Biotechnology is the application of single or multicellular organisms and of associated or derived enzyme systems to the production of desirable products. Particular discussion has been made of the derivation of fats and oils from animals, plants and microorganisms. General consideration has been given to methods, primarily plant breeding and agronomic practices for the improvement of the quantity and quality of oil produced by soybean, rapeseed, palm and sunflower. The possible importance of yeasts, fungi and algae as sources of single cell oil has been examined. A particular role of these systems in the production of specialty oils has been suggested. Enzyme systems, either associated with the intact cell or in isolation, can be used to varying degrees of success in either a free or immobilized form. Particular reference has been made to application of these systems to reactions including specific hydrolysis of triacyb glycerols, acylation of glycerol, interesterification of triacylglycerols, wax ester formation and steroid transformations. Consideration has been given to particular plants and microorganisms as sources of new fats and oils. The major impact of biotechnology on the industry is believed to be associated with the production of high value specialty products including cocoa butter substitutes, biosurfactants, waxes and various prostaglandin derivatives. General consideration has been given to the possible relative importance of plant and microbial systems, engineering and scale-up problems, and overall economics of present biotechnological procedures.