The production of secondary metabolite alkaloids by epichloë endophytes of grasses is of great interest to agriculture due to the opposing effects of pasture protection against insect herbivory and concomitant toxicity to stock. Recent molecular genetic analysis, that has greatly enhanced our understanding of secondary metabolite biosynthesis, is reviewed and potential outcomes for pastoral agriculture are discussed. Keywords: endophyte, Epichloë, Neotyphodium, alkaloid, secondary metabolite, gene cluster
