Cephalosporin production by Streptomyces clavuligerus is known to be negatively regulated by carbon sources, e.g., glycerol and starch, and by phosphate at high concentrations. Formation of lysine E-aminotransferase (LAT) activity, the first enzyme of the biosynthetic pathway, was affected by a high concentration of carbon source. Whereas 3% starch more than doubled LAT activity production as compared to 1% starch, 3% glycerol repressed LAT activity formation by 20%-30%. LAT activity production was not affected by 100 mM K2HPO4. Our results thus show that the negative effects of 2% glycerol and 3% starch and 100 mM phosphate on cephalosporin production are not due to an effect on production of LAT activity. However, repression of LAT activity by 3% glycerol would be expected to play a negative role in antibiotic production.