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

                                    FORM 10-K

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



  For the Fiscal Year Ended                            Commission file number
    December 31, 2000                                         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. [ ]

     The  aggregate  market value of the voting stock held by  nonaffiliates  on
March 2, 2001 amounted to $9,622,000.

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common  stock as of the latest  practicable  date,  March 7, 2001:  2,523,261
shares, Common Stock, $1.00 par value.

     Documents  incorporated by reference:  Portions of the  registrant's  proxy
statement  dated  April  27,  2001 for use in  connection  with its 2001  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
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.


<PAGE>

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.  During the year 2000,  Ecuador  adopted the U.S. dollar as its national
currency,  replacing the sucre. The Company realized a one-time benefit from the
devaluation of the sucre when Ecuador  converted its currency to the dollar.  In
accordance with local regulations,  the Company has converted its accounting and
financial records from the sucre to the dollar.

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.

         For the years ended December 31, 2000 and 1999,  approximately  61% and
79% respectively,  of the shrimp production was sold to the European market; the
balance was sold to the U.S. and Canadian markets through the Company's  seafood
importing subsidiary.

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.

         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.


<PAGE>


Material Customer

         No customer  accounted  for more than 10% of revenues in 2000,  1999 or
1998.

Backlog

         As of December  31, 2000 and 1999,  the Company had a backlog of orders
believed to be firm in the amounts of $9,071,000 and  $9,607,000,  respectively.
The 2000 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 shrimp.  The  Company's  production of shrimp has
been  negatively  effected  by the  "White  Spot"  virus in 1999 and  2000.  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  rigid  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
"Coremat(R)", also a low-density laminate bulker.


<PAGE>


Estimated Research Costs

         The  Company  has  incurred  approximately  $565,000  during  2000  for
research  and  development,  compared  to  expenditures  of $597,000 in 1999 and
$609,000 in 1998. 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 1,120  employees in Ecuador,  182 in the United States,
10 in Europe and one in Japan, aggregating 1,313 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, 2000 (dollars in thousands):

  Year               Core Materials         Seafood                Total
  2000                  $63,175             $25,885              $89,060
                             71%                 29%                 100%
  1999                  $58,938             $27,089              $86,027
                             69%                 31%                 100%
  1998                  $53,600             $14,095              $67,695
                             79%                 21%                 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  15,773  acres of  forest  land in
Ecuador.  In  addition,  the  Company  owns and  operates  two  shrimp  farms on
approximately 2,300 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  operates  sales  offices in France,  the United  Kingdom,
Denmark, Japan and Uruguay.

         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  offices,       Leased
manufacturing  plant and  warehouse  space,  approximately  85,000  square  feet on 4-1/2
acres. (Northvale, New Jersey)

Approximately  124,000  square feet of  warehouse  and office  space in three  buildings.       Leased
(Norwood and Northvale, New Jersey)

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

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

15,773 acres of timberland in Ecuador.                                                           Owned

1,800 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 and 4       Leased
wood buildings totaling 4,357 square feet.

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

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

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

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

Woodworking  plant housed in one wood  building,  26,000 square feet on  approximately  8        Owned
acres of land.  (Quevedo, Ecuador)
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                  Property and Location                                         Status
<S>                                                                                             <C>
Maintenance  facilities  for the Balsa Raw  Material  Department  in a concrete  and wood        Owned
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)                     Leased
</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 2000.


<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.

                             2000                           1999
                    ------------------------       -----------------------
                        HIGH          LOW              HIGH         LOW

1st Quarter           $ 8.75       $ 7.31            $10.44       $8.00
2nd Quarter             7.88         6.38             10.00        7.63
3rd Quarter             7.38         6.50             10.00        7.75
4th Quarter             7.75         6.75              8.25        7.00


         The Company had approximately 130 stockholders of record as of March 7,
2001.

         No cash dividends were paid during the past two years.


<PAGE>


Item 6.  SELECTED FINANCIAL DATA

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

<TABLE>
<CAPTION>
                                           2000           1999         1998            1997           1996
                                        ---------       ---------    ---------      ----------     ---------
<S>                                       <C>             <C>          <C>             <C>           <C>
Net sales                                 $89,060         $86,027      $67,695         $56,140       $48,366

Net income                                  2,882           2,816        3,259           1,841           450

Earnings per common share                    1.14            1.12         1.29            .73            .18

Total assets                               57,531          52,905       46,077          41,755        39,315

Long-term obligations                         128             591        1,581           3,015         1,957

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.  Effective  January 1, 2001, the
Company  increased its borrowing  capacity  under its domestic line of credit to
$16.5 million. The Company also continues to have lines of credit in Ecuador and
Europe  totaling  approximately  $4.6  million.  Working  capital and  borrowing
requirements  increased  in 2000 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, 2000,
the Company had working  capital of $16.6  million  compared to $14.8 million at
December 31, 1999.  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 both years 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 2000.

         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  $5.7 million
with a domestic  bank,  approximately  $0.2  million with  Ecuadorian  banks and
approximately $0.6 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, 2000, 1999 AND 1998

         Total  sales  increased  4%,  27%  and  21% in  2000,  1999  and  1998,
respectively.  The gains in all three years were due to increased core materials
sales and higher seafood sales in 1999 and 1998.

         Core material sales were  $63,175,000,  $58,938,000  and $53,600,000 in
2000, 1999 and 1998, 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 2000 compared to 1999 was due to
higher volume.

         The  Company's  revenues  for the year  ended  December  31,  2000 were
negatively affected by the fluctuation of foreign currencies, particularly those
of its European subsidiaries, compared to the U.S. dollar.

<PAGE>

         Seafood sales were  $25,885,000,  $27,089,000  and $14,095,000 in 2000,
1999  and  1998,  respectively.  The  decrease  in  2000  was  the  result  of a
significant  decline in sales of shrimp,  partially  offset by improved sales of
seafood  products  from the  Company's  import  business.  The  amount of shrimp
produced at the Company's farms in 2000 declined by 62% compared to 1999 and 66%
compared to 1998, as described below. The increase in 1999 was due to sales from
the import  business,  and the increase in 1998 due to a higher volume of shrimp
shipped.

         The overall gross margin as a percentage of sales  remained the same in
2000  compared to 1999,  decreased in 1999 and  increased  in 1998.  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 is  therefore  determined  not only by the  margins in each
segment but also by the mix of seafood and materials  sales.  The margin for the
Company's core products improved in 2000 and remained  approximately the same in
1999 after increasing in 1998. The margins improved due to improved pricing and,
in 2000, due to the one-time  benefit realized from the devaluation of the sucre
when Ecuador  converted its national  currency to the U.S.  dollar.  The margins
from  seafood  sales  decreased  in 2000,  1999 and 1998.  The White  Spot virus
continued to  negatively  affect the shrimp  farms,  resulting in  significantly
lower  production  and  revenues.  The Company is taking all  possible  steps to
mitigate the effect of this disease on its farms but no definitive determination
can be made as to its longevity and affect on shrimp prices in the  marketplace.
The  decrease in margins in 1998 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.  A decline in shrimp  market  prices during 2000 also
adversely affected the Company's margins from its seafood import business.

         Selling,  general and administrative  expenses as a percentage of sales
increased  in 2000 after  declining  in 1999 and 1998.  S,G&A  increased in 2000
primarily as a result of increases  in selling  expenses.  In dollar terms S,G&A
expenses have increased as a result of the Company's growth.  The seafood import
business,  which began during the first quarter of 1999, had 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
in 1999 and 1998.

         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 2000 and 1999 after increasing in 1998.
In 2000 and 1999,  the  Company's  short-term  borrowings  for  working  capital
purposes in Ecuador were primarily U.S. dollar  denominated  loans. 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 but
created a corresponding  foreign  exchange gain. The Company's  interest rate on
U.S. loans was higher in 2000 and its average  borrowings  were lower in 2000 as
compared  to 1999.  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 $328,000  and  $336,000 in
2000 and 1999, respectively,  compared to a gain in 1998 of $814,000. Gains were
realized in 1998 due mainly to the Company's sucre based 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

<PAGE>
transactions  for  speculative  purposes.  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 37% in 2000, 27% in 1999 and
26% in 1998.  Reconciliation of the effective rate with the U.S.  statutory rate
is detailed in Note 8 to the Notes to Consolidated Financial Statements.

Ecuador - Dollarization

         The  Ecuadorian  government  has  completed its plans to adopt the U.S.
dollar as its national  currency.  During the month of September  2000, the U.S.
dollar   officially   replaced  the  Sucre,  and  the  Sucre  was  removed  from
circulation. In accordance with the local regulations, the Company has converted
its  accounting  and  financial  books  and  records  from the Sucre to the U.S.
dollar.

                         New Accounting Pronouncements

         Statement of financial  Accounting  Standards ("SFAS") 133,  Accounting
for  Derivative  Instruments  and  Hedging  Activities,  as amended by SFAS 137,
Accounting for Derivative  Instruments  and Hedging  Activities-Deferral  of the
Effective Date of FASB  Statement No. 133, and SFAS 138,  Accounting for Certain
Derivative  Instruments  and  Certain  Hedging  Activities,  was  adopted by the
Company on  January 1, 2001.  SFAS 133  requires  that an entity  recognize  all
derivatives as either assets or liabilities measured at fair value.  Adoption of
these new accounting  standards will result in a one time  cumulative  after-tax
reduction in net income of approximately  $35,000 and other comprehensive income
of  approximately  $16,000 in the first  quarter of fiscal  2001 for the initial
adoption of SFAS 133,  as  amended.  The  adoption  will also impact  assets and
liabilities recorded in the Company's consolidated balance sheet.

                                    * * * * *

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, 2000 were not material.

         The majority of the Company's  working  capital  borrowings at December
31, 2000 were subject to variable  interest  rates.  The Company entered into an
interest  rate swap in 2000 to manage a portion of its  exposure to fixed versus
floating  interest rates.  The Company's  policy is to use foreign  currency and
interest  rate  derivative   instruments  to  the  extent  necessary  to  manage
exposures.  The Company does not hold or issue derivative financial  instruments
for speculative purposes.

         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, 2000, the last
                 quarter in the period  covered by  this  Annual  Report on Form
                 10-K.


<PAGE>

                                  EXHIBIT INDEX

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  (incorporated  by  reference  to the
         Company's  annual  report on Form 10-K for the year ended  December 31,
         1999).

10.1.1   First  Amendment  to  Revolving  Loan  and  Security   Agreement  dated
         September   30,  2000  between   Baltek   Corporation   and   Crustacea
         Corporation,  collectively,  as Borrower,  and Summit  Bank,  as Lender
         (incorporated  by reference to the Company's  quarterly  report on Form
         10-Q for the quarter ended September 30, 2000).

10.1.2   Substitute  Revolving  Credit Note dated  September  30,  2000  between
         Baltek  Corporation  and  Crustacea   Corporation,   collectively,   as
         Borrower,  and Summit Bank, as Lender (incorporated by reference to the
         Company's quarterly report on Form 10-Q for the quarter ended September
         30, 2000).

10.1.3   Second  Amendment  to  Revolving  Loan  and  Security  Agreement  dated
         December 31, 2000 between Baltek Corporation and Crustacea Corporation,
         collectively, as Borrower, and Summit Bank, as Lender *.

10.1.4   Second Substitute Revolving Credit Note dated December 31, 2000 between
         Baltek  Corporation  and  Crustacea   Corporation,   collectively,   as
         Borrower, and Summit Bank, as Lender *

10.2     Lease  Agreement  dated  September  18, 2000  between the  Company,  as
         Tenant, and Edro Associates,  as Landlord (incorporated by reference to
         the  Company's  quarterly  report  on Form 10-Q for the  quarter  ended
         September 30, 2000).

10.3     Amendment  to Lease dated  August 17,  2000  between  the  Company,  as
         Tenant,   and   Northvale   1997   Associates,   L.L.C.,   as  Landlord
         (incorporated  by reference to the Company's  quarterly  report on Form
         10-Q for the quarter ended September 30, 2000).

10.4     Executive  Employment  Agreement dated June 1, 2000 between the Company
         and  Ronald  Tassello  (incorporated  by  reference  to  the  Company's
         quarterly  report  on Form 10-Q for the  quarter  ended  September  30,
         2000).

10.5     Executive  Employment  Agreement dated June 1, 2000 between the Company
         and  Thomas  Preisel   (incorporated  by  reference  to  the  Company's
         quarterly  report  on Form 10-Q for the  quarter  ended  September  30,
         2000).

10.6     Executive  Employment  Agreement dated June 1, 2000 between the Company
         and Antonio Diaz (incorporated by reference to the Company's  quarterly
         report on Form 10-Q for the quarter ended September 30, 2000).

10.7     Agreement  dated March 5, 2001  between  the Company and Jacques  Kohn,
         Jean Kohn and Bernard Kohn *

21       Subsidiaries *

         * 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 29, 2001

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 29, 2001