SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549

                                Form 10-Q

(Mark One)
[X]	Quarterly report pursuant to Section 13 or 15(d) of the Securities
      Exchange Act of 1934 for the Quarterly period ended January 31, 2001.

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


                       Commission File Number: 0-16787


                          YOCREAM INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)



               Oregon                                  91-0989395

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


        5858 N.E. 87th Avenue
          Portland, Oregon                                 97220

  (Address of Principal Executive                        (Zip Code)
              Office)



                                  (503) 256-3754
                 (Registrant's Telephone number, including area code)




Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (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 registrant's common stock, as of
the latest practicable date is:

                   Class:  Common stock outstanding at
                   March 16, 2001:   2,262,191  shares







                              YOCREAM INTERNATIONAL, INC.

                                      CONTENTS


                                                                Page
PART I	  FINANCIAL INFORMATION:

Item 1.  Financial Statements                                   3 - 7

            Balance Sheets as of January 31, 2001,              3
            (unaudited) and October 31, 2000

            Statements of Income for the                        4
            Three Months ended January 31, 2001
            and 2000 (all unaudited)

            Statements of Cash Flows for the                    5
            Three Months ended January 31, 2001
            and 2000 (all unaudited)

            Notes to Financial Statements                       6 - 7

Item 2.  Management's Discussion and Analysis of                8 - 11
         Financial Condition and Results of
         Operations


PART II OTHER INFORMATION

Item 1.  Legal Proceedings                                      11

Item 2.  Changes in Securities                                  11

Item 3.  Defaults upon Senior Securities                        11

Item 4.  Submission of Matters to a Vote of                     11
         Security Holders

Item 5.  Other Information                                      11

Item 6.  Exhibits and Reports on Form 8-K                       11



SIGNATURES                                                      12















PART 1.   FINANCIAL INFORMATION
Item 1.   Financial Statements

                            YOCREAM INTERNATIONAL, INC.
                                  BALANCE SHEETS


                                                January 31,       October 31,
                                                    2001             2000
      ASSETS                                                      (unaudited)

Current assets
   Cash and cash equivalents				$  157,303	       $  719,139
   Accounts receivable, net				   677,294	          997,076
   Inventories						 2,143,475	        2,497,413
   Other current assets					   233,053	          159,176

         Total current assets				 3,211,124		  4,372,804

Fixed assets, net						 3,914,618		  2,706,420
Deferred tax asset					    55,400		     54,000
Intangible and other long-term assets, net	   297,242		    293,351

								$7,478,384		 $7,426,575


LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
   Note payable to bank					$      -		 $      -
   Current portion of long-term debt		   104,123		    106,675
   Accounts payable					   839,549		    880,882
   Other accrued liabilities				   233,882		    183,453

         Total current liabilities			 1,177,554		  1,171,010

Long-term debt, less current portion		   101,781		    125,073

         Total liabilities				 1,279,335		  1,296,083

Shareholders' equity
   Common stock, no par value,
   30,000,000 shares authorized;
   2,262,191 shares issued and outstanding	 4,861,142		  4,862,541
   Retained earnings					 1,337,907	 	  1,267,951

         Total shareholders' equity			 6,199,049		  6,130,492

								$7,478,384		 $7,426,575









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


                            YOCREAM INTERNATIONAL, INC.
                               STATEMENTS OF INCOME
                                    (unaudited)

               For the three months ended January 31, 2001 and 2000




								    2001   	     2000

Sales  						 	 $2,774,158	  $2,838,025

Cost of sales						  1,874,361	   1,965,761

         Gross profit					    899,797	     872,264

Selling and marketing expenses			    369,921	     336,934

General and administrative expenses			    426,581	     411,425

         Income from operations 			    103,294	     123,905

Other income (expenses):
   Interest income					     10,264	       5,651
   Interest expense					        - 	      (7,342)
   Other, net						        -	       1,209

         Income before income taxes			    113,558	     123,423

Income tax provision					     43,600	      47,400

         Net income					 $   69,958	  $   76,023





Earnings per common share - basic			 $      .03	  $      .03

Earnings per common share - diluted			 $      .03	  $      .03

Shares used in basic earnings per share		  2,262,348	   2,298,391

Shares used in diluted earnings per share		  2,280,016	   2,336,411













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


                              YOCREAM INTERNATIONAL, INC.
                               STATEMENTS OF CASH FLOWS

              For the three months ended January 31, 2001 and 2000
                                    (Unaudited)


								      2001   	 2000


Cash flows from operating activities:
  Net income 						  $   69,958    $   76,023
  Adjustments to reconcile net
  income to net cash provided by
  (used in) operating activities:
     Depreciation						      86,604	  85,503
     Deferred income taxes				      (1,400)	  47,400
     Change in assets and liabilities
       Accounts receivable				     319,782	 339,008
       Inventories					     353,939	 229,010
       Other assets					     (77,767)	(104,372)
       Accounts payable					     (41,333)	(702,284)
       Other accrued liabilities			      50,428 	 (82,221)

         Net cash used in				     760,210 	(111,933)
           operating activities

Cash flows from investing activities:
  Expenditures for plant and equipment		  (1,294,803)	(128,620)

         Net cash used in investing activities	  (1,294,803)	(128,620)

Cash flows from financing activities:
  Principal payments on long term debt
    and capital leases					     (25,844)	 (30,338)
  Repurchase of common stock				      (1,399)	 (73,590)
        Net cash used in financing
          activities					     (27,243)	(103,928)

        Net decrease in cash and
          equivalents					    (561,836)	(344,481)

Cash and equivalents, beginning of period		     719,139	 737,408

Cash and equivalents, end of period			  $  157,303    $  392,927













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


                           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-Q 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
January 31, 2001 are not necessarily indicative of the results that may be
expected for the year ending October 31, 2001.  For further information,
refer to the financial statements, and footnotes thereto, included in the
Corporation's annual report on Form 10-K for the year ended October 31, 2000.



Note B - Inventories

							 January 31,       October 31,
 							    2001   	          2000
Inventories consist of
Finished goods					 $1,445,076		 $1,462,374
Raw materials					    471,066		    814,735
Packaging materials and supplies		    227,332		    220,304

							 $2,143,475		 $2,497,413



Note C - Note Payable to Bank

The Company has an uncollateralized bank line of credit which permits
borrowings of up to $2,000,000.  The line bears interest at the bank's
commercial lending rate.  The line is subject to renewal by July 1, 2001.
There were no borrowings outstanding at January 31, 2001, or October 31,
2000.

A secured term loan facility, which permits borrowings of up to $1,400,000,
is also available to finance the plant renovation project.  The facility
provides for payments over five years with interest at the prime rate, and
the option to fix the rate during the term.  The facility is subject to the
same debt covenants as the revolving line of credit and is collateralized by
plant project assets.  Should the Company borrow $500,000 under this
facility, the loan would be collateralized by a lien on all of the Company's
existing equipment and fixtures.  There were no borrowings outstanding at
January 31, 2001, or October 31, 2000.







NOTES TO FINANCIAL STATEMENTS - Continued





Note D - Capitalized Interest

During the three months ended January 31, 2001, $5,300 of interest was
capitalized relating to the plant upgrade project.


Note E - Earnings per share

Earnings per share are calculated as follows for the three months ended
January 31, 2001 and 2000:


                                   Three Months Ended January 31, 2001

                                 Net Earnings      Shares       Per-Share
                                 (Numerator)    (Denominator)     Amount

Basic earnings per share:

Net earnings	                       $69,958       2,262,348  $   .03

Effect of dilutive securities                             17,668       -

Diluted earnings per share               $69,958       2,280,016  $   .03




                                   Three Months Ended January 31, 2000

                                 Net Earnings      Shares       Per-Share
                                 (Numerator)    (Denominator)     Amount

Basic earnings per share:

Net earnings	                  $76,023       2,298,391       $   .03

Effect of dilutive securities          -             38,020            -

Diluted earnings per share          $76,023       2,336,411       $   .03















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 Company's management and on assumptions made by and information
currently available to management.  All statements other than statements of
historical fact, regarding the Company's 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 Company's 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 Company's 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 Company's
products; and the Company's ability to obtain raw materials and produce
finished products in a timely manner, as well as its ability to develop and
maintain its co-packing relationships and strategic alliances. In addition,
there are risks inherent in dependence on key customers, the loss of which
could materially adversely affect the Company's 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

Sales

YoCream's primary focus is on the manufacture, marketing and sales of
superior quality frozen yogurt, sorbet, smoothie and ice cream products in a
variety of premium, low-fat, and nonfat flavors in either non-organic or
organic formulations.  The Company also copacks similar products for other
companies. Due to the nature of these products, sales are subject to seasonal
fluctuations, with the winter months being the slowest season of the year.

The Company's sales for the first fiscal quarter ending January 31, 2001 were
$2,774,158, down 2.3% compared to the corresponding quarter in 2000.

The drop in sales primarily related to a decline in the sales of frozen
yogurt. This year the weather in certain significant sales territories, which
are normally warmer than other areas during winter, were colder than normal
and thus impacted sales.  Smoothie sales and copacking business continued to
show growth for the quarter.  Although the national trend for soft serve
frozen yogurt has been on the decline, the Company has been able to achieve
increases in its market share each year.  Management believes that this
trend will continue due to the quality of its products.  Contributing
factors to this success has been the outstanding in-house research and
development department that has developed many superior products over the
years, and the flexible manufacturing facilities.

In January 2001, the Company completed the plant upgrade project, which
increased plant capacity by over 150%.  It also is expected to facilitate
improved control of supplies and related costs, production efficiencies,
and additional manufacturing flexibility.  The project included the
addition of new pasteurization and homogenization equipment along
with new automated stainless steel processing lines and increased mixing
capacity, which allow the Company to simultaneously run four separate
packaging lines, including a new bag-in-the-box line.  High volume storage
silos and temperature controlled holding tanks were also installed to enable
storage of more products in various stages on production.  A new glycol
system allows for cooler temperatures off the production line, promoting
product shelf life and reducing freeze down time.  Also included in the
expansion is a more automated clean-in-place sanitation system.  An upgrade
to the electrical utilities incorporates energy saving features, which are
expected to reduce energy costs.

Along with the processing facility improvements, a manufacturing information
system was also installed which is expected to allow the Company to tightly
integrate production planning and scheduling, purchasing, inventory
management and shop floor control.  The additional information gained from
this system is expected to result in significant gains in productivity and
profitability.  With the completion of this major project, the Company
expects to offer the marketplace a more diverse selection of products and
packaging, and is positioned to attract more custom manufacturing and
copacking business.

To target new markets, the Company has recently developed several additional
products, including a soft serve frozen custard, a shake base, a soft serve
ice cream, a coffee smoothie adapted for high volume dispensers, and a
margarita base smoothie formulated for blenders.  The Company has also
developed a smoothie bar concept suited for convenience stores, in
cooperation with a major international company.  A premium line of hard
pack low fat frozen yogurt has been developed for a valued European customer
who plans to begin testing the product this spring.  Management expects to
see
the sales contribution from these products this year.

In addition to new products and markets, the Company is aggressively seeking
new business relationships based on the belief that alliances with other
reputable companies are strategic to the Company's continued growth.
Furthermore, the enhanced manufacturing capabilities resulting from the plant
upgrade project, provides the opportunity to expand the Company's copacking
business.  Accordingly, the Company plans to make this widely known to the
industry. The Company is also pursuing other more creative networking
possibilities that could have a significant impact on sales.

Gross Profit

The Company's gross profit margin improved from 30.7% of sales in the 2000
first quarter to 32.4% of sales in the current quarter.  The improvement of
1.7% is primarily due to the continuing process of improvements in supply
chain management and production efficiencies.

Selling and Marketing Expenses

Selling and marketing expenses in the first quarter increased from 11.9% to
13.3% of sales for the quarter. This is primarily due to staffing and payroll
related increases initiated late last year, and an increase in promotional
expenses which are part of the Company's commitment to support the
marketplace.

General and Administrative Expenses

General and administrative expenses increased, as a percentage of sales, from
14.5% to 15.4% of sales for the quarter. The increase as a percentage of
sales was primarily due to the leveling of sales.  The Company remains
committed to its practice of controlling expenses.

Income from Operations

Income from operations, as a percent of sales decreased to 3.7% in the
current quarter, compared with 4.4% in the comparable quarter last year. This
is primarily due to the slight decrease in sales and increase in selling,
general and administrative expenses.

Provision for Income Taxes

The net operating loss carryforwards, which the Company has utilized to
offset taxes that would otherwise be payable for the last several years, was
fully utilized as of the end of fiscal 2000.  Therefore, the tax provision in
fiscal 2001 will be payable within the next year.  The effective tax rate was
38.4% in both periods.

Net Income

Net income for the quarter decreased to $69,958 compared with $76,023 in the
comparable quarter last year.  Net income as a percentage of sales was 2.5%
of sales in the current quarter, compared with 2.7% for the same period last
year. These results are below the annual return of approximately 7% for the
last two fiscal years since the first quarter covers the winter months when
frozen desserts and snack sales are seasonally lower.  Earnings per share
remained at $.03 per share, primarily as a result of repurchases of common
stock over the last year which reduced shares outstanding.


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.

As of January 31, 2001, there were no borrowings under the Company's $2
million bank line of credit, or $1.4 million term loan facility.  Both
facilities remain in place and permit borrowings subject to the Company being
in compliance with certain ratios and negative covenants.  Interest would be
charged at the bank's basic commercial lending rate.

Accounts receivable at January 31, 2001 and October 31, 2000 were $677,294
and $997,076, respectively. This decrease of 32% is primarily attributable to
the seasonally lower sales of the first quarter.  The current level is
slightly lower than the January 31, 2000 total of $722,610.

Inventories at January 31, 2001 and October 31, 2000 were $2,143,475 and
$2,497,413 respectively.  This decrease of 14.2% is primarily due to planned
reductions in raw materials inventories.  The current dollar level is lower
than the January 31, 2000 total of $2,397,152 for the same reason.

At January 31, 2001 the Company had working capital of approximately
$2,034,000 compared with $3,202,000 at October 31, 2000, and $2,814,000 at
January 31, 2000.  The reduction is primarily due to decreases in cash,
receivables and inventories, and increases in accrued expenses.  Cash
balances have decreased over the last year primarily due to utilizing
internal funds to finance the plant upgrade project.  Accrued expenses have
increased primarily due to the accrual of income taxes described above.

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


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings

     The Company is not involved in any material pending legal proceedings,
     other than non-material legal proceedings occurring in the ordinary
     course of business.

Item 2.   Changes in Securities

      None.



Item 3.   Defaults Upon Senior Securities

      None.



Item 4.   Submission of Matters to Vote of Security Holders

      None.



Item 5.   Other Information

      None


Item 6.  Exhibits and Reports on Form 8-K

      A.   Exhibits -            none

      B.   Reports on Form 8-K - none






                              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:    March 19, 2001                     By:    /s/  John N. Hanna
                                            John N. Hanna, Chairman of the
                                            Board, and Chief Executive
                                            Officer


Date:     March 19, 2001                    By:   /s/ W. Douglas Caudell
                                       	  W. Douglas Caudell,
                                            Chief Financial Officer