A process for the production of fats or oils and their extracts containing biologically active chemical compounds from a lipid substrate, the process comprising: a) inoculation of a lipid substrate with fungally derived lipolytic enzymes; b) incubating the inoculated substrate for a period of between about 7-120 days at a temperature of between about 435.degree. C., at a humidity of between about 75-100%, and c) processing said substrate mixture to obtain a biologically active fat or oil.