Biological control, especially with beneficial fungi in the genus trichoderma, is poised to become a major component of plant pest management strategies. These beneficial fungi, unlike chemical pesticides, can provide season-long protection against root diseases, are nontoxic to plants or vertebrates, and are unlikely to pollute soil or water. Phase I research demonstrated that useful products based on this fungi can be produced; however, serious impediments to large-scale production remain. The objectives of the proposed Phase II research are designed to overcome these difficulties and are as follows: 1. Optimize matric phase production to determine or obtain A. The relationship of water potential in the production matrix to product quality, especially shelf life. B. Increase active propagules in the matric phase process by adjustments of matrix during growth, and nutrient levels and inert substrates. C. Determine the influence of light on biomass yield and quality. D. Determine effective drying parameters. 2. Determine the influence of physical processing on propagule integrity, to determine the best methods of post-production handling. 3. Obtain equipment and optimize processes for in-house sterilization, blending, inoculating and handling matric phase media for commercial production.Applications:Methods for large-scale and cost-effective production of highly effective biocontrol fungi largely are unavailable. The proposed research is designed to solve remaining technical problems in production of products based on t. Harzianum. Once these problems are solved, biowork's products will be available for numerous applications in plant pest management. The proposed research will provide technical solutions impeding full-scale commercial development of t. Harzianum, and provide a model for development of production methodologies of other beneficial fungi. As a consequence, chemical pesticide usage will be reduced by the availability of environmentally-friendly biological alternatives.