   compensation expense
   determined under the
   fair value method,
   net of tax                       -        4,150       20,650       19,770
                             --------     --------     --------     --------
Net income proforma          $150,987     $164,036     $ 61,603     $139,949
                             ========     ========     ========     ========
Net income per share
as reported
   Basic                         $.07         $.07         $.04         $.07
   Diluted                       $.07         $.07         $.04         $.07

Net income per share,
pro forma
   Basic                         $.07         $.07         $.03         $.06
   Diluted                       $.07         $.07         $.03         $.06

Number of options which
became exercisable                  -        5,000       16,668       16,668

Weighted average
 assumptions:
   Risk-free interest rate          -        3.91%        3.07%         3.24%
   Expected dividend yield          -          0            0             0
   Expected lives                   -          5            5             5
   Expected volatility              -        41.6%        40.2%         42.4%
</table>

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

The following discussion includes forward-looking statements within the meaning
of the safe-harbor provisions of the Private Securities Litigation Reform Act
of 1995.  Such forward-looking statements are based on the beliefs of the
Companys management and on assumptions made by and information currently
available to management.  All statements other than statements of historical
fact, regarding the Companys financial position, business strategy and plans
and objectives of management for future operations of the Company are forward-
looking statements.  When used herein, the words anticipate, believe,
estimate, expect, and intend and words or phrases of similar meaning, as
they relate to the Company or management, are intended to identify forward-
looking statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. Forward-
looking statements are subject to certain risks and uncertainties, which could
cause actual results to differ materially from those, indicated by the forward-
looking statements.  These risks and uncertainties include the Companys ability
to maintain or expand its distribution abilities, including the risk of
disruptions in the transportation system and relationships with brokers and
distributors. Further, actual results may be affected by the Companys ability
to compete on price and other factors with other manufacturers and distributors
of frozen dessert products; customer acceptance of new products; general trends
in the food business as they relate to customer preferences for the Companys
products; and the Companys ability to obtain raw materials and produce finished
products in a timely manner, as well as its ability to develop and maintain its
copacking relationships and strategic alliances. In addition, there are risks
inherent in dependence on key customers, the loss of which could materially
adversely affect the Companys operations. The reader is advised that this list
of risks is not exhaustive and should not be construed as any prediction by the
Company as to which risks would cause actual results to differ materially from
those indicated by the forward-looking statements.

Results of Operations

The primary business of the Company is the manufacture, marketing and sales of
superior quality frozen yogurt, frozen custard, sorbet, cultured soy, smoothie,
coffee latte and ice cream products in a variety of premium, low-fat, nonfat
and low-carb flavors in either non-organic or organic formulations.  The
Company also copacks similar products for other companies.  Because of the
nature of these products, sales are subject to seasonal fluctuations, with the
summer months normally being the busiest season.  The introduction and roll out
of new products has tended to level the seasonal fluctuations.

Sales

The Companys sales increased 3.7% for the second quarter, and increased 2.9%
for the six months ended April 30, 2005, compared to the corresponding periods
in 2004.  The breakdown of sales by category for the six months ended April 30,
2005 and 2004 are as follows:
<table>
<caption>
                                                             Dollar
                                %                    %      Increase      %
Category            2005      Total      2004      Total   (Decrease)   Change
-----------      ----------   -----   ----------   -----   ----------   ------

              <c>          <c>     <c>          <c>     <c>           <c>
Yogurt           $5,534,000   64.8%   $4,771,000   57.4%   $ 763,000     16.0%

Smoothies         2,801,000   32.8%    3,022,000   36.4%    (221,000)   (7.3)%

Coffee Latte
Freeze                    -    0.0%      213,000    2.6%    (213,000) (100.0)%

Custard and
Ice Cream           208,000    2.4%      281,000    3.4%     (73,000)  (26.0)%

Copacking                 -    0.0%       19,000     .2%     (19,000) (100.0)%
                 ----------   -----   ----------   -----   ---------  --------
Total            $8,543,000    100%   $8,306,000    100%    $237,000      2.9%
                 ==========   =====   ==========   =====   =========  ========
</table>

Frozen Yogurt:  The 16.0% increase in frozen yogurt sales was primarily due
to continued growth in three sectors:  wholesale club, healthcare/institutions,
general foodservice.

The Company continues to develop and experience success in its core business of
frozen yogurt.  In 2005 concentrated sales activities continue to focus on the
healthcare and military/government segments as well as national broadline
distribution of the Companys core products.  The Company has expanded its
sales efforts in the healthcare, institution and university segments. This
activity has resulted in successful sales conversions of competitors products
to the Companys products. This business also facilitated expanded distribution
of the Companys products with broadline foodservice distributors.  Sales focus
on distribution has allowed the Company to secure 27 new national points of
distribution in the last two years and eight new points of distribution in the
first half of 2005. The Company continues to service wholesale club sales by
maintaining a high level of customer support.

In March 2005, the Company became a sponsor of the Major League Baseballs
Arizona Diamondbacks to facilitate specialty distribution in the Southwestern
U.S.  This sponsorship allows for the Company to sell its soft serve frozen
yogurt in Bank One Ballpark, for the next two years with an option for a third
year.

The newest addition to the Companys line of better-for-you desserts is Dannon
(register trademark)YoCream(register trademark) Frozen Yogurt pints.  This
product has been developed as a creamy indulgent frozen yogurt, which compares
to high-fat ice cream, yet only contains 5% butterfat.  With high counts of
live active cultures, this product provides the benefits of probiotics along
with outstanding flavors and inclusions that management believes will create
the taste experience that discriminating customers expect.  There are six
flavors that are in the early stages of market testing throughout the Fred
Meyer retail grocery chain in the Northwest.  Fred Meyer is part of the Kroger
family of stores.

Smoothies:  Sales decreased 7.3% in the first six months when compared to the
same period last year.  The growth in sales from new business has been offset
by the effect of the Companys lead customer electing in the first quarter to
use a competitors smoothie product for one of its nine distribution centers.
The Coffee latte freeze category was discontinued in 2004.

In addition to the normal growth in the remaining business for the smoothie
category, the Company expects additional sales as a result of the introduction
of the following new products:

  Dannon Frozen Frusion by YoCream(register trademark) is a unique frozen drink
  of yogurt and fruit.  This beverage is an example of a probiotic product
  designed to contain live micro organisms that improve health by modifying
  intestinal microflora.  This product was presented to the foodservice
  marketplace in the second quarter of 2005.

  Fruitquake(register trademark) dispenser smoothies are a line of bold and
  intense fruit beverages with high concentrations of real fruit.  This new
  ready-to-use line designed for bulk dispensers has been selectively
  introduced in the first quarter of 2005 and is expected to be offered
  nationwide this spring. This product is packaged on the Companys aseptic
  packing line for a shelf stable product.

  YoCaffe Latte(register trademark) is an aseptically packaged coffee
  concentrate product, which is designed to be mixed with milk and served
  through a frozen beverage machine.  This product has been developed in
  response to foodservice operators demand for convenient coffee beverages.
  In the second quarter of 2005, the Company introduced a new ready-to-use
  version of YoCaffe Latte(register trademark)that is pre-mixed with milk.
  This is also an aseptically packaged product designed to be stored at room
  temperature.

Custard, Ice Cream and Soy:  Sales in this category decreased when compared to
the same period in the prior year primarily due to a restaurant chain that had
been purchasing the Companys soft serve frozen custard changing to the
Companys reduced fat ice cream product in the second quarter of 2004, and then
subsequently electing not to renew the contract in favor of local supply
effective in December 2004.

Copacking:  The Company promotes its copacking capabilities, and the
flexibility of its manufacturing facility through industry affiliations such as
Northwest Food Processors Association and the All Star Dairy Buying Group, as
well as through the direct sales activities of business development managers
and senior sales staff.

The decrease in copacking revenue is the result of a large copacking customer
acquiring its own production facility in the second quarter of 2004.  In the
first half of 2005, the Company processed new proprietary products for test
marketing by significant customers that could result in high volume copacking
business in the near future.

Gross Profit

The Companys gross profit margin increased from 28.0% to 28.2% for the second
quarter and from 27.9% to 28.0% for the six months in 2005.

The increase in gross margin was primarily due to price increases, the loss
of sales of the low margin Coffee Latte smoothie, and from the benefits
realized from the Companys cost reduction measures in the areas of
ingredients, packaging, and logistics. The increase in the gross margin was
achieved even though fuel costs escalated during the period.

Selling and Marketing Expenses

Selling and marketing expenses increased, as a percentage of sales, from
11.3% to 11.7% for the second quarter, and increased from 11.9% to 12.9% for
the six months in 2005.  The increases in selling and marketing expenses are
due to an increase in commissions on higher sales and due to the sales
department reorganization in late 2004.  The reorganization resulted in the
addition of senior level sales and marketing personnel to support projected
growth.  This reorganization has resulted in increased personnel and travel
related expenses.  Management believes that the reorganization has been a
significant factor contributing to the 16% increase in yogurt sales achieved
in 2005, and that continued opportunities merit the expected increase in
expenses related to the intensified sales and marketing activities.

General and Administrative Expenses

General and administrative expenses increased, as a percentage of sales, from
10.7% to 11.1% of sales for the quarter, and increased from 12.5% to 12.9% for
the six months in 2005.  General and administrative expenses have increased in
total due to higher personnel related expenses.

Income from Operations

As a percentage of sales, income from operations in the second quarter of
2005 was 5.4% of sales, compared to 6.0% for the quarter last year.  For the
six months, income from operations in 2005 was 2.2% of sales compared to
3.6% for the same period in 2004.  The decrease in income from operations
was primarily due to the combined increase in selling, general and
administrative expenses described above.

Interest Expense

Interest expense increased in the second quarter and six months of 2005
compared to 2004 as a result of the increase in interest rates, as described in
Notes E and F to the Financial Statements.

Provision for Income Taxes

The effective tax rate was 36.4% and 36.0% for the second quarter and year-to-
date periods of 2005.  The effective tax rate was 37.4% for the second quarter
and year-to-date periods of 2004.

Net Income

Earnings in the second quarter of 2005 showed a significant improvement over
the first quarter of the year due to the increase in sales and improved
margins.  Net income for the six months in 2005 is still below the prior year
for the reasons described above, but management expects overall results for
fiscal 2005 to exceed the prior year.

Historically, net income as a percentage of sales has been higher in the second
half of the fiscal year because the summer months are the prime selling season
for the Companys frozen deserts and beverage products.

Liquidity and Capital Resources.

In recent years, the Company has financed its operations and expansion from
bank loans, operating leases, capital leases, stock sales, and internally
generated funds.

In December 2003 the Company arranged a master finance lease facility to fund
its new aseptic processing system, resulting in a long-term obligation totaling
approximately $2,953,000.  This financing arrangement provides for payments
over seven years with interest at 30-day LIBOR plus 175 basis points (4.83% at
April 30, 2005), with the option to convert to a fixed rate by using an
interest rate swap at the Companys discretion.

In November 2004, the Company entered into an interest rate swap agreement to
take advantage of the current low interest rate environment.  This swap
agreement is designated as a fair-value hedge of the Companys floating rate
debt, effectively converting this debt to a fixed rate of 5.88%.  It is the
Companys policy to enter in to interest rate swap agreements when management
deems them useful in reducing risks.  The Company is accounting for this
interest rate swap as a cash flow hedge, which it has determined to be highly
effective.  The fair value of the interest rate swap is recorded on the balance
sheet and changes in fair value of this instrument are  shown, net of tax, in
accumulated other comprehensive income.

The Company has an unutilized bank line of credit of $2 million, which matures
in July 2007, and provides for an interest rate at prime, with the option to
lock in sub-prime rates on blocks of funds up to 90 days.  The bank has also
offered an additional $500,000 term loan line for equipment purchases, which
has not been utilized.

Cash used in operations was approximately $71,000 in the first six months of
2005, compared with cash used in operations of approximately $208,000 in the
same period in 2004.  Management expects that the Company through the normal
course of operations will generate a positive annual cash flow for the fiscal
year.

Expenditures for plant and equipment of approximately $165,000 in the first
six months of 2005 were less than the $660,000 spent in the same period last
year.  A majority of the plant and equipment expenditures in 2004 related to
the finalization of the aseptic packaging system, which was placed in service
in October 2003.

At April 30, 2005, working capital was approximately $4,569,000, including
$2,630,000 of cash and cash equivalents.  Working capital decreased
approximately $698,000 at April 30, 2005 compared to October 31, 2004,
primarily as a result of the cash used in the stock repurchase program, but
the current ratio of 3.11 to 1 remains strong.

The Company follows the practice of repurchasing its common stock from time to
time, pursuant to board-approved plans.  The Company also purchases stock for
its required contributions to the Companys 401(k) Employee Savings Plan and
Trust.

On November 8, 2004, the Companys Board of Directors authorized the repurchase
of up to $1,250,000 of the Companys common stock.  Under terms of the
repurchase plan, the Company may purchase its shares in the open market or in
privately negotiated transactions.  In the second quarter of 2005, the Company
repurchased 38,400 shares at an average price of $4.304 per share for a total
cost of $165,269.  Cumulatively for the year, total shares repurchased were
172,100 at an average price of $4.305 for a total cost of $740,824.  See Note H
in the notes to financial statements for further details.  There were no
repurchases in the six months ended April 30, 2004.

The Company believes its existing assets, bank lines, and revenues from
operations will be sufficient to fund the Companys operations for at least the
next twelve months.

New Accounting Pronouncements

In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary
Assets. This standard amended APB Opinion No. 29, Accounting for
Nonmonetary Transactions, to eliminate the exception from fair value
measurement for nonmonetary exchanges of similar productive assets. This
standard replaces this exception with a general exception from fair value
measurement for exchanges of nonmonetary assets that do not have commercial
substance. A nonmonetary exchange has no commercial substance if the future
cash flows of the entity are expected to change significantly as a result of
the exchange. This statement is effective for all nonmonetary asset exchanges
completed by the Company starting November 1, 2005. The Company does not
believe the adoption of this standard will have a material impact on its
financial position, results of operations or cash flows.

Critical Accounting Policies and Estimates

The critical accounting policies and the use of estimates as reported in the
Companys Form 10-KSB for the year ended October 31, 2004 are reaffirmed.

Item 3. Controls and Procedures

     (a)  Disclosure Controls and Procedures

Under the supervision and with the participation of its Chief Executive Officer
and Chief Financial Officer, management has evaluated the effectiveness of the
Companys disclosure controls and procedures as of the end of the period
covered by this report pursuant to Rule 13a-15(b) under the Securities Exchange
Act of 1934 (the Exchange Act). Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that, as of the end of the
period covered by this report, the Companys disclosure controls and procedures
are effective in ensuring that information required to be disclosed in the
Companys Exchange Act reports is (1) recorded, processed, summarized and
reported in a timely manner, and (2) accumulated and communicated to the
Companys management, including its Chief Executive Officer and Chief Financial
Officer, as appropriate to allow timely decisions regarding required
disclosure.

     (b)  Internal Control Over Financial Reporting

There has been no change in the Companys internal control over financial
reporting that occurred during the last fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the Companys internal
control over financial reporting.

                         PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

     The Company is not involved in any material pending legal proceedings.

Item 2.   Changes in Securities and Small Business Issuer
          Repurchases of Equity Securities
<table>
<caption>
                                                (c) Total
                                                Number of      (d) Dollar
                                                  Shares        Value of
                                               Purchased as    Shares that
                                                  Part of        May be
                 (a) Total                        Publicly      Purchased
                 Number of         (b)           Announced      Under the
                  Shares       Average Price     Plans or        Plans or
       Period    Purchased     Paid Per Share    Programs        Programs
     ---------   ---------     --------------  ------------    -----------
     
           <c>            <c>               <c>          <c>
     11/8/04 -
       11/30/04    78,200         $4.302            78,200       $913,576
     12/1/04 -
       12/31/04    50,000          4.293            50,000        698,926
     1/1/05 -
       1/31/05      5,500          4.451             5,500        674,445
     2/1/05 -
       2/28/05      6,400          4.344             6,400        646,645
     3/1/05 -
       3/31/05     15,000          4.352            15,000        581,371
     4/1/05 -
       4/30/05     17,000          4.247            17,000        509,121
                  -------         ------           -------        -------
     Total        172,100         $4.305           172,100
                  =======         ======           =======
</table>

      On November 8, 2004, the Companys Board of Directors authorized the
      repurchase of up to $1,250,000 of the Companys common stock.  Under the
      terms of plan, the Company could make purchases over time through open
      market transactions, block purchases, or through privately negotiated
      transactions.

Item 3.   Defaults Upon Senior Securities

      None.

Item 4.   Submission of Matters to Vote of Security Holders

      The annual meeting of shareholders was held on April 20, 2005, at which
      time the following actions were taken:

  1.  The two nominees for election as directors were elected.  The voting
      results were as follows:
<table>
<caption>
                                             Shares      Shares
                                            Voted For   Abstained
                                            ---------   ---------
       
                                   <c>          <c>
       William Rush                          2,018,673    84,162
       Carl Behnke                           2,023,728    79,107
</table>

      William Rush and Carl Behnke were elected as Class I directors to
      serve for a term of three years, or until their successor shall have
      been elected and qualified.  James S. Hanna, John N. Hanna, Frederick
      M. Kinyon and Joseph J Hanna each will continue their respective
      terms as directors after the meeting.

  2.  The amendment and restatement to the Companys stock incentive plan.
      The voting results were as follows:
<table>
<caption>
                                Shares                      Shares
                Shares          Voted         Shares         Not
              Voted For        Against      Abstained       Voted
              ---------        -------      ---------      -------
               
             <c>            <c>          <c>
               975,524         277,648        6,115        843,548
</table>

      The amendment and restatement of the Companys stock incentive plan
      was approved.  The 2000 Stock Option Plan is renamed the 2005 stock
      incentive plan; and was amended so stock settled SARs, performance
      share awards and restricted share awards are added to the types of
      equity awards that may be granted; and the total number of shares
      authorized for grants under the stock incentive plan was increased
      from 400,000 to 650,000.

Item 5.   Other Information

          All items required to be reported on Form 8-K were timely filed.

Item 6.  Exhibits

          10.3   2005 Stock Incentive Plan, which restates and amends in its
                 entirety the 2000 Stock Option Plan, (incorporated by
                 reference from Schedule DEF 14A filed February 28, 2005, SEC
                 File No. 0016787)

          31.1   Certification of John N. Hanna pursuant to Section 302 of the
                 Sarbanes-Oxley Act of 2002

          31.2   Certification of W. Douglas Caudell pursuant to Section 302
                 of the Sarbanes-Oxley Act of 2002

          32.1   Certification of John N. Hanna pursuant to 18 U.S.C. Section
                 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley
                 Act of 2002

          32.2   Certification of W. Douglas Caudell pursuant to 18 U.S.C.
                 Section 1350 as adopted pursuant to Section 906 of the
                 Sarbanes-Oxley Act of 2002


                                  SIGNATURES


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

  Registrant:

                                            YOCREAM INTERNATIONAL, INC.

Date:     June 14, 2005                     By:    /s/  John N. Hanna
                                            -------------------------
                                            John N. Hanna, Chairman of the
                                            Board, and Chief Executive
                                            Officer

Date:     June 14, 2005                     By:   /s/ W. Douglas Caudell
                                            ----------------------------
                                            W. Douglas Caudell
                                            Chief Financial Officer