First there were herbicide-tolerant soybeans and worm-resistant corn. Despite the controversy swirling around such genetically engineered crops, they are now planted on millions of hectares of U.S. farmland. And there are growing indications biotech trees will be next.

Three of the world's largest paper and lumber producers have formed a joint venture, called ArborGen, that hopes to be the first group to commercialize genetically modified trees. ArborGen expects to seek approval from the U.S. Department of Agriculture and other regulatory bodies for mass planting by 2005. Based in Summerville, SC, the company has access to the vast research base of its corporate parents: International Paper, Westvaco, and Fletcher Challenge Forests, plus a New Zealand-based genomics company, Genesis Research and Development.

What tree is a likely first candidate? ArborGen isn't saying. But the venture has access to several technologies for tree modification. Among them are ways to suppress genes that produce lignin, a plant component that must be chemically removed to make paper. Other technologies include ways to make trees herbicide tolerant and to minimize crossbreeding risks by controlling their ability to reproduce.

Trees headed for the market from ArborGen include genetically modified hardwoods like poplar and sweet gum, used for high-quality paper products. ArborGen also believes it can stock plantations of modified pine and eucalyptus trees, workhorse species that can be used for building products or ordinary paper pulp. "I think the first product we put out will be a very important product, not only for technical performance, but in how we are perceived," says Maud Hinchee, the newly hired chief technology officer at ArborGen. "We want to make sure that when we launch a product, it will be perceived by the public as being safe and beneficial."