Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

3982

House Bill No,

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Milk and dairy products are synonymous with health, not only in the Philippines, but
worldwide. The Philippine dairy industry itself is essential to the health of our nation's
economy, both directly and indirectly as an important factor to many upstream and
downstream industries, such as animal feed manufacturers and milk processors, with dairy
farms providing work for a host of different trades, from veterinarians to mechanics

For the dairy industry in the Philippines to reach its full potential, for there to be a sustainable
increase in both livestock and animal productivity, greater coordination and centralization is
necessary. This bill -- filed as a counterpart of Senate Bill No, 142 with the support of its
author, Senator Cynthia Villar -- aims to restructure and realign the government agencies
charged with the development of ruminants, by creating the Philippine Ruminants
Development Agency through the merger of the Philippine Carabao Center and the National
Dairy Authority

Zoom. # Nitan
EMMELINE Y. AGLIPAY ~ VILLAR
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

ago
House Bill No.3 282

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

AN ACT
MERGING THE PHILIPPINE CARABAO CENTER AND THE NATIONAL DAIRY
AUTHORITY INTO THE PHILIPPINE DAIRY DEVELOPMENT AGENCY TO
PROVIDE GREATER FOCUS ON THE ACCELERATED DEVELOPMENT OF THE
DAIRY INDUSTRY AND TO INCREASE PRODUCTION OF DAIRY ANIMALS IN
THE PHILIPPINES, PROVIDING FOR A RUMINANTS DEVELOPMENT FUND.
THEREFORE, AND FOR OTHER PURPOSES

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

SECTION 1. Title. This Act shall be known as the “Dairy Development Act of 2016."

SECTION 2. Declaration of Policy. Itis the declared policy of the State to promote the
development of the livestock industry in order to increase the supply of livestock and
livestock products and to attain greater self-sufficiency in food commodities from ruminants
as sources of supply of milk and dairy products

‘Towards this end, the State aims to restructure and realign the government agencies charged
with the development of ruminants, by separating the regulatory functions from the
development missions of the said agencies and merging these separate groups of functional
roles into the appropriate agency structures

The State recognizes the primary role of the private sector in research, training, production,
processing, and marketing, and shall provide incentives and the needed support to encourage
these activities in the areas of production and processing of ruminant meat and hide
production as well as dairy products.

SECTION 3. Objectives. The objectives of this Act are as follows:

a) To ensure adequate supply and growth of meat, milk and dairy, and other ruminants
products at affordable prices and to promote and provide direction for the accelerated

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development of ruminants as sources of draft animal power, meat, milk and dairy, and hide
products,

b) To give support and assistance in the production, processing and marketing activities of
ruminants and dairy products, particularly rural based small farm operators, farm families,
rural cooperatives and private corporate enterprises through the provision of necessary
support systems;

¢) To formulate the long and short-range programs calculated to achieve major self-
sufficiency, efficiency, and stability in food commodities of ruminant animal origins;

d) To formulate and establish comprehensive support programs and policy guidelines for the
development of the ruminant livestock industry in all aspects in order to make the industry
productive and profitable under sustainable environment through sound policies, programs,
research and services on animal production, post-harvest activities,

) To coordinate with sources of production financing support, and marketing assistance in
order to boost the sustainability of ruminant animal and diary producers; and

£) To coordinate, integrate, and supervise all policies and programs of all government
agencies charged with the implementation thereof,

SECTION. 4. The Philippine Dairy Development Agency. - The Philippine Carabao Center
created under RA. 7307 and the National Dairy Authority, created under RA. 7884 are hereby
merged and converted into Philippine Ruminants Development Agency (PRDA), which shall
be attached to the Department of Agriculture, and headed by an Administrator

The Agency shall be the central coordinating agency tasked to ensure the accelerated
development of the Philippine ruminant meat, hide and dairy industries, in accordance with
the policies and objectives set forth in this Act

SECTION, 5, Powers and Functions of the PRDA. The PRDA shall have the following
powers and functions:

(a) To conserve, propagate and promote the ruminant animals as sources of draft animal
power, meat, milk and dairy, and hide products;

(b) To enable the farmers, particularly smallholder farmers and CARP beneficiaries to avail
themselves of good quality ruminant stocks at reasonable prices through an organized
program of production. Breeding, training and dispersal;

(0) To undertake training programs for farmers, particularly smallholder farmers and CARP
beneficiaries, designated to transfer technology on the proper care and reproduction of the
carabao and the processing of its meat and milk;

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(d) To undertake research and development activities that lead to the improvement of the
over-all productivity of the Philippine ruminants, provided that such activities shall indicate
the potential of positive returns on the invested research funds

(c) To provide update information on varieties, prices, importation, propagation, storage,
distribution and sale of ruminants and dairy animals, semen, forage seeds, fertilizers,
veterinary supplies, dairy equipment and engineering supplies and such other inputs;

(f) To receive grants, subsidies, donations or contributions from corporations, thrusts,
foundations, associations and other sources from any private or government office, agency or
corporation in the Philippines or abroad;

(g) To establish, maintain or operate field units or offices in various parts of the country in
order to achieve the objectives of this Act;

Section 6. Transfer of Functions. All on-going programs and functions of the merged
agencies are hereby transferred to the PRDA and shall continue to be operational until such
time as the appointed PRDA Administrator is able to implement a rationalization and
reengineering program to align their functions, programs and activities to the objectives of
this Act

Any and all regulatory functions embodied in RA. 7307 and RA. 7884 are hereby transferred
to the Bureau of Animal Industry, created by Republic Act No, 3639 as amended.

SECTION 7. PDDA Advisory Board.

The PDDA shall be governed by and Advisory Board to be composed of the following,
(a) The Secretary of the Department of Agriculture as chairman;

(b) The Director of the Bureau of Animal Industry;

(c) One farmer representative each for Carabao, Cattle, Goat and Dairy producers; and
(a) The Administrator of the PRDA, as Vice Chairman

The PDDA Board shall and approve all the policies, systems, protocols and organizational re-
engineering of the Agency. It shall also affirm the development programs that will be
implemented by the Administrator.

SECTION 18, Exemption from Taxes and Duties, The Agency may, in behalf of ruminant
and dairy producer enterprises and cooperatives, import and shall be exempt from the
payment of customs duties and taxes on the importation of ruminants and dairy animals,
veterinary and other supplies, other farm inputs, dairy equipment and machineries, research

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equipment, including its spare parts, for purposes of augmenting and upgrading local stocks
and breeders, subject to the following conditions:

a) That the breeders are certified to upgrade and improve existing stocks,

) That the dairy equipment and machineries, including its spare parts, are not manufactured
domestically in sufficient quantity, of comparable quality and reasonable prices, and

c) That it shall be actually, directly and exclusively used by the ruminant producer enterprises
and cooperatives in the production or manufacture of ruminant and dairy products;

SECTION 10. Powers and Functions of the Administrator, Subject to the control and
supervision of the Advisory Board, the Administrator shall have the following powers and
functions:

a) Submit policy recommendations and proposed measures necessary to carry out the
objectives and functions of the Agency, for the consideration of the Board;

b) Recommend to the Board, for approval, an organizational structure, and plantilla of
personnel of the merged Agency, in accordance with existing laws, rules and regulations;

c) Execute, administer and implement policies and measures approved by the Board;

d) Submit to the Board, in line with the national budget cycle, an annual budget and such
supplemental budget as may be necessary for its consideration and approval;

¢) Represent the Authority in all its dealings with other persons, entities, agencies, and
institutions whether public or private, domestic or foreign, subject to the limitations and
conditions herein provided;

£) Appoint, subject to the confirmation of the Board, and discipline or remove for cause in
accordance with the civil service law, rules and regulations, the officers and personnel of the
Authority; and

g) Perform such other duties which may be assigned to him by the Board or by the Secretary
of the Department of Agriculture

SECTION 11, Implementing Rules and Regulations, Within three months from the effectivity
of this Act, the Secretary of Agriculture shall form an ad hoc Task Force to be composed of
two representatives each from the merged agencies, from the cattle producers, from carabao
producers, goat producers, and the local dairy industry to formulate the Implementing Rules
and Regulations within the ensuing period of three months, Two representatives of the
Congressional Commission on Agriculture and Fisheries Modernization shall join the
meetings of the ad hoc Task Force as observers

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SECTION 12. Appropriations. The appropriations of agencies, division, council and
corporation, merged, abolished or transferred pursuant to this Act shall be turned over to the
Agency, Thereafter, such sums as may be necessary for its continued operation and
maintenance shall be included in the annual General Appropriations Act.

SECTION 13. Repealing Clause, RA. 7307 and RA, 7884 are hereby repealed. All laws,
decrees, executive orders, rules and regulations or parts thereof which are inconsistent with
this Act are hereby repealed or modified accordingly

SECTION 14, Separability Clause. If any provision of this Act is declared unconstitutional or
invalid, other provisions thereof which are not affected thereby shall continue in full force
and effect.

SECTION 15. Lffectivity. This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or in any newspaper of general circulation

Approved,

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