Corn starch and soybean oil are suitable carbon sources for the production of tetracycline by Streptomyces aureofacience CG-1. However, it could not produce more than 6 g/l of tetracycline even if initial corn starch concentration was increased to more than 100 g/l. It was confirmed by shaking flask experiments that the k(L)a in a mixture of 2% soybean oil in water was four folds compared with that without soybean oil. With the addition of soybean oil to the starch medium in a shaking flask, tetracycline production was significantly improved. By scaling-up to a 5.5-l airlift bioreactor from 500-ml Erlenmeyer flask, more than 10 g/l of tetracycline was produced with the addition of 60 g/l of soybean oil to the medium containing 100 g/l of corn starch. The dissolved oxygen level in the airlift bioreactor containing soybean oil was higher than that without soybean oil. This suggests that soybean oil is not only a suitable carbon source but is also a surface-active agent which may accelerate the oxygen transfer. This may lead to the possibility of the enhanced production of tetracycline at a low cost in airlift bioreactor.