This article describes the algorithmic principles used to generate LAI, fAPAR and fCover estimates from VEGETATION observations. These biophysical variables are produced globally at 10 days temporal sampling interval under lat–lon projection at 1/112° spatial resolution. After a brief description of the VEGETATION sensors, radiometric calibration process, based on vicarious desertic targets is first presented. The cloud screening algorithm was then fine tuned using a global network of cloudiness observations. Atmospheric correction is then achieved using the SMAC code with inputs coming from meteorological values of pressure, ozone and water vapour. Aerosol optical thickness is derived from MODIS climatology assuming continental aerosol type. The Roujean BRDF model is then adjusted for red, near infrared and short wave infrared bands used to the remaining cloud free observations collected over a time window of ±15 days. Outliers due to possible cloud contamination or residual atmospheric correction are iteratively eliminated and prior information is used to get more robust estimates of the three BRDF kernel coefficients. Nadir viewing top of canopy reflectance in the three bands is input to the biophysical algorithm to compute the products at 10 days sampling interval. This algorithm is based on training neural networks over SAIL+PROPSPECT radiative transfer model simulations for each biophysical variable. Details on the way the training data base was generated and the neural network designed and calibrated are presented. Finally, theoretical performances are discussed. Validation over ground measurement data sets and inter-comparison with other similar biophysical products are presented and discussed in a companion paper. The CYCLOPES products and associated detailed documentation are available at http://postel.mediasfrance.org.