This publication examines the issues involved in the effective application of biotechnology in ACIAR-funded programs. The author, Dr Vimala Sarma, a former Secretary to Australia's Genetic Manipulation Advisory Committee, examined current developments in biotechnology and their relevance to ACIAR's activities while seconded to ACIAR during 1994. This report represents her informed assessment of the issues, their significance for ACIAR and its partners in Australia and overseas, and recommended actions for employing the tools of biotechnology within each of ACIAR's research programs.