December 6, 2024 | 12:00am
MANILA, Philippines — Last March 2024, University of the Philippines at Los Baños (UPLB) chancellor Jose Camacho Jr. granted an exclusive license to agribusiness company Agri-Specialist Inc. (ASI) to use, produce and sell the biofertilizer trademarked as “Bio-N” nationwide.
In turn, ASI – a newcomer in the biofertilizer industry – has allegedly been telling existing and potential Bio-N clients, including farmers’ cooperatives, private enterprises and national and local government agencies, to stop making, marketing or using Bio-N without ASI’s permission. To date, however, ASI has not secured a certificate of product registration for Bio-N from the Fertilizer and Pesticide Authority under the Department of Agriculture (DA).
Currently, the production and supply of Bio-N in various areas has reportedly dwindled or stopped. This is harming thousands of rice, corn and vegetable producers, who have been enjoying higher yields and substantial savings in urea fertilizer costs with this technology.
Under President Marcos’ direction, Bio-N and other biofertilizers received increased public funding in a bid to reduce the country’s dependence on imported and increasingly expensive inorganic farm inputs.For 2024, the DA has a P1.9-billion budget for the procurement of biofertilizers.
Bio-N was discovered in 1985 by Dr. Mercedes Garcia of the National Institute of Molecular Biology and Biotechnology (BIOTECH) in UPLB.Dr. Garcia came up with an inoculant – derived from bacteria found in talahib grass roots – that enables rice and other crops to use nitrogen from the air. Bio-N technology was developed at BIOTECH with financial support from the DA and the Department of Science and Technology (DOST).
In 2002, DA started the commercialization of Bio-N. DA and its regional offices and attached agencies/units (National Food Authority and Bureaus of Agricultural Research, Plant Industry, and Soils and Water Management) worked closely with BIOTECH, local governments, state universities and colleges, farmers’ cooperatives and private companies in establishing 83 mixing plants to produce and/or distribute Bio-N fertilizer to farmers under joint venture, third party and similar agreements.
In 2009, the Federation of Free Farmers (FFF) sought BIOTECH’s authorization to mass produce another BIOTECH biofertilizer product – Mykovam – for coconut farmers. Prior to this, the FFF did field trials – under BIOTECH scientists’ supervision – in several sites across the country. Test results showed that Mykovam had significantly improved the growth and yields of coconuts at significantly reduced costs. However, BIOTECH inexplicably sat on the FFF’s partnership proposal.
We were therefore greatly surprised when – in the case of ASI – the UPLB chancellor quickly issued an exclusive, long-term license to an industry newcomer for the acquisition, manufacture and marketing of Bio-N.
Considering that Bio-N was developed with the use of public funds, how can it become the sole property of UPLB or ASI? Shouldn’t the national and local governments that contributed resources be entitled to royalties, unhampered access to the technology, and a say in its disposition.
*Board chairman, Federation of Free Farmers and former Secretary of Agriculture (2001-2002).
UPLB chancellor Jose Camacho Jr. responds:
The agreement granting ASI exclusive rights to produce, market and distribute Bio-N, a biofertilizer developed at UPLB-BIOTECH, is the culmination of a careful and transparent decision-making process.
It addresses critical shortcomings in the biofertilizer market, specifically in the availability of Bio-N, which UPLB had hoped to address through the establishment of Bio-N mixing plants all over the country in partnership with the Department of Agriculture (DA) from 2004 to 2022.
However, as of 2022, only 20 percent of the DA’s 83 Bio-N mixing plants has remained operational. This limited production capacity has hindered farmers’ access to Bio-N.
Through the exclusive agreement, ASI is now positioned to produce Bio-N at scale, ensuring its availability across the country. This empowers farmers to adopt sustainable farming practices while reducing reliance on expensive chemical inputs.
By facilitating broader access to this innovative technology, the agreement helps address the challenges of inadequate biofertilizer supply and dependence on costly synthetic fertilizers like urea.
The licensing arrangement underwent rigorous scrutiny by the Fairness Opinion Board (FOB), convened by the Department of Science and Technology (DOST). This review ensured compliance with Republic Act 10055, the Philippine Technology Transfer Act of 2009. The FOB concluded that the terms of the agreement are fair, equitable, and beneficial to the public. The Intellectual Property Office of the Philippines (IPOPHIL) further reviewed the agreement to confirm adherence to national intellectual property laws, underscoring the integrity of the process.
The licensing agreement includes provisions for UPLB to conduct regular inspection of ASI’s facilities to ensure compliance with strict quality standards set by UPLB-BIOTECH. These measures protect farmers from substandard products and preserve the integrity of this publicly funded technology. Additionally, royalties and upfront payments from the agreement will be reinvested in research and development, advancing UPLB’s mission to support the agricultural sector.
Despite the exclusivity of the agreement, ASI has expressed a commitment to collaborate with existing mixing plants and stakeholders, ensuring inclusivity while maintaining product quality. This collaborative approach balances innovation with inclusiveness, allowing the benefits of the agreement to extend to various sectors of the agriculture industry.
We encourage concerned organizations to engage with UPLB for an open and constructive dialogue to better understand the rationale behind this arrangement. Such discussions will highlight its alignment with the shared goal of supporting Filipino farmers and enhancing the nation’s food security.
UPLB remains committed to innovation and public service. We will continue conducting relevant research and strengthen our technology transfer capacity that will advance Philippine agriculture.
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