http://www.jejuweekly.com/news/articleView.html?idxno=2413

Mandarin royalties to Japan could cost Jeju farmers 1 billion won

Friday, February 24, 2012, 13:40:48
Angela Kim angelakim@jejuweekly.com

This is the first of a two-part report on the royalties certain Korean farmers are facing now, particularly Jeju citrus farmers. In the next issue of The Weekly, reporter Angela Kim will detail some suggestions experts have for farmers and explain how the government plans to minimize any negative impact. — Ed.


As of Jan. 7, 2012, all plant genera or species will be registered under plant variety protection.
This could cause Jeju mandarin farmers to pay royalties upwards of 1 billion won.
Photo by Cho Gyewon

On Jan. 7, 2002, South Korea became the 50th member of the International Union for the Protection of New Varieties of Plants (UPOV). Upon joining the union, member countries — which are bound by the Act of 1991 — are asked to register a minimum of 15 plants with UPOV and all applicable plant genera or species within 10 years.

From 1998 and the enactment of the Seed Industry Law, Korea gradually extended its application of plant variety protection. By 2009, this left six plants exempt — the strawberry, the raspberry, the mandarin (Citrus unshiu Marcow), the blueberry, the gean (Western cherry), and seaweed as per national requirements. But on Jan. 7, 2012, Korea Seed & Variety Service (KSVS) added these six to plant variety protection, as per the provisions of UPOV conventions.

Out of 50,000 farmers on Jeju, about 60 percent grow citrus. About 98 percent of all citrus crops grown here are varieties developed in Japan. Most of these crops (95 percent) are of the Citrus unshiu Marcow variety, commonly known as the mandarin, and the remaining 5 percent fall under the category of citrus hybrids like Hallabong, Redhyang, and others.

On Feb. 8, the Jeju Special Self-Governing Province Agricultural Research and Extension Services held a symposium to discuss strategies for dealing with mandarins being classed under plant variety protection.

“Since 2002, only flowers, like roses and orchids, were at the center of the royalty dispute,” said Park Young Chul, a researcher at the Citrus Breeding Center within the Jeju Special Self-Governing Province Agricultural Research and Extension Services. “In case of vegetables, there wasn’t much of a dispute, but rather, the price slightly increased.”

According to a UPOV document, the purpose of the Seed Industry Law is “to develop seed industry and to contribute to the stability of agriculture, forestry, and fishery by enacting provisions on protection of the breeder’s right, management of variety performance of major crops, seed production, certification, marketing, etc.”

UPOV lists five requirements for new plant variety protection: novelty, distinctness, uniformity, stability, and denomination.

According to the Rural Development Administration (RDA), about 50 percent of citrus farms on Jeju have trees over 30 years old, which means they are likely to be soon replaced. The RDA estimates that if 30 percent of the old trees are replaced with ones that are under plant variety protection, Jeju farmers will be required to pay royalties totaling 1 billion won (US$900,000) within the next 10 years.

However, Yang Mi Hee, a senior researcher and examiner at KSVS, stressed that the 1 billion won figure was a “pure estimate.” In 2007, for example, she said the RDA estimated Korean rose farmers would have to pay 7.4 billion won in royalties, when in fact only one-fifth of the estimate (1.5 billion won) was eventually due.

Yang said that the estimated cost not only includes royalties paid to the holder of the breeder rights, but also for the cost of new trees. “The cost could greatly vary depending on what species farmers choose [to cultivate],” she told The Weekly in an email interview.

Contrary to popular belief, no one has to pay royalties for cultivating the iconic Jeju citrus called Hallabong. Citrus hybrids, which include Hallabong and many other citrus crops that are generally harvested later than mandarins, were included in the plant variety protection list in May of 2009. All domestic seed breeders are supposed to register their products with the KSVS within one year of active distribution or development. Foreign developers are given a six-year grace period.

Among all citrus hybrids being raised on Jeju, only Kampei and Sagakashi 34 gou species were developed less than six years ago in Japan, enabling them to register and request royalties at any time. For Citrus unshiu Marcow and the five other plants mentioned above, breeders have until Jan. 6, 2013, to file the application for breeder rights.

http://www.jejuweekly.com/news/articleView.html?idxno=2451

Despite costs, seed development key to agricultural competitiveness

Researchers at the Citrus Breeding Center and Korea Seed & Variety Service address farmers' concerns

Friday, March 09, 2012, 14:43:44
Angela Kim angelakim@jejuweekly.com


Photo by Cho Gyewon

This is the second of a two-part report on the royalties of certain plant varieties in Jeju. — Ed.

As of Jan. 7, 2012, all plant genera and species in Korea fall under plant variety protection, as per the provisions of the International Union for the Protection of New Varieties of Plants (UPOV) conventions.

About 60 percent of Jeju farmers cultivate the mandarin (Citrus unshiu Marcow), or citrus hybrids like Hallabong. Approximately 98 percent of citrus grown on Jeju was developed in Japan.

According to the Rural Development Administration (RDA), this could potentially cost Jeju mandarin farmers up to 1 billion won (US$900,000) in royalties within the next 10 years.

Many Jeju farmers worry about the royalties they will be facing. However, The Jeju Weekly interviewed two experts who believe that the costs will not cripple the industry.

Yang Mi Hee, a senior researcher and examiner at the Korea Seed & Variety Service (KSVS), emphasized that the goal of plant variety protection is “to increase agricultural productivity to better farmers’ lives.”

For farmers, the price of seed may increase in the short term, but in the long term, intense competition will eventually reduce costs.

“The farmers’ concerns over royalties have radically simmered down compared to that of 2002,” said Park Young Chul, a researcher at the Citrus Breeding Center within the Jeju Special Self-Governing Province Agricultural Research and Extension Services.

Currently, a mandarin tree costs about 7,000 won. Park estimates royalties to be around 10 percent of the tree cost. He believes that this is “affordable.”

Both experts strongly emphasized the importance of the plant breeding industry. Park explained it was “necessary for the Korean agricultural industry to move forward,” while Yang said, “Seed breeding is a fundamental element in agriculture.”

In developed countries, about 30 percent of breeders are private, yet in Korea about 90 percent of breeding occurs in government facilities. Upon joining UPOV in 2002, the RDA began to sponsor plant variety breeding and development. To foster the plant breeding industry, the Korean government had established the Seed Center under KSVS to provide private breeders with information, findings, and techniques.

Starting this year, the Korean government will be investing 491 billion won ($440 million) over the next 10 years into the Golden Seed Project, which also includes the mandarin. The Golden Seed Project is a government-centered seed breeding program to develop plant varieties, especially those farmers heavily rely on overseas, to increase exports. Mandarins are one of the 20 strategic items.

The provincial government is also striving to achieve two main goals: breeding, and improving the quality of currently planted varieties.

Plant breeding processes are rather complicated. On average, a mandarin tree takes about seven to 10 years from seeding to blooming. Five more years are required after flowers bloom to examine the quality of the fruit.

“That’s why Jeju, or Korea, should invest more on plant breeding now than later,” said Park.

Early last year, the Citrus Breeding Center was established by the provincial government under Jeju Special Self-Governing Province Agricultural Research & Extension Services (ARES).

The Citrus Breeding Center uses the “cuttage” technique, which utilizes cut branches as seedlings to save time. Every year, researchers go around Jeju farms looking for mandarin trees with “mutant branches.”

In 2006, Jeju ARES successfully developed sangdo josaeng after nine years. As of Feb. 2012, 12,000 seedlings of the breed were distributed to Jeju farmers free of charge.

The Citrus Breeding Center plans to register three more Citrus unshiu Marcow with KSVS by 2014.

“I wouldn’t worry about royalties,” Park said, referring to the concerns of mandarin farmers. Out of the 15 species of mandarin on Jeju, only six are left unregistered and are still in the grace period. However, those six are planted in less than 100 hectares.

“We expect the impact to be minimal,” he said.

Yang also had advice for farmers: “When one is planning to renew species grown in a farm, he or she should double-check the breeder’s rights and registration.”