Republic of the Philippines ae
HOUSE OF REPRESENTATIVES TIME.
Quezon City \

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 7699

Introduced by Representative Maria Lourdes O. Acosta-Alba

EXPLANATORY NOTE

The major focus of Department of Agriculture (DA) has always been on rice
and corn, as both are the most in demand staple food in the Philippines.
Being the principal source of income for majority of small farmers in the
country, they continue to dominate the agricultural labor force. The
Philippine Statistics Authority! reported that the agriculture sector
employed 11.29 million persons and this comprised 29 percent of the
national employment.

In view of the foregoing, other agricultural commodities are receiving limited
attention and developmental assistance from the government. For decades
now, the budget support for the livestock sector has been averaging at only
2% of the yearly appropriations of DA. The report of the Philippine Statistics
Authority (PSA) showed that from 2010-2015, the Philippines imported
between US 3-4 billion dollars of livestock commodities annually.

The livestock, poultry and dairy industries collectively produce 33 percent of
the food Filipinos eat. Despite this contribution, these sectors do not get
enough funds.

Except for a few large corporate livestock ventures, the DA has not created
an organized and competitive livestock industry. In particular, the Bureau of
Animal Industry (BAI) has not been focused on its developmental support
functions. Since its institutionalization in 1930 by virtue of Act No. 3639, it
centers primarily on research and development and on regulation.

The proposed Livestock Industry Development Act aims to enhance the BAl’s
developmental support for the livestock sector and to further strengthen its
mandate on industry development to boost the condition of livestock as one
of growth drivers in the economy. This important piece of legislation will
help the aforementioned sectors improve their income and livelihood.

* Philippine Statistics Authority (PSA), Selected Statistics on Agriculture 2016 pp. 2

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This House Bill is a counterpart of Senate Bill No. 1758 filed by Senator
Cynthia A. Villar on March 20, 2018. Hence, its immediate approval is

earnestly sought.
abel LOURDES 0. baie.


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7699.

Introduced by Representative Maria Lourdes O. Acosta-Alba

AN ACT RATIONALIZING THE LIVESTOCK INDUSTRY IN ORDER TO
STRENGTHEN ITS DEVELOPMENT, PROTECTION AND REGULATORY
FUNCTIONS, TO PROVIDE FOR A LIVESTOCK DEVELOPMENT FUND,
AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Short Title. This Act shall be known as the “Livestock Industry
Development Act of 2018.”

Section 2. Policy Statement. It shall be the policy of the State to promote
the development and competitiveness of the livestock industry particularly
the backyard raisers in order to increase the supply of livestock products,
improve the domestic supply of breeders and achieve greater self-sufficiency
in food and other livestock commodities. It is also the policy of the State to
improve the income of our labor force in the agriculture sector through
improved productivity and product diversification in the market.

Towards this end, the State aims to provide an enabling environment for the
development of government policies that are responsive to the needs of its
people, support programs of the agencies mandated with the development of
livestock sub-sectors. The State shall provide:

Productivity improvement programs;

. Infrastructure and common service facility support;

Research and development for animal food and disease prevention;
|. Technical and extension services; and,

Financial assistance to farmers

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‘The State gives primacy on the role of private sector as significant partners in
the various facets of the livestock industry and shall provide incentives and
the needed support to encourage these activities.


Section 3. Philippine Livestock Development Goals. This Act seeks to:

(1) To ensure the adequate supply of meat, poultry and eggs, milk, breeders,
other livestock at affordable prices;

(2)To provide production support to backyard farmers to increase farm
productivity and competitiveness;

(3) To establish livestock-based enterprises; and,

(4) To increase farmer’s income and promote livestock farmers organization.

Section 4. Definition of Terms. As used in this Act:

a. Framework for Livestock Development (FLD) refers to the guide on
the formulation and implementation of plans, programs, and projects
for the propagation, utilization and development of the livestock
industry, including Philippine native animals.

b. Livestock refers to any domestic or domesticated product that is
grown, kept or raised in captivity for food or in the production of food
or other by-products, regardless of age, location, or purpose of
breeding. This includes all domestic animals that are slaughtered for
human consumption, maintained for draft animal power, and for
recreational purposes, such as but not limited to cattle, carabaos,
buffaloes, horses, sheep, goats, hogs, deer, rabbits, ostrich and
poultry, among others. Those products of hunting or fishing of wild
animals shall be excluded in this definition.

c. Native Animals refer to domesticated animals which contribute to
food production found in one geographical location that have
developed unique physical characteristics, behaviour, product
attributes, adapted to the local environment and are products of
selection with no infusion of exotic breed for at least five (5)
generations, including but not limited to native chicken, goats, pigs,
ducks, cattle and horses.

d. Philippine Native Animal Development Centers (PNADC) refers to a
network of stock and breeding farms and laboratories dedicated to the
nurturing, maintenance, and development of the country’s native
animals for food production purposes.

e. Stock Farms refers to the network of stock and breeding farms and
facilities owned and operated by the Bureau of Animal Industry (BAI)
for the purpose of demonstration of livestock farming technologies.

f. Smallholder Farmer refers to a farmer owning or cultivating three (3)
hectares or less of a farmland.


Section 5. Philippine Livestock Development Framework. BAI, in
coordination with the Department of Agriculture (DA), Department of
Environment and Natural Resources (DENR), Department of Science and
Technology (DOST), Livestock Growers’ Cooperatives and Backyard Raisers
Organizations, together with the Local Government Leagues, shall formulate
a ten (10)-year FLD. The same shall likewise provide for the following:

a. Investment Promotion and Credit Access - The DA shall develop
programs establishing links between stakeholders in the livestock
industry and Government Financial Institutions (GFls) and other
financial cooperatives. The DA, through the BAI, shall likewise
develop and implement programs that would establish reasonable
and innovative investment incentives to attract more players in the
native animal industry;

b. Product Support, Training, and Extension - The DA, through the
BAI, in consultation with DOST, State Universities and Colleges
(SUCs), Agricultural Training Institute (ATI), TESDA Accredited
Farm Schools and other relevant government agencies shall
establish programs which shall promote and provide adequate
trainings on adapting technologies to the farmers and individuals
engaged in the propagation, utilization, marketing, processing and
distribution of livestock, dairy and native animals. It shall also
afford opportunities for participation in international conventions
and workshops. The DA shall likewise make good quality breeders
readily available to farmers and farmers’ cooperatives to ensure
high yield and high profit;

c. Research and Development - The DA, through the BAI, and the
Bureau of Agricultural Research (BAR) shall strengthen research
collaborations among SUCs and other research institutions for
technical support in the areas of genetic resource improvement
programs, pasture seeds and crops for animal food and other fields
that promote the development and competitiveness of the livestock
industry, especially native animals.

d. Market Promotion Programs - The DA shall strive to strengthen its
Livestock Program and other similar programs in the promotion
and development of backyard livestock and dairy enterprise
including that of native animals through the DA ~ Agribusiness and
Marketing Assistance Service (AMAS) including provision for
livestock auction markets and price monitoring of supply and
demand. The DA shall coordinate with the Department of Trade
and Industry (DTI), link-up agri-business cooperatives and
organizations directly with consumer organizations including
export.


e. Food Safety and Quality Assurance - To ensure public health and
proper handling of livestock products, the DA, together with the
National Meat Inspection Service (NMIS) and the Bureau of Food
and Drugs (BFAD), shall establish and enforce standards of
hygiene in propagating, processing, grading, sampling, tests and
analysis, specifications, nomenclature, inspection, processing,
conservation, utilization and transportation of Philippine livestock,
dairy products and for native animals including environmental
management program for disposal and utilization of animal waste;
Infrastructure Development — The DA shall facilitate the provision
and/or instalment of needed provision for slaughter houses and
abattoirs including community hatcheries facilities, and other
facilities in the propagation, processing, utilization and
development of native animals.

f. Animal Health and Welfare - The DA shall facilitate the availability
of biotechnology techniques at a commercial scale to farmers and
livestock raisers. This shall include artificial insemination service
and the implementation of veterinary health services, livestock
feeds development centers, and biologics. Included in this shall be
the provision for surveillance, vaccination, animal movement
control and management and public awareness campaign.

g. Enterprise Development - the increase in income of livestock
farmers can be achieved through their engagement in livestock-
based livelihood enterprises. The BAI shall provide animal
dispersal, breeder loan program and dairy enterprise development
program with technical support. ATI shall make sure that the
beneficiaries shall undergo training in Farm Business School.

Section 6. Merging of Service Groups in the Bureau of Animal Industry.
The following six (6) services are hereby established way of merging and
consolidating the 21 existing divisions in BAI and absorbing rationalizing
three other agencies, to wit:

a. Livestock and Meat Regulatory Service - The following divisions of
the BAI shall be merged with NMIS, which in turn is placed under
the supervision and authority of the BAI, to become the Livestock
Regulatory Service (LRS), together with the powers, responsibilities,
organization and personnel, assets, and functions of their offices,
units, and services.

* Animal Feeds, Veterinary Drugs and Biologics Control Division
(AFVDBD);

* Animal Health and Welfare Division (AHWD);

* Livestock Research and Development Division (LSD)

LRS shall provide regulatory, monitoring and enforcement
services as mandated under prior laws, including Act 3101 (1923), Act


3639 (1930), RA 1071, RA 1556, PD 34 Section 105 (r), Administrative
Code of 1987, RA 8485, and RA 9482.

The new Service shall continue to serve as the controlling
authority on all policies, regulations, guidelines and standards
pertains to meat and meat products, meat handling, safety, quality,
hygiene, and sanitation, including:

* Establishing safety and quality standards for meat and meat
products;

* Inspection, in coordination with local government units (LGUs),
of meat establishments engaged in slaughter, processing, and
domestic and international meat trade;

* Registration and licensing of meat inspectors, meat handlers,
meat brokers, meat products processing establishments; and,

* Accreditation of facilities, conveyances, and service providers for
Hazard Analysis Critical Control Point Program (HACCP) audit
as well as compliance to hygiene and sanitation standards.

b. Livestock Industry Development Service (LIDS) - The Livestock
Research and Development Division, Marketing Development
Division, Research Development Division, National Swine and
Poultry Research and Development Center, International Training
Center for Pig Husbandry (ITCPH) of the ATI, National Beef Cattle
Research and Development Center, National Feeds Resources
Research and Development Center, National Small Ruminants
Research and Development Center shall be merged to become the
Livestock Industry Development Service, together with the powers,
responsibilities, organization and personnel, assets, and functions
of their offices, units, and services, subject to further
rationalization.

The LIDS shall coordinate the formulation and implementation of
policies, programs, and roadmaps that will expedite and sustain
the development of the livestock and native animal sub-sectors.

c. Philippine Native Animal Development Service (PNADS) - The
Philippine Native Animal Development Center is hereby upgraded
to become the PNADS, which shall be responsible for the
conservation, propagation, and promotion of Philippine native
animals, including native pigs, poultry, ducks, deers, and horses
through the use of appropriate technology as sources of meat, eggs,
and other by-products, and help increase incomes and available
food for farmers.

To promote the propagation, processing, utilization and
development of Philippine native animals, there shall be created in
each of the three major island groups at least one native animal
development center, to be known as the Philippine Native Animal

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Development Center for Luzon, Visayas, and for Mindanao
respectively, to ensure the distributed implementation of native
animal policies and development programs.

. National Dairy Development Service (NDDS) - There is hereby
created the NDDS which shall assume the functions, mandates,
personnel and assets of the Philippine Carabao Center (PCC),
created under RA 7307. The PCC shall cease to be a government-
owned and controlled corporation and transformed as the NDDS.
The NDDS shall expand its mandate of formulating, implementing
and managing carabaos to include cows and small ruminants, with
the end view of increasing milk production in the Philippines.

The National Dairy Authority, created under RA 7884, is hereby
abolished and its on-going programs and assets transferred to
NDDS.

. Philippine Livestock Protection Service (PLPS) - The following units
of the BAI are hereby merged and consolidated to become the
PLPS, together with the powers, responsibilities, organization and
personnel, assets, functions of their offices, units, and services,
subject to further rationalization, to wit:

+ National Veterinary Quarantine Services (NVQS);
* Philippine Animal Health Center (PAHC); and,
* Animal Health Division (AHD)

The PLPS shall be responsible for programs, policies, surveillance
and emergency action to protect the livestock industry from
diseases and outbreak of infestation and shall have the following
powers and functions:

1. Livestock Protection Surveillance, including regular Surveillance
Inspections in partnership with industry players and LGUs,
coordination with counterpart offices in other countries as well
as UN food agencies, and organizing the Livestock Protection
Surveillance network at the provincial levels in partnership with
LGUs, livestock producers, and other industry stakeholders;

2. Conducting Research and Development Programs through
partnering with SUCs, ATI for capability building programs,
partnering with private sector laboratories, barangay-based
farmer/stakeholder livestock protection networks, and
Provincial Agriculturists Emergency Communications Network;

3. Pest and Disease Emergency Response, by the way of developing
protocols and responses on the Declaration of livestock
infestation, regulation of movement of persons, conveyances and
plant material in affected areas, powers to deputize police and


military to control pest outbreaks, and disposal of affected
livestock resources and assets.

Section 7. Authority in Livestock Pest-related Emergencies. With the
PLPS as its implementing arm, the BAI is hereby designated as the overall
coordinating government body in the event of any livestock infestation or
epidemic. The PLPS shall have the authority to call for the creation of an
Animal and Livestock Emergency Response Task-Force (ALERT-TF) to be
composed of key officials at the regional level from the following agencies:

* DA- Regional Office;
* Department of the Interior and Local Government (DILG) -
Regional Office;

* Philippine National Police - Regional Command;

* Provincial Governor and/or Provincial Agriculturist

* Congressional Representative of the affected district;
* Mayors of the affected municipalities/cities; and,
* Science Experts on the case.

Section 8. Transfer of Supervision and Functions. All on-going programs
and functions of the merged and re-grouped divisions and centers, including
the NDA and PCC are hereby transferred to the BAI Services Offices above
created, but shall continue to be operational until such time as the Head of
the Bureau is able to implement a rationalization and reengineering program
to align their functions, programs, and activities to the objectives of this Act.
‘The affected personnel who may opt for early separation shall be entitled to
receive separation benefits equivalent to two months of salaries for every
year of service in government.

‘The BAI stock farms and research centers in:
* General Tinio, Nueva Ecija;

Tiaong, Quezon;

Lipa, Batangas;

Busuanga and Coron in Palawan;

Dumarao, Capiz;

Milagros in Masbate;

Malaybalay, Bukidnon; and the two separate stations in

Labangan, Zamboanga Del Sur

Shall be transferred under the administrative supervision of the relevant
divisions of the LIDS to primarily serve the needs of small-hold farmers as
the base locations for purposes of human resource development I the
livestock sector, livestock breeding, extension work, demonstration activities
as well as trade and promotion activities.

Section 9. Exemption from Taxes and Duties. The BAI shall be the focal

office on the upgrading of breeders and may, in behalf of the livestock,

poultry and dairy producer enterprises and cooperatives, import and shall

be exempt from the payment of customs duties and taxes on the importation
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of livestock and dairy animals, veterinary and other supplies, other farm
inputs, dairy equipment and machineries, research equipment, including its
spare parts, provided that these are certified and monitored, and accounted
for in terms of augmenting and upgrading local stocks and breeders of small
farmers, subject to the following conditions:

a. That the breeders are certified to upgrade and improve existing stocks;

b. That it shall be actually, directly and exclusively used by the producer
enterprises and cooperatives in the production of livestock and/or
manufacture of livestock by-products; and,

c. That a quarterly monitoring report shall be made over a two-year
period on the status of the imported livestock and materials.

Section 10. Appropriations. On top of the existing budgets of the relevant
agencies and units of the BAI, the amount of Php 500,000,000.00 shall be
appropriated as funds for the reorganization and restructuring, initial
operations and programs of the agency, to be set aside from the current
agriculture development funds under the Office of the Secretary. The
appropriations of agencies, divisions that have been merged, abolished or
transferred pursuant to this Act shall be turned over to BAI. Thereafter,
such sums as may be necessary for its continued operation and
maintenance shall be include in the Annual General Appropriations Act,
provided that, the budget share of the livestock sector shall not be lower
than fifteen percent (15%) of the total appropriations for the Department.

In addition, the Department of Budget and Management (DBM) is hereby
mandated to include annually, starting the year 2019, an initial aggregate
amount of Five Billion Pesos (Php 5,000,000,000.00) in the President’s
program of expenditures for submission to Congress and allocated, as
follows:

a. 15% for grants to Livestock Common Service facilities that shall serve
livestock growers within each province;

b. 15% for socialized credit under the Small Livestock Farm Support and
Modernization Programs;

c. 10% for Research and Development, Capability Building and
technology transfer activities under Research and Development,
Extension Services, Human Resources Development, and Farm

Support Programs

d. 5% for marketing and trade fair support and assistance for organized
groups of small farmers at the provincial and regional levels;

e. 5% for scholarship grants and Human Resource Development;

f. 30% for Regulatory Services; and,
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g. 20% for infrastructure support programs.

Section 11. Implementing Rules and Regulations. Within thirty days (30)
from the date of Approval of this Act, the DA shall formulate the rules and
regulations for the proper implementation of this Act.

Section 12. Repealing Clause. All other laws, presidential decrees,
executive orders, ordinances, rules and regulations, and issuances or parts
thereof which are inconsistent with this Act, are hereby repealed or modified
accordingly.

Section 13. Separability Clause. If any provision of this Act is declared
unconstitutional, other provisions thereof which are not affected thereby
shall take effect in full force.

Section 14. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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