A process for the production and maintenance of pluripotent and/or totipotent progenitor cereal cells from undifferentiated callus cells is described. Production of the progenitor cells takes place via direct organogenesis on a medium containing at least one auxin and at least one cytokinin. For example, the auxin may be 2,4-dichlorophenoxyacetic acid, indole-3-acetic acid, picloran, naphthelenacetic acid, indole-3-propionic acid, indole-3-butyric acid, phenyl acetic acid, benzofuran-3-acetic acid or phenyl butyric acid, and the cytokinin may be benzyl amino purine, benzyladenine, thidiazuron, zeatin, isopentyladenine, trans-zeatin or dimethylallyladenine. Processes for transformation of the undifferentiated callus cells and/or the progenitor cereal cells are also described. Typical cereal cells are sorghum, maize, wheat, barley, millet, rye, canola, alfalfa, triticale and rice.