The fermentation yield of antitumor anthracycline antibiotic daunomycin was found to be considerably increased by iron salts. The effect was more significaut with ferric ion than ferrous ion. When an optimum 10 mM of ferric sulfate was added to the culture, the daunomycin production was enhanced 4 folds as compared with that in the control culture without ferric sulfate. The iron effect was not observed with related anthracycline D788-1 fermentation. Recovery of intracellularly accumulated daunomycin to cultural filtrate was carried out by adding phosphoric acid to 3-fold fermentation broth to acidify to pH 1.5 and stirring 2 hours. The filtrate was then applied to HP-20 resin column, which was eluted with a linear gradient from 15 % to 50 % acetone. Daunomycin was eluted with about 30 % acetone as almost pure fractions which were free from 13-dihydrodaunomycin, a major by-product. After extraction with CHCl3, daunomycin powder which was less than 2 % in analog content was obtained with overall recovery yield of about 70 %.