REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No.232 8

Introduced by
ABONO Party-list Representative HON. ROBERT RAYMUND M. STRELLA,
Pangasinan 1* District Representative HON. ARTHUR F. CELESTE, &
Pangasinan 5" District Representative HON. RAMON N. GUICO JR.

EXPLANATORY NOTE

Philippine meat imports had reached a new record-high of 1.165 million metric tons
(MMT) according to the 2021 data of the Bureau of Animal Industry (BAI) and was primarily
driven by higher pork imports due to the spread of the African Swine Fever. Chicken imports
also had a considerable share of total meat imports in the country accounting for 28.3 percent or
130.5 million kilos, while beef (62.88 million kgs.), buffalo, (16 million kgs.) turkey (251,269
kgs.), lamb (276,265 kgs.), and duck (20,509 kgs.) accounted for the rest of the country’s total
meat purchases. Meanwhile, the National Dairy Authority stated reported that the Philippines
imports virtually all its dairy products since domestic production cannot meet the dairy

requirements of the country.

Clearly, the livestock, poultry, and dairy industries in the country is severely
underperforming even though the abovementioned are just as important to Filipinos’ food
security as rice and corn. On average, budgetary support for livestock and dairy amounts to a
meager 2% of the annual appropriations for agriculture. Such a myopic agricultural policy had,

of course, resulted to crippling effects to these industries.

Moreover, the BAI needs to be strengthened to fully pursue its mandate to “investigate,
study, and report the cause of dangerous communicable diseases and the means of prevention,
and in general, promote the development of the livestock industries...improvement of

breeds...and collection and compilation of statistics on domestic animals; and dissemination of


usefull information on all essential matters regarding domestic animals.” Unfortunately, only the
BAT’s regulatory functions are

‘As such, the BAT’s functions shall be rationalized to provide greater focus on industry
development, upgrading of forward and backward linkages, and on strengthening the value chain

through farm technologies, logistics, financing, processing, and overall capacity-building.

In view of the foregoing, the approval of this bill is earnestly soug

REP. ROBBRT RAYMU} |. ESTRELLA REP. if. CELESTE
ABONO Party-list FR ‘Pangasinan

wee N. a JR.
istrict, Pangasinan


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EENTH CONGRESS
First Regular Session

House Bill No._ 2328

ABONO Party-list Representative HON. ROBERT RAYMUND M. ESTRELLA,
Pangasinan 1* District Representative HON. ARTHUR F. CELESTE, &
Pangasinan 5" District Representative HON. RAMON N. GUICO JR.

AN ACT
TO DEVELOP, PROTECT, AND PROMOTE THE LIVESTOCK, POULTRY, AND

DAIRY INDUSTRIES AND THEIR VALUE CHAIN PROVIDING FOR THIS PURPOSE

ALIVESTOCK, POULTRY, AND DAIRY COMPETITIVENESS ENHANCEMENT
FUND, AND FOR OTHER PURPOSES

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

assembled:

TITLEL
PRELIMINARY PROVISIONS

SECTION 1. Title. — This Act shall be known as the "Livestock, Poultry, and Dairy
2 Development and Competitiveness Act of 2022”.

3 SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to promote
4 the development and enhance the competitiveness of the livestock, poultry, and dairy industries,
5 especially the backyard livestock, poultry, and dairy raisers. The end goal of which, is to
6 — increase the local production of meat, eggs, milk, and other livestock, poultry, and dairy
7 products, further improve the domestic supply of breeders, enhance the availability and
8 affordability of feeds and forage, promote local food sufficiency, food safety and quality
9 standards of livestock, poultry, and dairy products.

10 It is likewise the objective of the State to increase the income of farmers and farm

11 workers, and to alleviate rural poverty through improved productivity and competitiveness,

12 product diversification, job generation, enhanced production efficiency, and protection of the

13 _ livestock, poultry, and dairy industries from pests and diseases.


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‘Towards this end, the State shall nurture an enabling environment, establish more
responsive government policies, and support programs to develop the whole value chain of the
livestock, poultry, and dairy industries in the country. It shall improve the cost-effectiveness of
regulations on animal disease prevention and control, enforcement of food safety and quality
standards on livestock, poultry, and dairy produce and processed products, with the least
disruptive effects on trade and value chains of these industries.

The State recognizes the historic role of the private sector as the primary mover in the
various facets of the livestock, poultry, and dairy industries, including the organization of
livestock, poultry, and dairy farmers. It is therefore in the State’s interest to foster
competitiveness and shall provide the necessary incentives and support to encourage stronger
partnership and consolidation.

EC. 3. Definition of Terms. — As used in this Act, the following terms and phrases shall
mean as follows:

a) Animal disease prevention and control refers to a function that includes activities
on effective surveillance, early detection, transparency, and rapid response
mechanisms to prevent and control animal diseases;

b) Backyard raiser refers to a livestock or poultry farmer tending to at least one (1) to
twenty (20) sows or one hundred (100) piglets; one (1) to twenty (20) adult cows or
cattle; one (1) to five hundred (500) for layer; one to one thousand (1000) broiler;
combined layers and broilers of one to one thousand five hundred (1500); and one
to ninety-nine (99) for ducks and does not qualify as a commercial operator;

©) Commercial operator refers to a livestock or poultry operator which satisfies at
east one of the following conditions: (i) tending to at least 21 sows and above (ii) at
east 501 and above for layer, or 1,001 and above for broiler; 1501 heads and above
for layer and broiler combination

4) Cornrefers to yellow com which is largely utilized for animal feed in the country;
€) Department refers to the Department of Agriculture (DA);

f) Feeds refers to animal food for livestock, poultry and dairy producing animals
which includes, but not limited to, yellow corn, forages and feed wheats.

8) First Border Inspection Facility refers to a facility wherein examiners and
inspectors from the Bureau of Animal Industry (for live animals), the National
Meat Inspection Service -NMIS (for frozen meats), and the Bureau of Customs
(BOC) conduct inspection to check the quality and quantity of all arriving imports
of livestock, poultry, and dairy animals, animal products, by-products, and


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h)

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m)

veterinary drugs and products based on the submitted documents or permits of the
importer.

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, goats, hogs, deer, rabbits, turkeys and poultry, among
others. Products of hunting or fishing of wild animals shall not be considered part
of this definition;

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 breeds for at least five (5)
generations including, but not limited to, native chicken, goats, pigs, ducks, cattle
and horses;

Poultry is a collective term which refers to all domesticated avian reared in
captivity mainly for agricultural purposes, or for the production of food or other by-
products, as well as for final and intermediate consumption;

Quick Response Fund (QRF) refers to a stand-by fund for immediate government
intervention in case of any event of livestock, poultry, and dairy pest or epidemic
incident that may be deemed to have the potential to reduce the livestock, poultry,
or dairy population at the municipal level by at least two percent (2%), and for the
purpose of normalizing the living conditions of people or areas affected by such
crisis;

Value chain ~ a ‘value chain’ in agriculture identifies the set of actors and activities
that bring a basic agricultural product from production in the field to final
consumption, where at each stage, value is added to the product;

Veterinary Drugs and Products refer to any substance or device, including
biological products, applied or administered to food producing, processing (such as
livestock and poultry), companion, aquatic, laboratory, and exotic animals, whether
used for therapeutic, prophylactic, or diagnostic purposes or for modification of
physiological functions or behaviors; and


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n) Veterinary Drug and Product Establishment refers to any organization or company
involved in the manufacture, importation, repacking, labeling, advertising and/or
distribution of veterinary drugs and products.

TITLE I
ROADMAP

SEC. 4. Creation of the National Livestock Council (NLC). — There is hereby created a
National Livestock Council to be composed of the:

a) Undersecretary for the National Livestock Program, as provided under Section 6 of
this Act;

b) The Chairperson of the House Committee on Agriculture and Food;
c) The Chairperson of the Senate Committee on Agriculture and Food; and

4d) The national federation heads of the: 1) hog; 2) poultry (broiler and layer); 3) sheep
and goat; 4) dairy; and 5) rabbit industries.

The NLC (composed of eight members), shall have oversight functions over the Steering
Committee as provided for under Section 5 of this Act.

‘The NLC shall have the mandate, if the need arises, to reallocate the disbursement of the
Livestock, Poultry, and Dairy Competitiveness Enhancement Fund (LPDCEF) as provided under
Section 13 of this Act. Provided, That, the reason for such reallocation be documented in writing
and submitted to the Office of the President fifteen (15) days prior to such reallocation.

Sec. 5. Philippine Livestock, Poultry, and Dairy Value Chain Development Roadmap
(Framework). — A Steering Committee, headed by the Bureau of Animal Industry (BAI), and
composed of the National Dairy Authority (NDA), Philippine Carabao Center (PCC), National
Meat Inspection Service (NMIS), DA-National Corn Program, Department of Science and
Technology-Philippine Council for Agriculture, Aquatic and Natural Resources Research and
Development (DOST-PCAARRD), Bureau of Customs (BOC), Department of Public Works and
Highways (DPWH), Land Bank of the Philippines (LBP), Development Bank of the Philippines
(DBP), Philippine Center for Postharvest Development and Mechanization (PhilMech),
Agriculture Training Institute (ATI), International Training Center on Pig Husbandry (ITCPH),
Bureau of Agriculture and Fisheries Standards (BAFS), Technical Education and Skills
Development Authority (TESDA), Cooperative Development Authority (CDA), Department of
Trade and Industry (DT1), Philippine Statistics Authority (PSA) and other concerned government
agencies, and livestock, poultry, and dairy industries stakeholders, shall formulate a ten-year
Livestock, Poultry, and Dairy Value Chain Development Roadmap (the “Roadmap”) to be



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updated every five years. The Roadmap shall be prepared within one hundred twenty (120) days
from the effectivity of this Act.

‘The Roadmap shall be the blueprint for the development of the livestock, poultry and
dairy industries. It shall set industry visions, time-bound industry goals and targets, and identify
strategies to achieve them. The Roadmap will serve as guide in the formulation of plans,
programs and projects by all relevant livestock, poultry and dairy agencies.

The implementation of the Roadmap shall be funded through the Livestock, Poultry and
Dairy Competitiveness Enhancement Fund created under Section 12 of this Act, and shall state
the priority of animals in the livestock and poultry value chain identified under the prevailing
circumstances.

The Roadmap shall include the following, but not limited to:

a)

Establishment of First Border Inspection Facilities across the country, as provided for
under Section 12 (b) of Republic Act No. 10611, otherwise known as the Food Safety
Act of 2013.

Quarantine inspection by the BAI and NMIS personnel shall take precedence over
tariff collection of BOC personnel.

b)

Breeder Availability and Upgrading Programs. ~The BAI shall endeavor to increase
the total population of livestock and poultry in the country in terms of quantity and
quality through support programs for genetic improvement and upgrading,
establishment of more semen banks, and natural and artificial breeding stations, and
animal dispersal programs, as well as accreditation of breeding farms;

©)

Corn development programs. — The BAI, in partnership with the DA National Com
Program, shall improve support for the diversification of its use such as com silage,
and development of the local com industry;

qd)

Pasture crops and animal feeds programs. ~ The BAI shall enhance support for the
development of pasture, forage crops, fish meals, protein rich non-corn crops that can
be utilized as animal feeds such as but not limited to soybean, oil palm, coconut,
cottonseed, peanut, chickpea, cowpea, mung bean, and cassava, and animal feeds
resources and infrastructure;

Native animal programs. ~ The BAI shall strengthen support for the propagation,
processing, utilization, and development of native animals.


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Animal Health Welfare and Protection. ~ The BAI shall take the lead in the
implementation of prevention, control, containment, and eradication of animal pests
and diseases by providing veterinary health services and general livestock, poultry,
and dairy health support programs;

Enterprise Development. — The BAI shall promote the establishment of livestock,
poultry, and dairy credit facilities for backyard raisers, cooperatives, and
organizations together with financial literacy programs and "farming as business"
training programs with technical support from the Agriculture Training Institute
(ATD, Technical Education and Skills Development Authority (TESDA) and relevant
local training institutes;

Training and Extension. — In consultation with the ATI, International Training Center
for Pig Husbandry (ITCPH), TESDA-Accredited Farm Schools, state universities and
colleges (SUCs), LGUs, and other relevant institutions, the BAI shall provide support
to training extension services for backyard farmers, cooperatives and organizations on
technologies and good practice in the propagation, utilization, marketing, processing
and distribution of livestock, poultry, dairy, and native animals;

Market Promotion Programs. — The BAI shall support livestock, poultry, and dairy
auction markets, trade fairs, export initiatives, and encourage contract growing
arrangements between farmers cooperatives or organizations and institutional buyers
of livestock, poultry, and dairy produce;

Research and Development (R&D). ~ The BAI shall strengthen research collaboration
with the DOST-PCAARRD, state universities and colleges (SUCs) and other public
and private institutions research and development institutions (RDIs) for technical
support in the areas of a) breeding and genetic improvement b) reproductive
biotechniques, c) nutrition, feeds and feeding system including forage and pasture, d)
conservation and improvement of native animals, e) vaccines, biologics and
diagnostics development, food quality and safety assurance, f) disease control and
anti-microbial resistance management, g) production and management decision
support systems, h) product development and processing, and h) emerging
technologies on breeding techniques;

Food Safety and Quality Assurance, ~ The National Meat Inspection Service (NMIS)
shall support the Food and Drugs Administration (FDA) in the enforcement and
regulation of food safety and quality standards on livestock, poultry, and dairy
produce and by-products. Moreover, consistent with its mandate under RA 9296
(Meat Inspection Code of the Philippines), the NMIS shall continue to serve as the
sole national controlling authority on all matters pertaining to primary and processed
meat and meat product inspection, and hygiene.


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1) Livestock, Poultry, and Dairy Production Networks Program. — The BAL shall
formulate and implement livestock, poultry, and dairy cluster development programs
for backyard raisers’ cooperatives, organizations and/or federations in order to
encourage economies of scale, production efficiencies, bargaining power of farmers,
mutual support, and maximize the coordination and dissemination of government
interventions.

m) Livestock, Poultry, and Dairy Processing Program. ~ The BAI shall formulate
programs that will enhance the value-addition and value-adding opportunities of the
processing of livestock and poultry meat, and dairy milk.

Finally, the DA-National Cor Program shall also update its com roadmap within one
hundred twenty (120) days from effectivity of this Act.

TITLE Hl
RATIONALIZATION OF LIVESTOCK, POULTRY AND DAIRY SUPPORT AGENCIES

Chapter 1
Program Management Office and Oversight

SEC. 6. Secretariat and Oversight. — The Undersecretary for the National Livestock
Program (NLP) shall supervise and direct the implementation of the Roadmap and all the
programs under it, and shall regularly report to the Secretary of Agriculture. For this purpose,
there is hereby created a Project Management Office (PMO), headed by the Undersecretary for
the NLP, which shall act as the secretariat and support staff to the Steering Committee.

The Steering Committee shall prepare periodic and annual assessments on. its
accomplishments in accordance with their responsibilities under this Act. Such reports shall be
compiled and maintained by the PMO.

The National Livestock Council (NLC) shall be furnished with such reports. It shall also
conduct a periodic review of the Livestock, Poultry, and Dairy Competitiveness Enhancement
Fund.

Chapter 2
Developmental Support Agencies for Livestock, Poultry and Dairy Industries

SEC. 7. Rationalization of Developmental Functions of the Livestock and Poultry
Support Agencies. - The Bureau of Animal Industry (BAD), the Philippine Carabao Center
(PCC) and the National Dairy Authority (NDA), shall be restructured, strengthened and
empowered to support the objectives of this Act, and shall be under the supervision and direction
of the Undersecretary for the National Livestock Program.


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In addition to the present mandates of BAI, it shall take the lead in implementing the
National Livestock Program with the following main goals and functions:

a)

b)

©)

Promote the competitive development of the livestock, poultry, and dairy industries
and its various subgroups as means of attaining food security and combating rural
poverty;

Formulate and execute the developmental programs in the Roadmap to ensure
competitiveness and development of the livestock, poultry, and dairy industries;

Develop, maintain, and access data or technologies to provide timely, accurate, and
responsive information to the DA, livestock, poultry, and dairy farmers, cooperatives
and organizations, and other players in the value chain of the livestock, poultry, and
dairy sector.

Further, it shall supervise the following Services, namely:

a)

b)

°)

Ruminants Service (RS) — It shall provide developmental support, extension
services, research, and technical assistance programs to backyard farmers of cattle,
carabaos, buffaloes, goats, and sheep for meat and dairy production, and processing
as well as for draft animal purposes. Subject to further rationalization, the RS shall
absorb the mandates, functions, and personnel of National Beef Cattle Research and
Development Center and National Small Ruminants Research and Development
Center of BAI

Non-Ruminants Service (NRS) ~ It shall provide developmental support, extension
services, research, and technical assistance programs to backyard raisers of hogs,
poultry and egg, ducks, geese, turkey, quails and other birds, and all other livestock
production including, but not limited to, horses, rabbits, and beehive farming. The
NRS shall absorb the National Swine and Poultry Research and Development
Center, subject to further rationalization.

Dairy Development Service (DDS) ~ There is hereby created a Dairy Development
Service which shall oversee and provide support services to the Philippine Carabao
Center (PCC) and National Dairy Authority (NDA).

The DDS, in coordination with PCC and NDA, shall endeavor to increase and
improve upon dairy production and livelihood programs in partnership with
stakeholders, including cooperatives, state colleges and universities, especially in
dairy cow and buffalo breeding, propagation of dairy animals and milk production
technologies, pasteurization, and initial processing of raw milk. The DDS shall also
coordinate the implementation of a national milk feeding program in partnership


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d)

°)

8)

h)

with the Department of Education (DepEd) and/or the Department of Social Welfare
and Development (DSWD) and local government units.

Native Animal Development Service (NADS) ~ The Philippine Native Animal
Development Center is hereby upgraded to become the NADS, which shall be
responsible for the identification, 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 of farmers. It shall also be responsible for the
establishment of a gene pool of Philippine animals as well as their registration as
native animal species of the Philippines in the Food and Agriculture Organization
(FAO) and/or other international intellectual property registry bodies.

Feeds Development Service (FDS) — The Feeds Development Service is hereby
created to strengthen, in coordination with the DA-National Com Program and the
com industry players, the availability of affordable and quality animal feeds. It shall
engage the private sector, seed producers, feed millers and commercial
manufacturers, in joint ventures or direct marketing linkages with corn farmers’
cooperatives and organizations. It shall absorb the mandates, functions and personnel
of the BAI-National Feeds Resources Research and Development Center, subject to
further rationalization.

Research and Marketing Service (RMS) — It shall be responsible for studies and
proposals for livestock, poultry, dairy, and meat consumer protection, consumer
attitudes and behavior, product satisfaction, and consumer experience apart from
generating information on product quality standards and new livestock, poultry, and
dairy products. The RMS shall absorb the Livestock Research and Development
Division of BAI.

Training and Extension Service (TES) ~ It shall be responsible for organizing and
coordinating livestock, poultry, and dairy training and educational programs in
partnership with LGUs, cooperatives federations, farmer organizations, regional
offices of DA, ATI, and TESDA, in order to promote and upgrade the farmers’ skills
and practices in livestock, poultry, and dairy animal care, production, processing,
storage, handling, marketing, transport, and the overall management of livestock,
poultry, and dairy farms.

Livestock, Poultry, and Dairy Protection and Disease Control Service (LPDPDCS).
— It shall be responsible for programs, policies, surveillance, and emergency action
to protect the livestock, poultry, and dairy industries, including native animals, from
the risk of outbreak of diseases or pests. The National Veterinary Quarantine
Services Division, Animal Health and Welfare Division, and Veterinary Laboratory


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Division of BAI shall be part of this Service group and shall create programs in
accordance with the following powers and mandates:

i. Regular protection surveillance inspections, in partnership with
industry players and LGUs, and establishment of protection surveillance and
emergency communications networks, that will include farmers groups,
LGUs, the police and military, and other stakeholders;

ii, Pest and disease emergency response by way of developing protocols and
responses upon declaration of any livestock, poultry, or dairy pest and
epidemic disease incident, including regulation of movement of persons,
conveyances, and plant material in affected areas, powers to deputize
police, military, and local government to control pest outbreaks, and
disposal of affected livestock, poultry, or dairy resources and assets; and

iii.Conducting scientific research and technology advancement programs on
livestock protection by partnering with SUCs, DOST-PCAARRD, private

sector laboratories, and international centers for disease control.

Furthermore, the mandates and functions of the PCC and the NDA are hereby
rationalized to include the following: improvement of livestock productivity, establishment of
dairy infrastructure to include milking, cooling, pasteurization, processing and storage facilities,
machineries or equipment; development of pasture lands, technology in feeds and fodder;
advancement of veterinary support; contingency planning for animal care and feeds availability
during natural calamities and drought conditions; imparting technological researches to the
dairy industry stakeholders; and most importantly, development of projects to increase the
country’s dairy production.

In addition to their existing priorities, PCC and NDA shall develop holistic programs
that addresses the needs of farmers, cooperatives and organizations in different aspects of dairy
farm management, like breeding, raising dairy livestock, milk production, milk processing,
business development and marketing, among others. They shall empower farmers, cooperatives
and organizations to increase production.

PCC and NDA are likewise mandated to institute a program on distribution of dairy
animals to qualified farmers for breeding with close monitoring on the increase in population of
reproduced animals. The program shall put in place a system of accountability of beneficiaries
that will ensure the success of the program. Funding for these additional mandates shall be as
specified in Title IV, Chapter 1, Sec. 13(a)

PCC and NDA shall establish incremental annual targets in the number of dairy animals
and volume of milk production.


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Chapter 3
Management Information System

SEC. 8. Livestock, Poultry, and Dairy Management Information System (LPDMIS).
The LPDMIS shall be the repository of all information relevant to livestock, poultry, and dairy

industries.

It shall endeavor to provide timely, accurate and responsive information related to

livestock, poultry, and dairy (LPD) industries, which shall include, but not limited to, the
following data down to the municipal level:

a)
)
°)
4)

©)

8)
h)

LPD supply (LPD inventory, production data, exports, and imports, among others),
and demand data;

Crop and non-crop animal feed inputs data (production, prices, imports, and exports)
Animal feed data (inventory and prices);

Price and price trends (include farm-gate, wholesale, and retail prices of LPD and
com);

Research information and technology generated from research institutions involved
in LPD;

Information on pest, diseases, and epidemics to ensure food safety and animal health
protection;

International, national, regional, and provincial market forecast;

Support extension providers’ relevant information; and

Data relating to programs of the BAI, PCC, NDA and NMIS (importation of breeds,
artificial insemination, natural breeding, buy-back programs, among other
information).

The LPDMIS shall be linked to the BAI, PCC, NDA and PSA database and website for
easy access of users to data on livestock, poultry, and dairy information, It shall be implemented
within one hundred twenty (120) days from effectivity of this Act.

Chapter 4
Regulatory Agency for Livestock, Poultry and Dairy Industries

SEC. 9. Rationalization of Regulatory Functions of the National Meat Inspection
Service (NMIS). ~ The NMIS shall be restructured, strengthened and empowered to support the
objectives of this Act, and shall be under the supervision and direction of the Undersecretary for
the National Livestock Program. Without prejudice to its original mandates, and in coordination
with the concerned government agencies and bureaus, it shall have the following principal goals
and functions:


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a)

To undertake regulatory and monitoring services in order to ensure the quality

standards of production and processing, and food safety of primary and processed
livestock, and poultry produce;

b)

°°)

To formulate and execute inspection, exportation and importation related regulatory
programs in the Livestock, Poultry, and Dairy Value Chain Development Roadmap;
and

To pursue a risk-based and evidence-supported regulatory approach in enforcing
food safety and protecting animal health in a manner that is least disruptive to the
development of the livestock, poultry, and dairy sectors.

The NMIS shall harmonize its efforts together with the BOC, towards the implementation
of the National Single Window as a reliable institutional platform for interagency collaboration.

The NMIS, in addition to its established regulatory services, shall have the following
Service groups:

a)

b)

Livestock, Poultry, Dairy, and Veterinary Drugs and Products Exportation and
Importation Regulation Service (LPDVDPEIRS) - The LPDVDPIRS, together with
the Bureau of Customs (BOC), shall develop strategies and measures to deal with
livestock-, poultry-, and dairy-related imports to prevent and minimize health and
environmental risks. It shall regulate the importation of animals, animal by-products
and produce, veterinary drugs and products, and other related animal health products
and devices, to ensure efficient supply, food safety, and minimize environmental
risk. In view of this, LPDVDPIRS shall have the sole authority to issue Sanitary and
Phyto-Sanitary Import Clearance (SPSIC) for the aforementioned products and
commodities, and to conduct inspection and monitoring at the first border facilities.

Livestock and Poultry Inspection Service (LPIS) ~The LPIS shall be the controlling
authority in the enforcement of all policies, regulations, guidelines, and standards,
including exportation process, pertaining to primary and processed meat products,
meat processing, handling, safety, quality, hygiene, and sanitation, including
assisting the Bureau of Agriculture and Fisheries Standards (BAFS) in the
formulation of safety and quality standards for meat produce. Through its Regional
Operation Centers, in coordination with local government units, it shall also have the
powers to: inspect meat establishments engaged in slaughter, processing, and
domestic meat trade; registration of meat produce inspectors, meat handlers and
meat brokers, meat products processing establishments; and accredit facilities,
conveyances and service providers for Hazard Analysis Critical Control Point
Program (HACCP) audit as well as oversight of compliance to hygiene and
sanitation standards.


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©) Animal Feeds, Veterinary Drugs and Biologics Control Service (AFVDBCS). —
AFVDBCS shall be the sole regulatory office over local animal feeds, veterinary
drugs and products, and other related animal health products and devices intended
solely for animal use including the licensing and monitoring of veterinary drugs and
products establishments.

SEC. 10. Streamlining the Regulations of Veterinary Drugs and Products. Consistent
with the policies of this Act, RA 11032 (Ease of Doing Business and Efficient Government
Service Delivery Act of 2018), and the principle of good governance and efficient and effective
regulation, the NMIS through its Animal Feeds, Veterinary Drugs and Biologics Control Service
(AFVDBCS) shall become the sole regulatory agency over veterinary drugs and products, and
other related animal health products and devices, including the licensing and monitoring of
veterinary drugs and products establishments. All regulatory processes for veterinary drugs and
products, and other animal health products and devices being handled by other agencies, such as
the Food and Drug Administration (FDA), shall be transitioned to the AFVDBCS within ninety
(90) days following the effectivity of this Act.

However, jurisdiction over the exportation and importation of veterinary drugs and
products, and other health products and devices intended solely for livestock, poultry, dairy
animal use shall pertain to NMIS - LPDFVDPEIRS.

SEC. 11. Authority in Livestock, Poultry, and Dairy Pest and Diseases-related
Emergencies. ~ Through LPDPDCS, the BAI is hereby designated as the overall coordinating
government body in the event of any livestock, poultry, and dairy pest or epidemic incident that
may be deemed to have the potential to reduce the livestock, poultry, or dairy population at the
municipal level by at least two percent (2%). The BAI head shall have the authority to call for
the creation or activation of the Animal and Livestock Emergency Response Task Force
(ALERTF) to be composed of key officials at the regional level from the following agencies:

1. Department of Agriculture ~ Regional Office;
2. Department of Interior and Local Government (DILG) ~ Regional Office;

3. Philippine National Police (PNP) and/or Philippine Army (PA) — Regional
Command;

4. Provincial Governor, Provincial Agriculturist and Provincial Veterinarian;
5. Mayors of the affected municipalities/cities; and

6. Other science experts on the case


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The provincial, municipal or city veterinarian, as the case may be, shall be duty-bound to
immediately report any event of livestock, poultry, or dairy pest or epidemic incident to BAL. It
shall likewise alert BAI should the event or incident be deemed to have the potential to reduce
the livestock, poultry, or dairy population at the municipal level by at least two percent (2%).

TITLE IV
FUND

Chapter 1
Livestock, Poultry and Dairy Competitiveness Enhancement Fund

SEC. 12. Creation of the Livestock, Poultry, and Dairy, Competitiveness Enhancement
Fund. — There is hereby created a Livestock, Poultry, and Dairy Competitiveness Enhancement
Fund, herein referred to as the ‘LPDCEF’.

‘The LPDCEF shall consist of an annual appropriation of seven billion and eight hundred
million pesos (P7,800,000,000.00) sourced from tariff collections on imported livestock, poultry
and dairy for the next six (6) years following the approval of this Act.

Livestock Imports includes imported products under the following HS headings or AHTN
Codes, and Descriptions:

i. 01.01 - Live horses, asses, mules and hinnies.
ii, 01.02 - Live bovine animals.
iii, 01.03 - Live swine.
iv. 01.04 - Live sheep and goats
v. 0106.13.00 - Other live animals - - Rabbits and hares
vi. 0106.41.00 - Other live animals - - Bees
vii, 02.01 - Meat of bovine animals, fresh or chilled.
viii, 02.02 - Meat of bovine animals, frozen.
ix. 02.03 - Meat of swine, fresh, chilled or frozen.
x. 02.04 - Meat of sheep or goat, fresh, chilled or frozen.

xi. 02.05 - Meat of horses, asses, mules or hinnies, fresh, chilled or frozen.


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xii.

xiii.

xv.

xvii.

xviii.

02.06 - Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules
or hinnies, fresh, chilled or frozen.

02.08 - Other meat and edible meat offal, fresh, chilled or frozen.

0209.10.00 - Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, fresh, chilled, frozen, salted, in brine, dried or smoked - - Of Pigs

02.10 - Meat and edible meat offal, salted, in brine, dried or smoked; edible flours
and meals of meat or meat offal.

04.09 - Natural Honey

04.10.00.90 - Edible products of animal origin, not elsewhere specified or
included - - Other

05.02 - Pigs’, hogs’, boars’ bristles and hair; badger hair and other brush making
hair; waste of such bristle or hair.

05.04 - Guts, bladders and stomachs of animals (other than fish), whole and
pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked.

05.06 - Bones and horn-cores, unworked, defatted, simply prepared (but not cut to
shape), treated with acid or degelatinised; powder and waste of these products.

05.07 - Ivory, tortoise-shell, whalebone and whalebone hair, horns, antlers,
hooves, nails, claws and beaks, unworked or simply prepared but not cut to shape;
powder and waste of these products.

Pouliry Imports includes imported products under the following HS headings or AHTN
Codes, and Descriptions:

iii.

01.05 - Live poultry, that is to say, fowls of the species Gallus domesticus, ducks,
geese, turkeys and guinea fowls.

02.07 - Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or
frozen.

0209.90.00 - Pig fat, free of lean meat, and poultry fat, not rendered or otherwise
extracted, fresh, chilled, frozen, salted, in brine, dried or smoked - - Other

0210.99.10 - Meat and edible meat offal, salted, in brine, dried or smoked; edible
flours and meals of meat or meat offal - -Freeze dried chicken dice


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vi.

vii.

04.07 - Birds’ eggs, in shell, fresh, preserved or cooked

04.08 - Birds’ eggs, not in shell, and egg yolks, fresh, dried, cooked by steaming
or by boiling in water, moulded, frozen or otherwise preserved, whether or not
containing added sugar or other sweetening matter.

0410.00.10 - Edible products of animal origin, not elsewhere specified or included
- - Birds’ nest

Dairy Imports includes imported products under the following HS headings or AHTN
Codes, and Descriptions:

i.

iii.

v.

vi.

04.01 - Milk and cream, not concentrated nor containing added sugar or other
sweetening matter.

04.02 - Milk and cream, concentrated or containing added sugar or other
sweetening matter.

04.03 - Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or
acidified milk and cream, whether or not concentrated or containing added sugar
or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.

04.04 - Whey, whether or not concentrated or containing added sugar or other
sweetening matter; products consisting of natural milk constituents, whether or
not containing added sugar or other sweetening matter, not elsewhere specified or
included.

04.05 - Butter and other fats and oils derived from milk; dairy spreads.

04.06 - Cheese and curd.

Tariff collections shall be automatically credited to a special account in the general fund
of the national treasury which shall be in place within ninety (90) days upon the effectivity of
this Act. Provided, that if the tariff collection from the livestock, poultry and dairy importation
exceeds seven billion and eight hundred million pesos (P7,800,000,000.00) in any given year
within the next six (6) years following the effectivity of this Act, the excess tariff revenue shall
be earmarked by Congress and added to the LPDCEF included in the General Appropriations
‘Act (GAA) of the following year.

Provided, further, that allocation and utilization of the LPDCEF shall be subject to the
following guidelines:


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a) The Secretary of the DA shall be accountable and responsible for the management
and utilization of the said fund in coordination with other government agencies
concerned;

b) The amount allocated shall be released directly to the implementing agencies as
provided for in this Act based on the objectives and plans of the Livestock, Poultry,
and Dairy Value Chain Development Roadmap, created in Section 5 of this Act.
Provided, that the unutilized portion of the LPDCEF allocated to the implementing
agencies shall not revert to the general fund but shall continue to be used for the
purpose for which it was set aside. Fund releases charged against the said funds shall
not be subject to any ceiling by the DBM; and

©)

‘Any program undertaken in accordance with this Act shall only be deemed
complementary and supplementary to, and shall not be a replacement of any existing
programs for farmers already implemented by the DA and other agencies concerned.

SEC. 13. Allocation and Disbursement of the Livestock, Poultry, and Dairy

Competitiveness Enhancement Funds. ~ Subject to the usual accounting and auditing rules and
regulations, the LPDCEF shall be allocated and disbursed, as follows:

a. Twenty-five percent (25%) of the fund shall be used for repopulation, breeding,
genetic reproduction of animals, stock infusion, and establishment of semen banks,
breeding centers and facilities. The fund shall be distributed as follows: twenty
percent (20%) to BAI and five percent (5%) to be distributed equally to PCC and
NDA for dairy development in accordance with their additional mandates set forth in
Sec. 6 of this Act, in addition to their existing budget allocations;

b. Twenty percent (20%) for the first three years, shall be released to NMIS for the
creation in strategic locations and improvement of first border inspection, in
coordination with the DPWH and BOC;

c. Fifteen percent (15%) shall be allocated to BAI for animal health and welfare, and
native animal development programs, disease control, prevention and response,
including protective surveillance, pest and disease emergency response, and conduct
of research and technology advancement programs to be distributed as follows: five
percent (5%) for BAI-LPDPDCS, five percent (5%) for BAI-AHWD, and five
percent (5%) for BAI-NADS.

‘A Quick Response Fund (QRF) in the amount of One hundred million pesos
(Php100,000,000.00) from the budget appropriated in this paragraph, shall be set
aside every year by BAI, as the lead agency in ALERTF, for immediate intervention
in any event of livestock, poultry, and dairy pest or epidemic incident that may be


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deemed to have the potential to reduce the livestock, poultry, or dairy population at
the municipal level by at least two percent (2%). Unexpended QRF for the year shall
be used for animal health, and disease control and prevention programs for the
following year in addition to the existing budget allocation.

In case the QRF for the year is exhausted, the same shall be augmented by the Quick
Response Fund of the Department, the Calamity Fund under Republic Act No. 10121
or other government sources. Local Government Units may also augment the QRF
using their local funds.

. Ten percent (10%) for the first three years, shall be released to and managed equally

by the Land Bank of the Philippines (LBP) and Development Bank of the Philippines
(DBP), made available in the form of credit facility for the improvement of breeders
and stocks through the purchase of breeders, growers, multipliers, feeds, and
genetically improved stocks, establishment of animal housing, and purchase of
livestock, poultry and dairy farm equipment, with minimal interest rates and
documentary requirements;

. Five percent (5%) of the fund shall be released to Philippine Center for Postharvest

Development and Mechanization (PhilMech) to be utilized for building or improving
shared service facilities including, but not limited to, cold chains, primary processing
facilities like ‘AAA’ certified slaughterhouses, ‘AAA’ certified poultry dressing
plants, Halal certified facilities, dairy infrastructure like milking, cooling,
pasteurization, processing and storage, and distribution of equipment for developing
pasture lands in strategic areas or provinces to serve the needs of raisers, cooperatives
or organizations;

Five percent (5%) shall be released to Cooperatives Development Authority (CDA) to
be used for organizing and clustering of backyard livestock, poultry, and dairy raisers,
into formal groups, cooperatives or organizations;

. Five percent (5%) shall be used to develop and augment food safety and animal

support extension and training, to be implemented by BAI, ATI, ITCPH and
PhilMech. It shall also be utilized for training courses to be implemented by TESDA.
‘The fund shall be distributed equally to BAI, ATI, ITCPH, PhilMech, and TESDA;

|. Five percent (5%) of the fund shall be used for the provision of insurance to qualified

livestock, poultry and dairy raisers under an extensive livestock, poultry, and dairy
insurance coverage;

Four percent (4%) shall be allocated to DOST-PCAARRD for farm school-based
and/or industry-driven research and development programs, as well as for support to


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technology transfer and commercialization programs and projects, in support of the
areas identified in Sec. 5(i);

j. Three percent (3%) shall be released to BAI to be used for planning, formulating,
updating the Roadmap, monitoring activities, and impact assessment studies. It shall
likewise be used for the establishment and operation of the Livestock, Poultry and
Dairy Management Information System (LPDMIS), to be used for information data
base on supply/inventory, price trends, forecasts, best practices, pests, diseases, and
epidemics, among others, and assessment planning; and

k. Three percent (3%) shall be released and distributed equally to DA-Agribusiness and
Marketing Assistance Service (DA-AMAS) and the Department of Trade and
Industry (DTI) to be used for marketing and trade promotion activities to benefit
livestock, poultry and dairy raisers.

SEC. 14, Beneficiaries of LPDCEF ~ The beneficiaries of the LPDCEF shall be those
backyard livestock, poultry, and dairy raisers, farm workers, and their dependents listed in the
Livestock, Poultry and Dairy Registry System (LPDRS), and livestock, poultry or dairy
cooperatives, associations, or organizations accredited by the Department.

Provided, further, preferential attention should be given to livestock, poultry, and dairy
raisers who are members of cooperatives, associations or organizations.

Within one hundred eighty (180) days from the effectivity of this Act, the Department, in
consultation with farmers’ cooperatives and organizations, and LGUs, shall validate and update
the master list of eligible beneficiaries to ensure that those listed are legitimate raisers, farmers,
farmworkers, cooperatives, associations, and organizations.

SEC. 15. Review of the Livestock, Poultry, and Dairy Competitiveness Enhancement

Fund. 1 following mandatory reviews of the LPDCEF shall be performed:

a) The Philippine Institute for Development Studies (PIDS) shall conduct impact
evaluation of the LPDCEF programs to livestock, poultry and dairy productivity on
the second (2), third (3") and sixth (6%) year of the effectivity of this Act, as
provided for in Sec. 11 @);

b) The percentage allocation of the LPDCEF will be reviewed on the third (3") year
from the effectivity of this Act for possible revisions should intervention priorities
change; and

©) Before the end of the sixth (6th) year from the effectivity of this Act, a mandatory
review shall be conducted by the NLC to determine whether the LPDCEF and its
utilization as provided for under this Act shall be continued, amended, or terminated.
The increase or decrease in farmers’ incomes shall be a primary benchmark in


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determining the effectiveness of the interventions under the program and its possible
extension;

In view of its oversight function, the NLC, at any time, may conduct an assessment of the
implementation of programs and utilization of LPDCEF directed under this Act.

TITLE V
FINAL PROVISIONS

SEC. 16. Review of Livestock, Poultry, and Related Feeds Tariff Rates. — Consistent
with the policies of this Act, the Tariff Commission shall review the most favored nation (MFN)
in-quota and out-quota tariff rates on livestock, poultry, and com imports originating from non-
Association of Southeast Asian Nation (ASEAN) World Trade Organization (WTO) member
states. Within sixty (60) days following the effectivity of this Act, the Tariff Commission shall
recommend to the NEDA Board the possible MFN in-quota and out-quota rate adjustments for
livestock, poultry, and corn imports that will ensure the competitiveness of the livestock, poultry,
and dairy sectors.

SEC. 17. Powers of the President, — Consistent with the Philippine national interest and
the objective of safeguarding Filipino livestock, poultry, dairy farmers and consumers, the
President is hereby empowered to act with full delegated authority subject to the provisions of
the Customs Modemization and Tariff Act (CMTA), in the following circumstances:

a) The President may revise or adjust existing rates of customs duties on livestock,
poultry, and dairy imports up to their respective bound rates committed by the
Philippines under the WTO agreement on agriculture and under ASEAN Trade in
Goods Agreement (ATIGA), including any necessary change in classification
applicable to their importation. Provided, that the adjustment is time-bound and that
the power herein delegated to the President shall only be exercised when Congress is
not in session: Provided, further, that any order issued by the President adjusting the
applied tariff rates shall take effect fifteen (15) days after publication;

b) In the event of any imminent or forecasted shortage, animal disease epidemic, or
such other situation requiring government intervention, the President is empowered
for a limited period and/or a specified volume, to allow the importation of livestock,
poultry, and dairy products at a lower applied tariff rate to address the situation.
Such order shall take effect immediately and can be issued even when Congress is in
session;

The power herein delegated to the President may be withdrawn or terminated by
Congress through a joint resolution.


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SEC. 18. Implementing Rules and Regulations. — Within forty-five days (45) from the
effectivity of this Act, the DA, BAI, NMIS shall, in coordination with ATI, BAFS, BOC, CDA,
DBM, DBP, DOF, DOST-PCAARRD, LBP, NDA, PCC, DPWH, DTI, ITCPH, PhilMech,
TESDA, NEDA, PSA, and other government agencies concerned, shall coordinate with
government agencies concerned formulate the rules and regulations for the proper
implementation of this Act.

SEC. 19. Separability Clause. — If any portion or provision of this Act is declared
unconstitutional or invalid, the remainder of this Act or any provisions hereof not affected shall
continue to be in force and effect.

SEC. 20. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent or contrary to the provisions of this Act is
hereby repealed or modified accordingly.

SEC. 21. Effectivity. — This Act shall take effect after fifteen (15) days following its
complete publication in the Official Gazette or a newspaper of general circulation.

Approved,