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REPUBLIC OF THE PHILIPPINES fs RECEIVED
HOUSE OF REPRESENTATIVES LS pyreO0T_ 02
Quezon City postion 4 ot
SEVENTEENTH CONGRESS
‘Third Regular Session
House Bilt No. 8348

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Livestock production constitutes a very important component of the agricultural economy of
developing countries, a contribution that goes beyond direct food production to include
multipurpose uses, such as skins, fibre, fertilizer and fuel, as well as capital accumulation.
Furthermore, livestock are closely linked to the social and cultural lives of several million resource-
poor farmers for whom animal ownership ensures varying degrees of sustainable farming and
‘economic stability.

Despite this importance, however, roughly 22% of our beef/ carabeef, 9% of pork, and 11%
of poultry are still supplied by other countries. Moreover, about 95% of milk and dairy products in
the country are sourced from abroad. In total, the country imports approximately $3-4 billion dollars
of livestock commodities annually.

The Philippine livestock sector is in dire need of a boost from the national government.
Since throughout the years, rice and corn has been the primary focus of the Department of
Agriculture, the occasional and severely limited livestock dispersal and development programs have
not been sustained.

Furthermore, the Bureau of Animal Industry has not been focused on its developmental
support functions. Created in 1930, its first-line prerogative is to “investigate, study, and report the
cause of dangerous communicable diseases and the means of prevention, and in general, promote
the development of livestock industries...by improvement of breeds... and collection and
compilation of statistics on domestic animals;... dissemination of useful information on all essential
matters regarding domestic animals, but its achievements, at best, are meager.

Because of these deficiencies, there must be established a primary agency mandated to
support the development of our livestock industry.

The BAI, with the approval of this Act, shall be expected to provide stronger focus on
livestock industry development, which will help upgrade the industry’s forward and backward
linkages, and boosting conditions of players in the value chain in terms of farm technologies,
logistics, financing, processing, and overall capacity-building.

In view of the foregoing, approval of this bill is earnestly sought.

S

. Gary ¥% Alejano



Carr sHew

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8348

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
TO RESTRUCTURE AND RATIONALIZE THE LIVESTOCK INDUSTRY IN ORDER TO
STRENGTHEN ITS DEVELOPMENT, PROTECTION, AND REGULATORY
FUNCTIONS, INCLUDING THE PROMOTION OF DAIRY AND NATIVE ANIMALS
AND 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.”

SEC. 2. Declaration of Policy. —It is hereby declared 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 meat, poultry, dairy, eggs, and other livestock products, improve the
domestic supply of breeders and attain greater self-sufficiency in food and other livestock
commodities. It is likewise the policy of the State to improve the incomes of farmers and workers,
through improved productivity, product diversification, job generation, and increased efficiency of
the livestock industry.

Towards this end, the State aims to provide for enabling environment for the development of
more responsive government policies, support programs, and the agencies charged with the
development of livestock sub-sectors, by separating the regulatory functions from the development
missions, rationalizing the roles and right-sized structures. The State shall provide: (a) productivity
improvement programs; (b) infrastructure and common service facility support; (c) research and
development for animal food, disease prevention and animal health, propagation and genetic
resource development and enterprise development, among others; (d) technical and extension
services; and (e) financial assistance to small farmers.


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The State recognizes the primary role of the private sector as partners in the various facets of
the livestock industry and shall provide incentives and the needed support to encourage these

activities,

SEC. 3. Philippine Livestock Development Goals.—This Act seeks to (1) ensure the
adequate supply of meat, poultry and eggs, milk, breeders, other livestock products at affordable
prices; (2) provide production support to backyard farmers to increase farm productivity and
competitiveness; and (3) to establish livestock-based enterprises; (4) poverty alleviation and
increase farmer’s income and (5) the promotion of livestock farmers organization.

SEC. 4. Definition of Terms.—As used in this Act, the following terms and phrases shall
‘mean as follows:

a, Department shall refer to the Department of Agriculture.

b. Livestock refers to any domestic or domesticated animal 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, hogs, deer, rabbits, ostrich, and poultry,
among others. Products of hunting or fishing of wild animals shall not be considered part of 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, behavior, product
attributes, adapted to the local environment and are products of selection with no infusion of exotic
breed or at least five (5) generations, including, but not limited to native chicken, goats, pigs,
ducks, cattle, and horses.

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

¢. Philippine Native Animal Development Centers 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.

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f. Smallholder Farmer refers to a farmer owning or cultivating five (5) hectares or less of

farmland.

SEC. 5. Philippine Livestock Development Framework.—The Bureau of Animal Industry in
coordination with the Department of Agriculture (DA), Department of Science and Technology
(DOST), Department of Environment and Natural Resources (DENR), livestock growers’
cooperatives and backyard raisers’ organizations, animal healthcare practitioners, and the Local
Government Leagues, shall formulate a ten-year Framework for Livestock Development to be
validated and updated annually. Such framework shall serve as guide to the formulation and
implementation of plans, programs, and projects for the propagation, utilization, and development
of the livestock industry, including Philippine native animals, as envisioned in this Act. The
Framework 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 (GFIs) 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. Production Support, Training, and Extension—The DA, through the BAI, in
consultation with DOST, state universities, and colleges, the 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 or
individuals engaged in the propagation, utilization, marketing, processing and distribution of
livestock, dairy and native animals; and 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 state universities 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


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Service (AMAS) including the provision for livestock auction markets and price monitoring of
supply and demand. The DA shall also coordinate with the Department of Trade and Industry
(DTH), link-up agribusiness cooperatives and organizations directly with consumers’ cooperatives

and organizations including export.

¢. 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
Food and Drug and Administration (FDA), 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;

f. 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.

g. Animal Health and Welfare.—To promote animal health, welfare, and preservation, the
DA-BAI shall facilitate the availability of biotechnology techniques at a commercial scale to
farmers and livestock raisers. This shall include artificial insemination service (AI) 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

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

SEC. 6. Merging of Service Groups in the Bureau of Animal Industry.—The following six
Services are hereby established by way of merging and consolidating twenty-one (21) existing
divisions in the Bureau of Animal Industry and absorbing rationalizing three other agencies, to wit:

a. Livestock and Meat Regulatory Service.—The following divisions of the BAI shall be
merged with the National Meat Inspection Service, which in tur is placed under the supervision
and authority of the BAI, to become the Livestock Regulatory Service, together with the powers,


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responsibilities, organization, and personnel assets, and functions of their offices, units, and

services,

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

2. Animal Health and Welfare Division (AHWD)
3. Livestock Research and Development (LSD)

Livestock Regulatory Service shall provide regulatory, monitoring, and enforcement
services as mandated under prior laws, including Act 3101 (1923), Act 3639 (1930), R.A. 1071,
RA. 1556. P.D. 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 pertaining 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, of meat establishments
engaged in slaughter, processing, and domestic and international meat trade; registration and
licensing of meat inspectors, meat handlers and 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—The Livestock Research and Development
Division, Marketing Development Division, and Research Development Division, National Swine
and Poultry Research and Development Center, International Training Center for Pig Husbandry
(ITCPH) of the Agriculture Training Institute, National Beef Cattle Research and Development
Center, National Feeds Resources Research and Development Center, National Feeds Resources
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 Livestock Industry Development Service shall coordinate the formulation and
implementation of policies, programs, and roadmaps that will hasten and sustain the development
of the livestock and native animal sub-sectors.


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c. Philippine Native Animal Development Service—The Philippine Native Animal
Development Center is hereby upgraded to become the Philippine Native Animal Development
Service (PNADS), which shall be responsible for the conservation, propagation, and promotion of
Philippine native animals, including native pigs, poultry, ducks, deer, 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 Development Center for Luzon,
Visayas, and Mindanao, respectively, to ensure the distributed implementation of native animal
policies and development programs.

d. National Dairy Development Service—There is hereby created the National Dairy
Development Service (NDDS) which shall assume the functions, mandates, personnel, and assets
of the Philippine Carabao Center, created under R.A. 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 in view of increasing milk production in the Philippines

The National Dairy Authority, created under R.A. 7884, is hereby abolished and its on-
going programs, and assets transferred to the National Diary Development Service (NDDS).

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

1. National Veterinary Quarantine Services (NVQS)
2. Philippine Animal Health Center (PAHC)
3. 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


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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 way of developing protocols and
responses on the Declaration of livestock infestation, regulation of movement of persons,
conveyances, and plant materiel in affected areas, powers to deputize police and military to
control pest outbreaks, and disposal of affected livestock resources and assets.

SEC. 7. Authority in Livestock Pest-Related Emergencies.—With the PLPS as its
implementing arm, the Bureau of Animal Industry 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:

a. Department of Agriculture — Regional Office

b. Department of Interior and Local Government — Regional Office
c. Philippine National Police - Regional Command

d. Provincial Governor and/or Provincial Agriculturist

e. Congressional representative of the affected district

f. Mayors of the affected municipalities/cities

g. Science experts on the case

SEC. 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 Service offices above created, but shall continue to be operational until such


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time as the Bureau head 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 the government.

The BAI stock farms and research centers in Gen. Tinio, Nueva Ecija; Tiaong, Quezon;
Lipa, Batangas; Busuanga and Coron in Palawan; Dumarao, Capiz; Milagros, Masbate;
Malaybalay, Bukidnon; and the two separate forage centers/stations in Labangan, Zamboanga del
Sur shall be transferred under the care and administrative supervision of the relevant divisions of
the Livestock Industry Development Service to primarily serve the needs of small-hold farmers as
the base locations for purposes of human resource development in the livestock sector, livestock

breeding, extension work, demonstration activities, and trade and promotion activities.

SEC. 9. Exemption from Taxes and Duties.—The BAI shall be the focal office on the
upgrading of breeders and may, in behalf of livestock, poultry, and dairy producer enterprises and
cooperatives, import and shall be exempt from the payment of customs, duties, and taxes on the
importation 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.

SEC. 10. Appropriations. On top of the existing budgets of the relevant agencies and units
of the BAI, the amount of P500 million shall be appropriated as funds for the reorganization and
restructuring, initial operations and programs of the agencies, 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 the BAL. Thereafter, such sums as may be necessary for its continued operation and maintenance
shall be included in the annual General Appropriations Act, provided that, henceforth, the budget


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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 is hereby mandated to include
annually, starting the year 2019, an initial aggregate amount of Two billion pesos
(P2,000,000,000.00) in the President’s program of expenditures for submission to Congress and

allocated, as follows:

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

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

¢. Fifteen percent (15%) for research and development, capability building, and_ technology
transfer activities under Research and Development and Farm Support Programs;

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

e. Five percent (5%) for scholarship grants and Human Resource Development;
£, Regulatory Services (15%); and
g. Thirty percent (30%) for infrastructure support programs

SEC. 11. /mplementing Rules and Regulations.—Within thirty days (30) from the date of
approval of this Act, the Secretary of the Department of Agriculture shall convene the members of
the Livestock Development Advisory Board to formulate the rules and regulations for the proper
implementation of this Act. Such implementing rules shall, among others, provide for the
following:

a. Plans, programs, and policy recommendations and proposed measures necessary to carry
out the objectives and functions of the Bureau and the Service offices;

b. Submit, an annual budget and proposed supplemental budget as may be needed in its
initial operations, and as a consultative process for stakeholders in the formulation of Bureau’s
annual budget in line with the national budget cycle; and


. Proposed rationalization program to update the organizational structure and plantilla of
personnel of the service office, in accordance with existing laws, rules and regulations, including
the early separation benefits for those whose positions may have to be abolished.

SEC. 12. Repealing Clause—All laws, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 13. Separability Clause.—If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.

SEC. 14. Effectivity:—This Act shall take effect fifteen days after its complete publication
in at least two newspapers of general publication.

Approved,