Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila are 1 SEP 5

‘Twentieth Congress
First Regular Session

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RY
ey

HOUSE BILLNO._ 4233

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
ESTABLISHING A NATIONAL PROGRAM FOR POST-HARVEST, COLD CHAIN,
AND LOGISTICS INFRASTRUCTURE TO STRENGTHEN FOOD SECURITY,
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Food security is a function not only of how much the Philippines produces, but also of
how efficiently it can preserve, transport, and distribute food from farms and seas to markets
and households. The country continues to suffer high post-harvest and post-catch losses:
estimates reach 16-18 percent for rice, 20-25 percent for corn, and as high as 40 percent for
fruits, vegetables, and fish. These losses represent wasted income for farmers and fisherfolk,
higher consumer prices, and foregone nutrition for Filipino families.

The weakness lies not only in production, but in the missing middle of the food system
— the storage, cold chain, and logistics infrastructure that makes food available, accessible,
and affordable in all regions, all year round. Without a modern cold chain, highly perishable
foods such as fruits, vegetables, fish, meat, and dairy cannot travel long distances or be stored
for long durations. This undermines farmgate prices during harvest gluts and raises consumer
prices during lean months.

Anationwide food security strategy must therefore address three systemic gaps:

1. Infrastructure Deficit - The Philippines lags behind regional peers in cold storage and
refrigerated transport capacity. Many rural areas lack warchouses, silos, reefer vans, or
logistics hubs. This absence drives up costs and exposes food supplies to spoilage.

2. Investment Barriers — Private investment is deterred by high upfront costs, uncertain
retums, and fragmented demand. Investors face difficulties accessing long-term, low-
cost financing for cold chain and logistics projects.


3. Policy Fragmentation - Existing programs are scattered across agencies and do not
explicitly link cold chain development with food security objectives. Incentives under
the tax code and compliance opportunities under the Agri-Agra Law remain
underutilized.

This bill addresses these challenges through the creation of a National Food Security
Cold Chain and Logistics Development Program. Its objectives are to reduce post-harvest
losses, ensure smoother distribution of food, and stabilize prices of perishable commodities
critical to nutrition and national resilience.

‘The measure establishes a nationwide plan for post-harvest, cold chain, and logistics
infrastructure. It mandates coordinated action by the Department of Agriculture, the
Department of Trade and Industry, the Department of Transportation, the Board of Investments,
and the Public-Private Partnership Center. It promotes public-private partnerships (PPPs) to
accelerate investment in warehouses, silos, cold storage facilities, reefer vans, and logistics
hubs.

To unlock financing, the bill expressly anchors incentives in Title XIII of the National
Internal Revenue Code of 1997, as amended, ensuring that investments in cold chain and
logistics infrastructure can qualify for fiscal and non-fiscal incentives under the Strategic
Investment Priorities Plan. At the same time, the bill integrates cold chain projects into the
credit allocation framework of Republic Act No. 11901, the Agriculture, Fisheries, and Rural
Development Financing Enhancement Act of 2022, allowing banks to count investments in
accredited projects as part of their Agri-Agra compliance. Together, these provisions create a
dual pipeline of fiscal incentives and credit flows to support nationwide cold chain
development.

Local government units are also encouraged to integrate cold chain and logistics into
their agricultural and food security investment plans, By mobilizing local participation, the
Program ensures last-mile connectivity and inclusive access to food security infrastructure.

The expected outcomes are clear and measurable:

+ A reduction in post-harvest losses for staples and perishables, lowering costs for
consumers while improving farmgate prices.

+ Greater resilience to food security shocks, with stable supplies even during climate
events or global disruptions.

«Improved nutrition security, with fruits, vegetables, meat, and fish reaching more
households at better quality.

«Enhanced competitiveness of Philippine agricultural exports through compliance with
international cold chain standards.

In sum, the Food Security Cold Chain and Logistics Development Act closes a
structural gap in the Philippine food system. By reducing waste and unlocking investment, it


turns more of what we produce into actual food on the table. It is a measure that protects
farmers, supports industry, empowers consumers, and fortifies national resilience.

The immediate passage of this bill is earnestly sought.

Ra} JRIAN SALCEDA


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

Twentieth Congress
First Regular Session

HOUSE BILL NO. 423 3

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
ESTABLISHING A NATIONAL PROGRAM FOR POST-HARVEST, COLD CHAIN,
AND LOGISTICS INFRASTRUCTURE TO STRENGTHEN FOOD SECURITY,
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 “Food Security Cold Chain
and Logistics Development Act.”

SEC. 2. Declaration of Policy. It is the policy of the State to ensure food security by
reducing post-harvest losses, strengthening cold chain systems, and promoting efficient
logistics from farm to market. The State shall encourage public and private investment in post-
harvest, cold chain, and logistics infrastructure in order to make safe and nutritious food more
accessible and affordable.

SEC. 3. National Food Security Cold Chain and Logistics Development Program.
‘There is hereby established a National Food Security Cold Chain and Logistics Development
Program under the Department of Agriculture, in coordination with the Department of Trade
and Industry, the Department of Transportation, the Board of Investments, and the Public
Private Partnership Center.

“The Program shall:

(a) Formulate and implement a nationwide plan for post-harvest, cold chain, and
logistics infrastructure;

(b) Identify priority investment areas, including rural storage facilities, silos, cold
storage warehouses, reefer vans, and logistics hubs;


(c) Integrate cold chain development into national food security, nutrition, and climate
resilience strategies; and

(d) Establish monitoring and evaluation mechanisms for post-harvest loss reduction.

SEC. 4. Public-Private Partnerships. The Program shall promote public-private
partnerships for the financing, construction, and operation of cold chain and logistics facilities.
The Public-Private Partnership Center shall extend technical assistance for project
development.

SEC. 5. Incentives and Financing Support.

(a) Investments in cold chain and logistics infrastructure shall be entitled to fiscal and
non-fiscal incentives under Title XIII of the National Intermal Revenue Code of
1997, as amended, subject to the strategic investment priorities plan.

(b) Banks and financial institutions may recognize lending to, or investments in,
accredited cold chain and logistics projects as compliance with the mandatory credit
allocation requirement under Republic Act No. 11901, otherwise known as the
Agriculture, Fisheries, and Rural Development Financing Enhancement Act of
2022, and its implementing rules and regulations.

(c) Government financial institutions, including the Land Bank of the Philippines and
the Development Bank of the Philippines, shall establish concessional credit
facilities to support such projects.

SEC. 6. Local Government Participation. Local government units are encouraged to
integrate cold chain and logistics development in their local food security and agricultural
investment plans, and may enter into public-private partnerships consistent with the Local
Government Code.

SEC. 7. Appropriations. The amount necessary for the initial implementation of this
‘Act shall be charged against the current appropriations of the Department of Agriculture and
concerned agencies. Thereafter, such sums as may be necessary shall be included in the annual
General Appropriations Act.

SEC. 8. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the Department of Agriculture, in coordination with the Department of
Trade and Industry, Department of Transportation, the Board of Investments, and the Public
Private Partnership Center, shall promulgate the implementing rules and regulations of this Act.

SEC. 9. Separability Clause. If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

SEC. 10, Repealing Clause. All laws, decrees, executive orders, and issuances
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 11. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,