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, 2001                                     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
          Northvale, New Jersey                                    07647
(Address of principal executive offices)                        (Zip Code)

                  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 8, 2002 amounted to $8,780,000.

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common  stock as of the latest  practicable  date,  March 8, 2002:  2,390,383
shares, Common Stock, $1.00 par value.

     Documents  incorporated by reference:  Portions of the  registrant's  proxy
statement  dated  April  26,  2002 for use in  connection  with its 2002  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, for the first nine months of 2001, as a
seafood 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,  electrical  generating  equipment 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(R)."  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(R)" (a
registered  trademark  of  Lantor  BV) and  "BaltekMat(R),"  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 Alcan 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, for
the first nine months of 2001, as a seafood 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,
for the  first  nine  months  of 2001,  also  operated  as a  seafood  importer,
purchasing various types of seafood products such as shrimp,  salmon and lobster
from independent  producers located  throughout the world as well as shrimp from
the Company's own farms.  During the third quarter of 2001, the Company  decided
to terminate its seafood import business.  In September 2001, the Company signed
an  agreement  with


<PAGE>


National Fish and Seafood,  Inc. ("NFS"). The agreement provided that NFS assist
the Company in selling its  inventory  to third  parties.  By December 31, 2001,
substantially all of the inventory was sold. The final inventory quantities were
sold in March 2002.

     Substantially all of the Company's balsa and all of its shrimp are produced
in Ecuador. The Company also receives small quantities of balsa from other Latin
American  countries.  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.


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, 2001 and 2000,  approximately 54% and 61%,
respectively,  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.

     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.

<PAGE>


Material Customer

     No customer accounted for more than 10% of revenues in 2001, 2000 or 1999.

Backlog

     As of  December  31,  2001 and 2000,  the  Company  had a backlog of orders
believed to be firm in the amounts of $7,415,000 and  $9,071,000,  respectively.
The 2001 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, 2000 and 2001. 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.

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  $665,000  during 2001 for research
and  development,  compared to  expenditures of $565,000 in 2000 and $597,000 in
1999. 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 965 employees in Ecuador,  174 in the United States,  13 in
Europe and one each in Japan and Uruguay, aggregating 1,154 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, 2001 (dollars in thousands):




                   Year         Core Materials       Seafood       Total
                   2001              $57,871         $20,197      $78,068
                                          74%             26%         100%
                   2000              $63,175         $25,885      $89,060
                                          71%             29%         100%
                   1999              $58,938         $27,089      $86,027
                                          69%             31%         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, for the first nine months of 2001, as a seafood
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  16,089 acres of forestland 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 18 weeks 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      Leased
U.S.  manufacturing  plant  and  warehouse  space,  approximately  85,000
square feet on 4-1/2 acres. (Northvale, New Jersey)

Two-story concrete and steel building  containing the Company's principal      Leased
offices,  manufacturing plant and warehouse space,  approximately  80,000
square feet. (Northvale, New Jersey)

Approximately  70,000  square  feet  containing  research   laboratories,      Leased
warehouse  and office space in two  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)

16,089 acres of timberland in Ecuador.                                         Owned

1,800  acres of land for shrimp  farming in  Ecuador,  including  10 wood      Owned
buildings and one concrete building totaling  approximately 11,000 square
feet.

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

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

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

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

Woodworking  plant housed in four  concrete and steel  buildings,  62,000      Owned
square 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      Owned
concrete and wood building, 16,875 square feet.  (Quevedo, Ecuador)

Apartment space in concrete  building,  approximately  1,450 square feet.      Owned
(Quevedo, Ecuador)

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

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,      Leased
France)

</TABLE>

     All of the above properties,  except the shrimp farming land,  hatchery and
packing plant 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 2001.

                                     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.

                                       2001                          2000
                                --------------------          ------------------
                                    HIGH        LOW               HIGH       LOW
                                    ----        ---               ----       ---

1st Quarter                       $ 8.38     $ 7.00             $ 8.75    $ 7.31
2nd Quarter                         8.63       7.58               7.88      6.38
3rd Quarter                         8.63       7.48               7.38      6.50
4th Quarter                         8.00       6.50               7.75      6.75


The Company had approximately 111 stockholders of record as of March 8, 2002.

     No cash  dividends  were paid during the past two years in the period ended
December 31, 2001.

<PAGE>


Item 6.        SELECTED FINANCIAL DATA

(Dollars in thousands except per share amounts)
YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>

                                    2001        2000        1999        1998        1997
                                    ----        ----        ----        ----        ----
<S>                              <C>           <C>        <C>          <C>        <C>
Net sales                        $78,068       $89,060    $86,027      $67,695    $56,140

Net income                         1,582         2,882      2,816        3,259      1,841

Earnings per common share           0.64          1.14       1.12         1.29        .73

Total assets                      55,782        57,531     52,905       46,077     41,755

Long-term obligations                302           128        591        1,581      3,015

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

Average shares outstanding     2,468,472     2,523,261  2,523,261    2,523,261  2,523,261

</TABLE>


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

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's  discussion  and  analysis of  financial  condition  and results of
operations discusses the Company's consolidated financial statements, which have
been prepared in accordance with accounting principles generally accepted in the
United  States  of  America.   The  preparation  of  these  statements  requires
management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses, and related disclosure of contingent
assets and liabilities.  On an ongoing basis, management evaluates its estimates
and judgements,  including those related to revenue  recognition,  allowance for
doubtful accounts,  inventories,  income taxes,  impairment of long-lived assets
and  contingencies.  Management bases its estimates and judgements on historical
experience and on various other factors that are believed to be reasonable under
the  circumstances,  the  results of which form the basis for making  judgements
about the carrying value of assets and liabilities that are not readily apparent
from other  sources.  Actual  results  may differ  from  these  estimates  under
different assumptions or conditions.

Management   believes  the  following   accounting  policies  involve  its  more
significant judgements and estimates used in the preparation of its consolidated
financial  statements.  Baltek  maintains  allowance  for doubtful  accounts for
estimated  losses resulting from the inability of its customers to make required
payments.  If  the  financial  condition  of the  Company's  customers  were  to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional  allowances  may be required.  The Company  adjusts its inventory for
estimated  obsolescence or unmarketable  inventory based upon assumptions  about
future  demand  and  market  conditions.  If  actual  future  demand  or  market
conditions  are less favorable  than those  projected by management,  additional
inventory  write-downs may be required.  To estimate the  recoverability  of the
Company's  property and equipment,  management must make  assumptions  regarding
estimated  future  cash flows and other  factors to  determine  the value of the
assets. If these estimates or their related  assumptions change, the Company may
be  required to record  impairment  charges not  previously  recorded  for these
assets.  Deferred  tax  assets  and  liabilities  are  determined  based  on the
difference  between the  financial  statement and income tax bases of assets and
liabilities and  carryforwards  using currently  enacted tax rates.  The Company
estimates its tax valuation allowance by assessing the future  recoverability of
the deferred tax assets.  The allowance is based on estimates of taxable  income
in each  jurisdiction  the Company operates and the period over which the assets
will be  recoverable.  In the  event  that  actual  results  differ  from  those
estimates, the Company may need to establish additional valuation allowances.


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 $16.5 million in January 2001.  The Company
also  continues  to  have  lines  of  credit  in  Ecuador  and  Europe  totaling
approximately $4.7 million. In September 2001, the Company utilized a portion of
its  equipment  line of credit to finance the  previous  purchase of $370,000 of
equipment.   Future  capital  expenditures  are  expected  to  be  funded  by  a
combination  of  cash  generated  from  operations  and  outside  financing,  if
necessary.

In September  2001,  the Company  decided to exit the seafood  import  business.
Primarily as a result of that decision, borrowing requirements were lower in the
fourth quarter  compared to peak levels earlier in the year. It is expected that
average borrowings in 2002 will be lower than 2001.

The Company  believes its financial  position  remains  strong.  At December 31,
2001, the Company had working capital of $16.8 million compared to $16.6 million
at December 31, 2000.  Cash was provided and

<PAGE>


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 2000  due to the  Company's  expansion  into  the  seafood  import
business and decreased in 2001 as a result of the exit from that  business.  The
Company's short-term borrowings decreased in 2001.

Cash  used  in  investing  activities  for  the  three-year  period  was  due to
investments in balsa plantations, purchases of new equipment and the replacement
of old  equipment.  At this time the  Company has no  material  commitments  for
capital expenditures.

At December  31, 2001,  the Company had unused lines of credit of  approximately
$9.8 million with a domestic bank,  approximately  $2.0 million with  Ecuadorian
banks and  approximately  $0.5 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, 2001, 2000 AND 1999

Total sales decreased 12% in 2001 and increased 4% in 2000. The decrease in 2001
is due to lower core material and seafood  sales.  The gains in 2000 were due to
increased core materials sales and higher seafood sales.

Core material sales were $57,871,000,  $63,175,000 and $58,938,000 in 2001, 2000
and 1999, respectively. Domestic sales were lower in 2001 compared to 2000. This
reduction  was  partly  offset  by a strong  increase  in sales in  Europe.  The
reduction in domestic sales was primarily due to lower demand from the Company's
largest end user group, the boating industry.  According to published reports in
the industry,  wholesale boat shipments in the domestic marine market  decreased
by 20 percent or more for the year. The increase in European sales resulted from
higher shipments to manufacturers of windmill blades. Revenues increased in 2000
due to strong demand in many  industries,  including the boating  industry.  The
generally  robust  economy  during 2000 resulted in strong demand in 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.

Management  believes that the Company's revenues for the year ended December 31,
2001  were  negatively  affected  by  the  fluctuation  of  foreign  currencies,
particularly those of its European subsidiaries, compared to the U.S. dollar.

Seafood sales were  $20,197,000,  $25,885,000  and $27,089,000 in 2001, 2000 and
1999, respectively.  Management believes that the decrease in 2001 is due to: 1)
lower  demand  in the  entire  seafood  industry,  2)  production  levels at the
Company's  shrimp farms and 3) the  Company's  decision to terminate its seafood
import  business  during  the third  quarter of 2001.  A downturn  in the entire
seafood industry negatively affected prices for many seafood products, including
shrimp  produced at the farms and  products  sold through the  Company's  import
subsidiary.  Unfavorable  economic  conditions in the U.S. and Japan during 2001
resulted in lower  consumption and therefore lesser demand for seafood products.
The White Spot virus continued to affect the shrimp farms negatively,  resulting
in lower production and revenues  compared to historical  levels.  The amount of
shrimp  produced at the Company's  farms in 2001 was  approximately  the same as
2000;  production  in 2000  declined by 62% compared to 1999 and 66% compared to
1998.  The

<PAGE>


decrease in revenues 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.

During the third quarter of 2001,  the Company  decided to terminate its seafood
import  business.  As a result,  revenues  in the  fourth  quarter  of 2001 were
significantly  lower than the  comparable  period in 2000 and are expected to be
significantly lower in 2002 compared to 2001.

The overall gross margin as a percentage of sales increased slightly in 2001 and
remained the same in 2000 compared to 1999. It is the Company's  experience that
the typical margin in the seafood  import  business is lower than its 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 core material  sales.  The margin for
the Company's core products  decreased in 2001 and improved in 2000. The margins
decreased in 2001 due primarily to higher costs in Ecuador. The margins improved
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 2001 and 2000 because of the continuing  effects
of the White Spot virus and a decline in  commodity  selling  prices for seafood
products.  Subsequent to its decision to terminate the seafood import  business,
the Company  recorded  losses of  approximately  $316,000 upon the sale or final
disposition of the seafood import inventory.

Selling,  general and administrative  expenses ("SG&A") as a percentage of sales
increased in 2001 and 2000. The seafood import  business has a lower  percentage
of SG&A  expenses  to  revenues as  compared  to the  Company's  core  materials
segment. The overall percentage is therefore influenced by the amount of SG&A in
each  segment  and the  relationship  of each  segment's  revenues  and  SG&A to
aggregate amounts.  In dollar terms, SG&A expenses increased in 2001 as a result
of increases in commercial insurance,  medical insurance and expenses related to
the closure of the seafood import  business.  "SG&A" expenses  increased in 2000
primarily as a result of increases in selling expenses.

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

Interest expense increased in 2001 and decreased in 2000. The average borrowings
were higher in 2001 compared to 2000. The interest rates on U.S. dollar loans in
Ecuador were lower and average  rates in the U.S. were lower in 2001 compared to
2000. In both periods,  interest  rates on dollar  denominated  loans in Ecuador
were  significantly  higher than rates  available  to the Company in the U.S. In
2000,  the  Company's  short-term  borrowings  for working  capital  purposes in
Ecuador were primarily U.S. dollar  denominated  loans.  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  gain of  $53,000  in 2001 and  losses of
$328,000 and $336,000 in 2000 and 1999,  respectively.  Remeasurement  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
remeasuring  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.   Management   is  unable  to  forecast  the  impact  of
remeasurement  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 2001,  37% in 2000 and 27% in
1999.  Reconciliation  of the  effective  rate with the U.S.  statutory  rate is
detailed in Note 8 to the Notes to Consolidated Financial Statements.

<PAGE>


New Accounting Pronouncements

In October 2001,  the Financial  Accounting  Standards  Board  ("FASB"),  issued
Statement of Financial Accounting Standard ("SFAS") No. 144, "Accounting for the
Impairment  or  Disposal  of  Long-Lived   Assets,"  which  addresses  financial
accounting and reporting for  long-lived  assets.  The Company  expects to adopt
this  Standard  during the first  quarter of fiscal  2002.  Management  does not
believe that the adoption of this  standard  will have a material  impact on the
Company's financial position or 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.

The majority of the Company's  working  capital  borrowings at December 31, 2001
were subject to variable  interest rates.  The Company entered into two interest
rate swaps in 2001 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,  2001,  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 (incorporated by reference
to the Company's annual report on Form 10-K for the year ended December 31,
2000).

     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 (incorporated by reference to the Company's annual
report on Form 10-K for the year ended December 31, 2000).

     10.1.5 Third Amendment to Revolving Loan and Security Agreement dated
September 28, 2001 between Baltek Corporation and Crustacea Corporation,
collectively, as Borrower, and Fleet National 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).

<PAGE>



     10.6 Executive Employment Agreement dated June 1, 2000 between the Company
and Antonio R. 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 (incorporated by reference to the Company's annual
report on Form 10-K for the year ended December 31, 2000).

     10.8 Executive Employment Agreement dated May 1, 2001 between the Company
and Antonio L. Diaz *

     10.9 Executive Employment Agreement dated January 1, 2002 between the
Company and Harold Gutmann *

     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,
                                                 Chief Financial Officer and
                                                 Treasurer (Principal
                                                 Financial Officer and
                                                 Principal Accounting
                                                 Officer)

Dated:  March 29, 2002

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, 2002