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


                                    FORM 10-K


                Annual Report Pursuant to Section 13 or 15(d) of
                         Securities Exchange Act of 1934


For the fiscal year ended                                 Commission File Number
December 31, 1999                                                  2-44764

                               BALTEK CORPORATION
             (Exact name of registrant as specified in its charter)



             Delaware                              13-2646117
(State or other jurisdiction of                (I.R.S. Employer
 incorporation or  organization)               Identification No.)



                10 Fairway Court
                  P.O. Box 195                                  07647
             Northvale, New Jersey                           (Zip Code)
    (Address of principal executive offices)

                  Registrant's telephone number: (201) 767-1400

           Securities Registered pursuant to Section 12(b) of the Act:
                                      None

           Securities registered pursuant to Section 12(g) of the Act:
                          Common Stock, $1.00 Par Value
                          -----------------------------
                                (Title of Class)


       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        [  ]

       Indicate by check mark if  disclosure of  delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of the  registrant's  knowledge,  in definitive proxy or information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [ ]
<PAGE>

       The aggregate  market value of the voting stock held by  nonaffiliates on
March 2, 2000 amounted to $7,355,000

       Indicate the number of shares outstanding of each of the issuer's classes
of common  stock as of the latest  practicable  date,  March 2, 2000:  2,523,261
shares, Common Stock, $1.00 par value.

       Documents  incorporated by reference:  Portions of the registrant's proxy
statement  dated  April  27,  2000 for use in  connection  with its 1999  annual
meeting of stockholders  are incorporated by reference in Part II of this Annual
Report on Form 10-K to the extent set forth in items 10, 11, and 12 hereof.


<PAGE>
                                     PART I

Item 1.           BUSINESS

Principal Products

         The registrant and its subsidiaries  (hereinafter collectively referred
to as the "Company") is a multinational manufacturing and marketing company. The
Company  operates  in two  lines  of  business:  1)  supplying  core  materials,
primarily balsa wood and balsa wood products,  linear and  cross-linked PVC foam
products,  and non-woven polyester mat, and 2) seafood,  including  aquaculture,
the farming  and  processing  of shrimp,  and as an  importer.  The foam and mat
products,  together with the Company's balsa products, position the Company as a
complete  supplier to the composite  structural core market.  The core materials
are  typically  used by the  Company's  customers  to  manufacture  a variety of
products by  laminating  metal or  fiberglass  reinforced  plastic skins to both
sides of the core material,  thereby creating a sandwich structure. The products
manufactured by the Company's customers include fiberglass boats, aircraft cargo
pallets,  aircraft  flooring,   fiberglass  storage  and  processing  tanks  and
fiberglass  tub and shower  bottoms.  Balsa  lumber is used  mostly by the hobby
industry to manufacture model airplanes.

      The Company  mills and sells graded and finished  balsa lumber in standard
sizes and balsa wood strips and  blocks.  "Standard  sizes" of balsa  lumber are
measured in boardfeet  (12" x 12" x 1") for the English  system of measure or in
cubic meters for the metric system of measure.  Shipments to Europe  (except the
U.K.) and Japan are made in cubic  meters  while  shipments  to the U.S. and the
U.K. are in boardfeet.  The Company,  for production and  statistical  purposes,
converts all metric measurements into boardfeet,  thus the Company's  "standard"
is boardfeet. The Company also manufactures and sells custom-made bonded panels,
bonded  blocks of balsa  wood,  and a  flexible  balsa  wood  block  mat  called
"Contourkore."  Glued-up  balsa  blocks are  marketed in two ways.  Part is sold
directly  to  customers  in block or panel  form,  the balance is shipped to the
Company's factory in Northvale,  NJ for further  processing into Contourkore and
other products.

         The  Company's  mat products  are  imported  from Holland and Japan and
resold without further  manufacturing.  These products are marketed as "Coremat"
and "BaltekMat," principally to the pleasure boat industry.

         The  Company  is  the  sole  North  American  source  and  nonexclusive
distributor in Central and South America of Airex(R) (a registered  trademark of
Alusuisse Airex AG) and Airlite(TM),  structural PVC foam products.  The foam is
purchased from Airex for further processing in the U.S. and is sold to customers
as rigid or flexible panels in various thicknesses.

         The Company is also in the seafood business,  including aquaculture and
as an  importer.  The  aquaculture  business,  specifically  shrimp  farming  in
Ecuador,  South America,  consists of a hatchery, two farms and a packing plant.
Shrimp  larvae are  supplied by the  hatchery to the farms,  and after  harvest,
transferred  to the  packing  plant for  processing  and  shipment.  The Company
supplies  frozen blocks that are purchased in wholesale  quantities by importers
and/or large processors. Typically these companies buy container loads of shrimp
and then either  distribute them to other users or process and redistribute them
as cooked,  breaded or  repacked  products.  They are sold under their own brand
names and to a very large  network of smaller  specialized  users and  retailers
(supermarkets, restaurants, etc.). The Company also operates as a seafood

<PAGE>

importer,  purchasing  various types of seafood products such as shrimp,  salmon
and lobster from independent  producers located  throughout the world and shrimp
from the Company's own farms.  The products are then sold to customers,  such as
seafood  distributors,  primarily in the United States.  The Company maintains a
variety of  products  in  inventory  for the  convenience  of its  customers  in
addition to arranging  simultaneous  shipments  (purchases)  from  producers and
sales to customers,  commonly  called  "back-to-back"  transactions.  The import
business is located in Northvale, New Jersey.

         All of the  Company's  balsa and shrimp are  produced in  Ecuador.  The
dependence  on foreign  countries  for raw  materials  represents  some inherent
risks.  However,  the  Company,  or  its  predecessors,   has  operated  without
interruption in Ecuador since 1940. Operating in Ecuador has enabled the Company
to produce raw  materials at a reasonable  cost in an  atmosphere  that has been
favorable to exporters such as the Company. To mitigate the risk of operating in
Ecuador,  in 1999 the  Company  obtained  a  five-year  expropriation  insurance
policy.  This policy  provides  the Company  coverage  for its assets in Ecuador
against  expropriatory  conduct (as defined in the policy) by the  government of
Ecuador.  The amount of the  recoverable  loss is  governed  by the terms of the
policy. Recent economic and political developments in Ecuador caused significant
volatility in the value of the sucre in 1999,  which  continues  into 2000.  The
value of the sucre was  approximately  8,000 sucre to the U.S. dollar at January
1, 1999,  and  decreased to 25,000  sucre per dollar early in 2000.  In 2000 the
Ecuadorian  government  has  announced  plans to adopt  the U.S.  dollar  as its
national  currency,  a plan  commonly  being called  "Dollarization".  This plan
requires  government  approval  in Ecuador  and the U.S.  in  addition  to major
operational  changes in the Ecuadorian  economy. It is not clear at this time if
the plan will be implemented or precisely how certain  aspects of  Dollarization
will be  introduced.  With the  exception of Panama,  no other  country in Latin
America  has  adopted  the U.S.  dollar  as its  national  currency.  Due to the
significant  uncertainty  surrounding the plan, the effects of  Dollarization on
the Company, if implemented, cannot be determined at this time.


Principal Markets and Methods of Distribution

         The Company's  balsa  products are sold  throughout  the United States,
Canada,  Europe,  Japan,  Australia  and Latin  America to  approximately  1,600
ultimate  users.  The foam and mat products are sold primarily in North America.
The  Company's  salesmen are used  extensively  in the sale of its core material
products.  The Company  makes  approximately  30% of its domestic  core material
product sales directly.  The remainder of the sales is handled through  regional
distributors in the United States,  Europe, Canada and the Pacific Rim. Sales of
Contourkore to customers outside the United States are handled through a wholly-
owned Foreign Sales Corporation.

         The Company's  shrimp is sold in the United States,  Europe and Canada.
In 1999,  approximately  79% of the shrimp  production  was sold to the European
market; the balance was sold to the U.S. and Canadian markets.

Competitive Conditions

         As part of their overall  business,  other  companies,  with  aggregate
facilities  and  financial  resources  substantially  greater  than those of the
Company,  manufacture and sell various natural and synthetic products for nearly
all the purposes for which balsa, foam and mat products are sold by the Company.
Some of these  competitive  products are produced and sold at a lower price than
the Company's products,  and sales of these competing products are substantially
greater than the Company's sales of core materials.
<PAGE>

      In North  America and Europe,  the Company  also  directly  competes  with
companies,  some with greater  resources than the Company,  that manufacture and
sell balsa and foam  products at prices which may be lower than those offered by
the Company.

         The Company's  shrimp business  competes  against many larger companies
that produce shrimp through similar methods in addition to fishing for shrimp in
the traditional method of trawling.

         The  importing   business   competes  against  other  companies,   some
substantially  larger  than the  Company,  which also import  seafood  products.
Additionally,  certain  of these  companies  also act as their  own  processors,
wholesalers or  distributors,  thus providing more services to the customer than
the Company.

Material Customer

         No customer  accounted  for more than 10% of revenues in 1999,  1998 or
1997.

Backlog

         As of December  31, 1999 and 1998,  the Company had a backlog of orders
believed to be firm in the amounts of $9,607,000 and $12,488,000,  respectively.
The 1999 backlog is reasonably  expected to be filled within the current  fiscal
year.

Sources and Availability of Raw Materials

         The Company  acquires,  partly from its own plantations and partly from
others,  substantially  all of its balsa wood from western and coastal  Ecuador,
accessible by roads so that the balsa lumber can be  transported by truck to its
sawmills. The Company presently considers the timber standing in this area to be
ample to supply all the Company's  requirements in the foreseeable  future.  The
Company may, however, make periodic purchases of land to supplement its existing
plantations  and provide for future  growth.  The Company  also  receives  small
quantities  of balsa  from other  Latin  American  countries.  The  Company  has
experienced  no  difficulties  in  purchasing  its  foam and mat  materials  and
anticipates that the manufacturers  will be able to produce adequate  quantities
to meet demand. The resins, fiberglass and other materials used in the Company's
manufacturing processes are available from numerous commercial sources. To date,
the Company has experienced no difficulty in obtaining such materials needed for
its operations.

         The Company owns and operates two shrimp farms and a shrimp hatchery in
Ecuador  for the  production  of a steady and  plentiful  supply of shrimp.  The
hatchery supplies  substantially all the larvae required by the Company's ponds.
The  Company  also owns a shrimp  packing  plant in Ecuador,  thereby  achieving
complete vertical integration of the shrimp business.  The import operations are
able to  purchase  its  products  from a  variety  of  producers  and,  with the
exception of shrimp, are expected to have an adequate supply of seafood.

Patents, Trademarks and Licenses

         The Company  features  its  registered  trademark  "Belcobalsa(R)"  for
lumber,  dimension  stock,  and  bonded  panels  and  blocks,  "Contourkore(R)",
"LamPrep(R)" and "AL-600/10(R)" for the flexible wood block mat,  "Durakore(R)",
a balsa hardwood  composite,  "D100(R)" for end-grain panels and "Decolite(R)" a
balsa  composite  panel  used as an  alternative  to  plywood,  and  low-density
laminate bulkers, marketed as "BaltekMat(R)".

         The Company  also  features  "Airlite(TM)",  a  cross-linked  PVC foam,
"AIREX(R)"(registered trademark of Alusuisse Airex AG), a linear foam and "Firet
Coremat(R)", also a low-density laminate bulker.

<PAGE>
Estimated Research Costs

         The  Company  has  incurred  approximately  $597,000  during  1999  for
research  and  development,  compared  to  expenditures  of $609,000 in 1998 and
$331,000 in 1997. All  expenditures  are related to the core materials  segment.
The Company  continues to actively explore possible new applications of its core
materials and new processes to improve the manufacturing of those products.

Environmental Impact

         The  Company  has  experienced  no  material  impact  upon its  capital
expenditures,  earnings or  competitive  position as a result of its  compliance
with  federal,  state or local  provisions  relating  to the  protection  of the
environment.  Balsa  is not a  rainforest  species,  nor  does  it  grow  in the
rainforest.  It is usually  harvested  within five  years.  The fast growth rate
makes balsa similar to short-cycle  agricultural crops and an ideal tree species
for forest plantations.

Employees

         The Company has 1,174  employees in Ecuador,  173 in the United  States
and 10 in Europe, aggregating 1,357 employees.

Seasonality

         The Company's business is not seasonal.


<PAGE>

Classes of Products

         The following  table sets forth the amount and  percentage of net sales
represented by each of the Company's  product classes in each of the three years
in the period ended December 31, 1999 (dollars in thousands):


                 Year         Core Materials       Seafood           Total

                 1999             $58,938          $27,089          $86,027
                                       69%              31%             100%
                 1998             $53,600          $14,095          $67,695
                                       79%              21%             100%
                 1997             $44,004          $12,136          $56,140
                                       78%              22%             100%

Segment Information

         The Company is engaged in two lines of business,  that of manufacturing
and  supplying  products  which  are used  principally  as the  structural  core
material in composite  applications  in various  industries,  and in the seafood
business, as a shrimp producer in Ecuador and as an importer.

         Reference is made to the  information set forth in Note 11 to the Notes
to Consolidated  Financial  Statements,  Part II, Item 8 hereof, with respect to
assets and operating results for different business segments.

Foreign Operations

         The Company,  through its  Ecuadorian  subsidiaries,  owns and operates
five  woodworking  plants  and  approximately  14,510  acres of  forest  land in
Ecuador.  In  addition,  the  Company  owns and  operates  two  shrimp  farms on
approximately 2,500 acres, a shrimp hatchery and a shrimp packing plant.

         At the  Company's  woodworking  plants,  rough balsa lumber is received
from plantations or independent  loggers and then processed into finished lumber
and other manufactured products.

         The  Company's  shrimp ponds are stocked with  larvae.  After  feeding,
controlling  the pond  environment and monitoring the growth of the shrimp for a
period of approximately six months, the shrimp are harvested, frozen, packed and
sold for export.

         The Company, through its European subsidiaries,  operates sales offices
in France, the United Kingdom and Denmark.

         Reference is made to the  information set forth in Note 11 to the Notes
to Consolidated  Financial  Statements,  Part II, Item 8 hereof, with respect to
assets and operating results by geographic areas.

         No prediction can be made as to any future  increase or decrease of the
Company's  foreign  business.   The  Company  has  experienced   differences  in
profitability  between  foreign and domestic  sales due to the changing value of
the U.S.  dollar in relation to the foreign  currencies  of countries  where its
products are sold.

<PAGE>

Item 2.           PROPERTIES

The Company owns or leases the properties indicated in the following table:
<TABLE>
<CAPTION>

                                  Property and Location                            Status

<S>                                                                                <C>
One-story  concrete  and  steel  building  containing  the  Company's  principal   Leased
offices,  manufacturing plant and warehouse space,  approximately  85,000 square
feet on 4-1/2 acres. (Northvale, New Jersey)

Approximately  94,000  square  feet of  warehouse  and  office  space  in  three   Leased
buildings. (Norwood and Northvale, New Jersey)

Woodworking  plant  housed  in  several  wood,  concrete  and  steel  buildings,   Owned
approximately 180,000 square feet. (Guayaquil, Ecuador)

Woodworking  plant  housed  in  several  wood,  concrete  and  steel  buildings,   Owned
approximately 30,000 square feet on 7 acres of land. (Guayaquil, Ecuador)

14,510 acres of timberland in Ecuador.                                             Owned

2,000 acres of land for shrimp  farming in Ecuador,  including 10 wood buildings   Owned
and one concrete building totaling approximately 11,000 square feet.

444 acres of land for shrimp farming in Ecuador,  including 4 concrete buildings   Leased
and 4 wood buildings totaling 4,357 square feet.

Shrimp hatchery housed in several concrete  buildings on 3.7 acres of land. (San   Owned
Pablo, Ecuador)

Shrimp packing plant housed in three  concrete and steel  buildings on 2.6 acres   Owned
of land. (Duran, Ecuador)

Woodworking  plant housed in four concrete and steel  buildings,  165,000 square   Owned
feet on  approximately  28 acres  of  land.  (Santo  Domingo  de los  Colorados,
Ecuador)

Woodworking  plant housed in four  concrete and steel  buildings,  62,000 square   Owned
feet on approximately 7 acres of land. (Manta, Ecuador)

Woodworking   plant  housed  in  one  wood  building,   26,000  square  feet  on   Owned
approximately 8 acres of land. (Quevedo, Ecuador)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                                <C>
Maintenance  facilities for the Balsa Raw Material  Department in a concrete and   Owned
wood building, 16,875 square feet.  (Quevedo, Ecuador)

Office space in concrete building, 8,489 square feet. (Guayaquil, Ecuador)         Owned

Office space in concrete building, 1,000 square feet.  (Croydon, U.K.).            Leased

Office space in stone and wood building, 2,000 square feet. (Paris, France)        Lease
</TABLE>

         All of the above properties,  except the shrimp farming land,  hatchery
and  packing  plant and  approximately  2,000  square  feet of  office  space in
Northvale, New Jersey, are used in the core materials business.

         All of the Company's properties, plants and equipment are considered to
be presently sufficient for their respective purposes.

Item 3.           LEGAL PROCEEDINGS

         Not applicable.

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

         There was no submission of matters to a vote of security holders during
the fourth quarter of 1999.


<PAGE>
                                    PART II

Item 5.           MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
                  STOCKHOLDER MATTERS

         The  Company's  Common  Stock is traded on the Nasdaq  National  Market
under the Symbol:  BTEK.  The  following is the range of high and low prices for
the last two years.

                                 1999                            1998
                         ---------------------           --------------------
                           HIGH         LOW               HIGH         LOW

1st Quarter              $10.44        $8.00             $10.50       $7.63
2nd Quarter               10.00         7.63              12.00        8.75
3rd Quarter               10.00         7.75              10.81        8.53
4th Quarter                8.25         7.00              11.75        9.75


         The Company had approximately 143 stockholders of record as of March 2,
2000.

         No cash dividends were paid during the past two years.

<PAGE>


Item 6.           SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>

(Dollars in thousands except per share amounts)
YEARS ENDED DECEMBER 31,

                                              1999          1998           1997           1996          1995
                                              ----          ----           ----           ----          ----
<S>                                      <C>            <C>            <C>            <C>            <C>
Net sales                                $   86,027     $   67,695     $   56,140     $   48,366     $   45,784

Net income                                    2,816          3,259          1,841            450          1,962

Earnings per common share                      1.12           1.29            .73            .18            .78

Total assets                                 52,905         46,077         41,755         39,315         38,816

Long-term obligations                           591          1,581          3,015          1,957          1,993

Cash  dividends  declared per common
      share                                      --             --             --             --             --

Average shares outstanding                2,523,261      2,523,261      2,523,261      2,523,261      2,523,261
</TABLE>

<PAGE>

Item 7.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

         The  primary  sources  of  liquidity  historically  have  been  and are
expected to continue to be cash flow  generated  from  operations  and available
borrowings under short-term lines of credit. The Company increased its borrowing
capacity under its domestic line of credit to $12.5 million in 1999. The Company
also  continues  to  have  lines  of  credit  in  Ecuador  and  Europe  totaling
approximately $4.7 million. Working capital and borrowing requirements increased
in 1999 and are  expected to  continue to increase as a result of the  Company's
expanded  operations as a seafood importer as well as organic growth in its core
material  business.  Capital  expenditures  are  expected  to  be  funded  by  a
combination  of  cash  generated  from  operations  and  outside  financing,  if
necessary.

         The Company's  financial position remains strong. At December 31, 1999,
the Company had working  capital of $14.8  million  compared to $13.8 million at
December 31, 1998.  Cash was  provided  and used in varying  amounts  during the
two-year  period,  principally as a result of changes in the elements of current
assets and current liabilities and in the amount of cash provided by net income.
Inventories  and  accounts  receivable  increased  in 1999 due to the  Company's
expansion into the seafood import business. The Company's short-term borrowings,
which were used to finance higher working capital  requirements,  also increased
in 1999.

         Cash used in investing  activities for the three-year period was due to
investments  in balsa  plantations,  purchase  of new  equipment  in addition to
replacement  of old equipment and structural  improvements  of the shrimp ponds.
The Company has no material commitments for capital expenditures.

         The Company had unused  lines of credit of  approximately  $6.7 million
with a domestic  bank,  approximately  $1.6  million with  Ecuadorian  banks and
approximately $0.7 million with European banks for working capital purposes. The
Company  expects  that  future  operations  and its unused  lines of credit will
provide  sufficient  resources to support its planned expansion and maintain its
favorable liquid position.


RESULTS OF OPERATIONS FOR THE YEARS
ENDED DECEMBER 31, 1999, 1998 AND 1997

         Total  sales  increased  27%,  21%  and 16% in  1999,  1998  and  1997,
respectively.  The gains in all three years were due to increased core materials
and seafood sales.

         Core material sales were  $58,938,000,  $53,600,000  and $44,004,000 in
1999, 1998 and 1997, respectively.  The continued robust economy has resulted in
strong demand in all industries that use core materials, including the Company's
largest  customer group,  the boating  industry.  Many of the Company's end user
markets,  including boating, are highly cyclical. Demand within those industries
is  dependent  upon,  among  other  factors,  discretionary  income,  inflation,
interest  rates and consumer  confidence.  Fluctuating  interest rates and other
changes in economic conditions make it difficult to forecast short or long range
trends.  The  increase  in core  material  sales  in 1999  compared  to 1998 was
attributable to higher pricing and volume.

         Seafood sales were  $27,089,000,  $14,095,000  and $12,136,000 in 1999,
1998 and 1997,  respectively.  The  increase  in 1999 was the result of sales of

<PAGE>

seafood products from the Company's  import  business,  which began in the first
quarter.  The  increases  in 1998 and 1997 were the  result of higher  volume of
shrimp shipped.

         The overall gross margin as a percentage of sales decreased in 1999 and
increased in 1998 and 1997. The typical margin in the seafood import business is
lower  than  the  company's  historical  margins  realized  as a core  materials
producer/distributor  and shrimp  producer.  The  overall  margin was  therefore
expected to decline in 1999 as a result of the Company's  importing  activities.
The margin for the Company's core products  remained  approximately  the same in
1999 after  increasing in 1998 and 1997. The margins  primarily  improved due to
improved  pricing.  The margins  from shrimp sales  decreased in 1999,  1998 and
1997. A virus,  commonly called "White Spot" disease,  has affected shrimp farms
in South  America and other  parts of the world.  This  disease has  resulted in
lower revenues in 1999 because of 1) lower production at the Company's farms and
2) the Company is harvesting its production earlier (smaller sizes sell for less
per pound than larger sizes). There has also been increased volatility in shrimp
prices in 1999 as  compared to 1998.  Lower  revenues  have  resulted in a lower
gross  margin for 1999 as compared to 1998.  The Company is taking all  possible
steps to mitigate the effect of this disease on its farms, but since other farms
in South America are effected,  no determination can be made as to its longevity
and effect on shrimp  prices in the  marketplace.  The gross  margin from shrimp
sales  decreased  in 1998 and 1997.  The decrease in margins in 1998 and 1997 is
attributable  to a higher  volume of shrimp  purchased  from outside  suppliers,
which have lower margins than shrimp grown at the Company's own farms.

         Selling,  general and administrative  expenses as a percentage of sales
declined in 1999, 1998 and 1997. The seafood import business, which began during
the first quarter of 1999, has a lower  percentage of S,G&A expenses to revenues
as compared to the Company's historical relationship. This, as expected, reduced
S,G&A expenses as a percentage of sales. The decline in all years, but primarily
1998 and  1997,  was due to a better  absorption  of fixed  expenses,  primarily
general and administrative expenses, as a result of increased sales.

         Sales and expenses  were  affected in all three years by the  different
exchange  rates  applied in  translating  the books of accounts of the Company's
foreign subsidiaries.

         Interest  expense  decreased in 1999 after increasing in 1998 and 1997.
In 1999, the Company's  short-term  borrowings for working  capital  purposes in
Ecuador were primarily U.S. dollar  denominated  loans.  Sucre-based  loans were
available on a limited basis during much of 1999. In 1998, the Company  borrowed
money  for  working  capital  purposes  in  Ecuador  in local  currency  (sucre)
denominated  loans.  The sucre-based  loans bear higher interest rates than U.S.
dollar loans, which was partially offset by gains resulting from the devaluation
of the sucre.  This practice  increased  interest expense in 1998 as compared to
1997 but created a corresponding  foreign exchange gain. The Company's  interest
rate  on  U.S.  loans  was  lower  in  1999  and  its  average  borrowings  were
significantly  higher in 1999 as compared to 1998. The level of borrowing in all
periods  is  related  to the  Company's  working  capital  needs and cash  flows
generated from operations.

         The Company had a foreign exchange loss of $336,000 in 1999 compared to
a gain in 1998 of  $814,000  and a loss of $84,000 in 1997.  Gains were lower in
1999 due mainly to the  Company's  shift from sucre based to dollar  denominated
loans  described  above.  Translation  gains and losses are mainly caused by the
relationship of the U.S. dollar to the foreign currencies in the countries where
the Company operates, and arise when translating foreign currency balance sheets
into U.S.  dollars.  The Company utilizes  foreign  exchange  contracts to hedge
certain  inventory  purchases  and may  also  employ  certain  strategies  whose
objective is to reduce earnings and cash flow volatility associated with foreign
exchange  rate  changes.  The  Company has not and does not intend to enter into
foreign currency transactions for speculative purposes.

<PAGE>

Management  is unable to forecast the impact of  translation  gains or losses on
future  periods  due  to the  unpredictability  in the  fluctuation  of  foreign
exchange.

         The effective  income tax rate amounted to 32% in 1999, 26% in 1998 and
28% in 1997.  Reconciliation of the effective rate with the U.S.  statutory rate
is detailed in Note 8 to the Notes to Consolidated Financial Statements.

Year 2000

         The Company experienced no major problems with its internal information
technology ("IT") systems and non-IT systems, nor did it experience any problems
with critical suppliers,  customers and other third parties the Company utilizes
for various processing functions. The costs of Year 2000 compliance did not have
a material effect on its financial position or results of operations.  There can
be no assurance, however, that the Company or its' suppliers may not face future
problems as a result of Year 2000 issues.

New Accounting Pronouncements


         In June 1998, the Financial  Accounting Standards Board issued SFAS No.
133,  "Accounting for Derivative  Instruments and Hedging Activities," which was
amended by SFAS No. 137. The  statement  establishes  accounting  and  reporting
standards for derivative instruments and hedging activities and requires that an
entity  recognize all derivatives as either assets or liabilities in the balance
sheet and measure those  instruments at fair value.  Provisions of the statement
are required to be adopted for years  beginning after June 15, 2000. The Company
is currently  evaluating the impact of this statement on its financial  position
and results of operations.

                                    * * * * *

Forward Looking Statements - Cautionary Factors

         The  foregoing   discussion  and  analysis   contains   forward-looking
statements  regarding  the Company.  Because such  statements  include risks and
uncertainties,  actual  results may differ  materially  from those  expressed or
implied by such  forward-looking  statements.  Factors  that could cause  actual
results  to  differ  materially  include,  but  are  not  limited  to,  economic
conditions  in the  United  States,  Europe and  Ecuador  that  affect  relative
interest rates, foreign exchange rates and other costs and prices related to the
Company's business.

<PAGE>

Item 7a.          QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         The Company is exposed to various  market risks,  including  changes in
commodity  prices,  foreign currency  fluctuations and interest rates. To manage
the volatility  associated with foreign currency  purchases of materials created
in the normal course of business,  the Company  enters into a limited  number of
derivative hedging  transactions.  Gains and losses related to qualifying hedges
of foreign  currency firm  commitments are deferred and included in the basis of
the underlying transactions.  The deferred gains and losses on these instruments
at December  31,  1999 were not  material.  The  Company  does not hold or issue
derivative financial instruments for speculative purposes.

         In addition,  in order to hedge currency  exposures  related to the net
investments  in foreign  subsidiaries,  the Company  utilizes local currency and
U.S. dollar denominated financing entered into by the subsidiaries.  The Company
manages  interest  rate cost  relating  to these  financings  by using  variable
interest  rates.  Although  the  use of  variable  interest  rate  bearing  debt
instruments  has the potential for market risk, the Company's  overall  interest
rate  exposure  as of and during the year ended  December  31, 1999 would not be
materially affected by a near-term change in interest rates.

         For  quantitative   disclosure   regarding  the  Company's   derivative
instruments see Note 12 to the Consolidated Financial Statements.


Item 8.           FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         The   consolidated   financial   statements  of  the   registrant   and
subsidiaries, and supplemental schedule are annexed hereto and made part hereof.

Item 9.           CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                  ACCOUNTING AND FINANCIAL DISCLOSURE

         None.

<PAGE>
                                    PART III


Item 10.          DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

         Omitted from this Report since a definitive Proxy  Statement,  pursuant
to Regulation 14A containing  the required  information,  will be filed with the
Commission not later than 120 days after the close of registrant's fiscal year.

Item 11.          EXECUTIVE COMPENSATION

         Omitted from this Report since a definitive Proxy  Statement,  pursuant
to Regulation 14A containing  the required  information,  will be filed with the
Commission not later than 120 days after the close of registrant's fiscal year.

Item 12.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                  MANAGEMENT

         Omitted from this Report since a definitive Proxy  Statement,  pursuant
to Regulation 14A containing  the required  information,  will be filed with the
Commission not later than 120 days after the close of registrant's fiscal year.

Item 13.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         Inapplicable.


<PAGE>

                                     PART IV

Item 14.          EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
                  FORM 8-K

                   (a)(1) and (2)                 Consolidated Financial
                                                  Statements    and    Financial
                                                  Statement  Schedule  See Index
                                                  to   Consolidated    Financial
                                                  Statements    and    Financial
                                                  Statement   Schedule   annexed
                                                  hereto and made part hereof.

                  (b)                             Reports on Form 8-K

                                                  No  reports  on Form  8-K were
                                                  filed by or on  behalf  of the
                                                  registrant   for  the  quarter
                                                  ended  December 31, 1999,  the
                                                  last  quarter  in  the  period
                                                  covered by this Annual  Report
                                                  on Form 10-K.

                  (c)                             List of Exhibits

                  Exhibit No.                     Item

                   3.2                            Articles   of    Incorporation
                                                  (By-laws),  filed  as  Exhibit
                                                  3.2 to Registration  Statement
                                                  on Form S-1(Reg.  No. 2-44764)
                                                  is   incorporated   herein  by
                                                  reference

                   10.1                           Revolving  Loan  and  Security
                                                  Agreement  between the Company
                                                  and   Summit    Bank,    dated
                                                  December 21, 1999 *


                  21                              Subsidiaries of Registrant *

                  27                              Financial Data Schedule *


                  *  Filed herewith


<PAGE>

                                   SIGNATURES



Pursuant to the  requirements of Section 13 of 15(d) 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.



                                                         BALTEK CORPORATION
                                                              Registrant



                                                 By  /s/ Jacques Kohn
                                                    -----------------
                                                         Jacques Kohn,
                                                         President
                                                         Director



                                                 By  /s/ Ronald Tassello
                                                     -------------------
                                                         Ronald Tassello,
                                                         Controller (Principal
                                                         Financial Officer and
                                                         Principal Accounting
                                                         Officer)

Dated:  March 22, 2000

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  Registrant and
in the capacities and on the date indicated:

By  /s/ Jacques Kohn                       By  /s/ Benson J. Zeikowitz
    -----------------                          -----------------------
     Jacques Kohn,                              Benson J. Zeikowitz
     Director                                   Director

By  /s/ Margot W. Kohn                     By  /s/ William F. Nicklin
    -------------------                        ----------------------
     Margot W. Kohn,                            William F. Nicklin
     Director                                   Director

By  /s/ Henri-Armand Kohn                  By  /s/ Jean J. Kohn
    ----------------------                     ----------------
     Henri-Armand Kohn,                         Jean J. Kohn
     Director                                   Director

By  /s/ Bernard J. Wald
    --------------------
     Bernard J. Wald
     Director













Dated March 22, 2000