Dennis L. and Margaret J. Knudsen - Page 3




                                        - 3 -                                         
          She has never received any formal training in animal care or zoo            
          science.                                                                    
          Commencement of the Breeding Activity                                       
               In 1989, petitioners began breeding birds.  Petitioners did            
          not have any employment history or business experience in                   
          breeding or selling animals.2  Petitioners did not have a formal            
          business plan, nor did they prepare any economic projections for            
          their animal breeding operation.3                                           
               Dr. Knudsen became interested in breeding birds after                  
          learning that the United States had concluded treaties banning              
          the importation of tropical birds.  Because of the ban on                   
          importation, petitioners anticipated favorable market conditions            
          for tropical birds.  Petitioners hoped the bird breeding business           
          would be a source of income after Dr. Knudsen retired from his              
          medical practice.                                                           
               Before acquiring any birds for breeding, Dr. Knudsen learned           
          about an evolving practice of hand feeding parrots.  According to           
          the information he acquired, hand feeding the parrots made them             
          more marketable as pets.  Petitioners attended a bird breeding              
          seminar in California on hand feeding and raising young parrots.            


               2Dr. Knudsen testified that he had some limited experience             
          in the breeding of small birds.  The record does not reflect                
          whether Dr. Knudsen ever sold any of these birds.                           
               3Dr. Knudsen testified that he was “very interested” in bird           
          breeding, and “Whether or not it was economically feasible, * * *           
          only time would tell.”                                                      





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