DR. SATURNINA HALOS: Scientist steps out of her comfort zone to become an entrepreneur

There’s a reason why Dr. Saturnina Halos, one of the country’s best DNA experts and an eminent figure in the elite circle of local biotechnology, threw herself a few years back into a field quite alien to her - entrepreneurship. This spirited scientist who set up UP Diliman’s molecular and biotechnology department and is still chairperson of the agri-biotech committee of the Department of Agriculture, still dons her lab gown, but half of her day is now spent on overseeing Arnichem Corp. with her husband Dr. Ponciano Halos, also a respected agriculture scientist. The company is producing the biofertilizer - Vital N.

"I was frustrated. Here I was constantly talking to farmers about the benefits of biotechnology, but it was a concept that sounded so foreign to them and they would tell me to show them something that works. So, why not be a catalyst? It was easier to convince them to try something new if they can see good results immediately."

Arnichem’s primary product — Vital N fertilizer — is increasingly getting popular, both with small farmers and large corporate farms. The biofertilizer is easy to use, it is environment-friendly and substantially cheaper than most organic and inorganic fertilizers that farmers have been accustomed to using. Farmers only need 120 grams of Vital N to fertilize one hectare compared to the four 50-kilogram bags usually used to fertilize a hectare of rice field.

Halos explains that Vital N is different from organic fertilizers because the results are evident in a matter of days. The plants are robust, greener, yields are higher and subsequently, profits are bigger.

What makes Vital N distinct from other biofertilizers is the introduction of a bacterium called Azospirillum in plants which promotes extensive root development for more efficient nutrient and water uptake and increases plant tolerance to drought.

Halos says Azospirillum is already present in the roots of a plant although it is dormant until it comes in contact with water and releases growth hormones, absorbs nitrogen from the air and carries this to the plant and soluble nutrients from the soil. It also protects the plant from soil pathogens that cause diseases.

"We came up with a product that is unique. What we’ve done differently is to develop a technology to preserve the dormant microorganisms and put them to sleep until such time they are used and awakened to breed in plant roots. This works well for farmers because the potency of our biofertilizer is kept intact and we’ve come up with a method to substantially bring down the cost of preserving the active ingredient."

Commercialization of Vital N was the logical step after several successful field trials. The Halos couple risked their entire lifetime savings and their pensions to put up a modest biofertilizer production plant in Los Baños, Laguna.

"It was just something that we believed could work, lakasan lang talaga ng loob (what it takes is just to be brave), but while confident, I had a lot of realizations in getting our product commercialized and distributed."

First of all, Halos, like many of her colleagues in the academe, was perched atop a pedestal, constantly looking down and frowning at lesser mortals like businessmen.

"You know the culture of scientists is that what we are doing could revolutionize the way things are done. So I was one of them, abhorring businessmen whom we perceive as being nothing more than profit-takers. That’s until I realized that in pricing a product, the huge chunk, about 60 percent goes to marketing and distribution costs because of the geographical makeup of our target markets. My view of businessmen completely changed after that," recalls Halos.

Initially, Arnichem offered Vital N to farm-based cooperatives – another rude awakening. Most co-ops depended on collections from their members, and often, payments were deferred for long periods. For a start-up company like Arnichem, this was not good because they needed fast payments to revolve their operating costs.

"We decided to spread our risks. Instead of burdening our company with expensive marketing and distribution expenses, we left that to our distributors. We focused on production but we do constantly remind our buyers to be reasonable in pricing at the retail level."

On just their second year, Halos proudly discloses that Arnichem’s initial investment has been fully-recovered and its client base continues to increase. It is now supplying several corporate farms and even major fertilizer companies that package Vital N using their own named brands. It recently clinched a deal to supply the Vital N requirements of Secura Plant Genetics Inc., another biotech company that manufactures papain extract for export.

What is keeping Halos excited these days is the opportunity to penetrate the export market.

"Our company is discussing the possibility of shipping our products to at least three countries in Southeast Asia. We are already talking to distributors from these countries and hopefully, we could finally start exporting this year," says a fired-up Halos.

Arnichem’s rather quick and relatively smooth stride into bio-enterprise is inspiring other local scientists to also step out of their comfort zone and brave the business world.

"More than profits, it is satisfying to see a product you’ve worked so hard to develop to be really appreciated, especially by farmers. Even more rewarding is when some colleagues tell me they too are thinking of going into business. When that mindset is nurtured, you can expect our talented scientists to expand their creativeness and develop products that are innovative with multiple uses and affordable."