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Provided is a method for producing mammalian insulin-secreting cells, comprising steps of (i) culturing mammalian stem cells which may be iPS cells in a first medium comprising an endoderm-inducing factor, thereby differentiating the cells into endoderm cells, and (ii) culturing the endoderm cells from (i) in a second medium comprising an endocrine-inducing factor, thereby differentiating the cells into endocrine cells; wherein the mammalian stem cells are not exposed to KGF prior to differentiation into endoderm cells.