Amid the explosion of fundamental knowledge generated from transgenic
animal models, a small group of scientists has been producing transgen
ic livestock with goals of improving animal production efficiency and
generating new products. The ability to modify mammary-specific genes
provides an opportunity to pursue several distinctly different avenues
of research. The objective of the emerging gene ''pharming'' industry
is to produce pharmaceuticals for treating human diseases. It is argu
ed that mammary glands are an ideal site for producing complex bioacti
ve proteins that can be cost effectively harvested and purified. Conse
quently, during the past decade, approximately a dozen companies have
been created to capture the US market for pharmaceuticals produced fro
m transgenic bioreactors estimated at $3 billion annually. Several pro
ducts produced in this way are now in human clinical trials. Another r
esearch direction, which has been widely discussed but has received le
ss attention in the laboratory is genetic engineering of the bovine ma
mmary gland to alter the composition of milk destined for human consum
ption. Proposals include increasing or altering endogenous proteins, d
ecreasing fat, and altering milk composition to resemble that of human
milk. Initial studies using transgenic mice to investigate the feasib
ility of enhancing manufacturing properties of milk have been encourag
ing. The potential profitability of gene ''pharming'' seems clear, as
do the benefits of transgenic cows producing milk that has been optimi
zed for food products. To take full advantage of enhanced milk, it may
be desirable to restructure the method by which dairy producers are c
ompensated. However, the cost of producing functional transgenic cattl
e will remain a severe limitation to realizing the potential of transg
enic cattle until inefficiencies of transgenic technology are overcome
. These inefficiencies include low rates of gene integration, poor emb
ryo survival, and unpredictable transgene behavior.