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

EIGHTEENTH CONGRESS
Second Regular Session

7208

HOUSE BILL NO.

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

EXPLANATORY NOTE

Article II, Section 21 of the 1987 Constitution declares that it is the State’s
duty to “promote comprehensive rural development.” Under Section 15 of the
same Article, it is likewise stated that the “[t]he State shall protect and promote
the right to health of the people and instill health consciousness among them.”
‘These two policies impose upon Congress the responsibility of championing the
advancement of the Philippine dairy industry, which is vital to both agricultural
growth and public health.

‘There have indeed been such efforts. In 1964, we had Republic Act No.
4041 (“An Act to Develop the Dairy Industry”), which, in Section 1, makes it the
government’s policy to “promote and encourage the development of dairy
industry so as to achieve self-sufficiency, at least, in milk and dairy products
and to improve the health and standard of living of the people.” Next, for 1989-
1993, we had the Medium-Term Development Plan for Dairy, accompanied by
the Dairy Industry Development Model (DDM), which led to the establishment of
dairy zones. So it was that in 1992, the Philippine Carabao Center (PCC) came
into being. This was followed in1995, by the National Dairy Authority (NDA).
Finally, we had the Dairy Road Map (DRM) for 2010-2016.

Yet we currently find ourselves with a dairy industry that remains crippled
by several age-old problems:! 1) shortage of dairy stocks; 2) limited industry
entrants; 3) competition with cheap imported milk powders; and 4) trained
technicians and farmers leaving the country to work in dairy farms in New
Zealand and Australia. The dairy industry is still clamoring for:? 1) improved
productivity of animals on the ground; 2) increased herds through intensive local
upgrading; 3) increased numbers of small-hold farmers generating profits from

"Angelo M, Tapia, “The Philippine Dairy Industry: Situation and Prospects,” University of the Philippines Los Barios,

available at http://dairvasia org/dmdocuments/AMT-edited pdf,
a


dairy enterprise; 4) support for the establishment of breeding farms to supply
new industry entrants with good dairy stocks; and 5) continued training of
farmer technicians.

The Commission on Audit (COA) has declared that “lack of coordination
among key agencies, lack of well-defined roles and responsibilities for the dairy
industry's stakeholders, lack of funding, operational issues, and significant
cattle and buffalo mortality rates” all “led to the non-attainment of DRM
targets.” This, according to the Philippine Institute for Development Studies
(PIDS), has resulted in us having to import practically 99% of our dairy
requirements, while our local milk sources battle issues of being compromised
or contaminated.*

At this rate, the Congress must intervene again, if we are to even close in
on the target of “increas[ing] local dairy production to cover at least 10% of the
country’s requirements by 2022.”5 This is where this Bill comes in. The State,
through this Bill, can effectively get the development of the dairy industry back
on track, and direct it towards modernization.

This Bill has five primary measures. First, the fast-tracking and close
monitoring of the implementation of dairy-related Public Investment Programs
(PIP) under the National Economic Development Agency’s (NEDA) List of 2017-
2022 Priority Programs and Projects. Second, the prioritization and boosting of
projects that are meant to improve dairy animal health, welfare, and nutrition.
Third, the identification of Model Farms, which will offer mentoring and host on-
site trainings, both for fledgling dairy farmers, and those already seeking to
expand their operations. Fourth, institutionalizing tie-ups between dairy farms
and their local government units (LGUs), especially for regular milk-supplying
programs in public schools, and for promoting/marketing dairy products as
staple/specialty goods of their locality. And fifth, revitalizing and streamlining
financial aid programs for dairy farmers.

It is for the foregoing premises that the approval of this Bill is earnestly

sought.

ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano Party-List

2 Genshen L. Espedido, "Not enough dairy animals to reach milk self sufficiency,” Business World Online, February 7,
2020, available at ridonlin -dairy-animals-to-reach-milk-self-sufficien

* Sonny N. Domingo and Ma. Divina C. Olaguera, “Review of High-Value Agriculture in the Philippines with
Comprehensive Subsectoral Foccus: Livestock Industries,” PIDS Discussion Paper No. 2017-51, p.16, available at
ht swebs.pids.gov.ph/CDN, 'S/pidedps1751

5 Jim Cornall, “Philippines looks to cut dairy imports through increased local production,” Dairy Reporter, February 12,
2018, available at http <dairyreporter.com /Article/2018/02/12/Philippines-looks-to-cut-dairy-imports-
through-increased-local-production.



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

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7208

Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos

AN ACT PROVIDING FOR A COMPREHENSIVE DEVELOPMENT PLAN FOR
THE DAIRY INDUSTRY, GEARED TOWARDS PHILIPPINE DAIRY SELF-
SUFFICIENCY

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

SECTION 1. Short Title. - This Act shall be known as the “Comprehensive
Dairy Farming Act.”

SECTION 2. Declaration of Policy. - The State recognizes its duties of
pushing for agricultural development, particularly in terms of self-sufficiency,
and promoting public health, with emphasis on better nutritional options for all.
As such, the State acknowledges the necessity to enact measures for bringing
the dairy industry’s development back on track.

SECTION 3. Coverage. - This Act shall apply to, and be implemented, in
all the provinces of the Philippines that have dairy farms of any size.

SECTION 4. Goals. - This Act focuses on the attainment of the following
goals, all going towards meeting the goal of locally producing enough dairy
products to meet at least 10% of the national demand, by 2022

(a) Faster, but more strategic, herd build-up for all three types of dairy

animals used in the Philippines—cattle, carabaos, and goats;

(b) Establishment of modernized and accessible technical, financial,

marketing/promotional, and mentorship-based support for dairy

farmers; and
(c) Improved awareness of, and intensive trainings on, dairy farming

practices that are protective of animal health, nutrition, and welfare.

SECTION 5. Fast-tracking and Monitoring the Implementation of Dairy-
related Public Investment Programs. - From among the National Economic


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Development Agency's List of 2017-2022 Priority Public Investment Programs
(PIP), for “Expanding Economic Opportunities in Agriculture, Forestry, and
Fisheries,” those that are dairy-related must be implemented with more urgency,
and closer performance monitoring, involving regular accomplishment or update
reports. The performance monitoring for the dairy-related PIP may be done per
category, with the various PIP grouped into the following clusters:

(a) Herd build-up;

(b) Training;

(c) Research and Development; and

(4) Marketing of Dairy Products and Institutionalization of Milk-feeding

Programs.

Using the feedback and analyses from each cluster’s performance
monitoring, the implementation flow of any particular PIP may be adjusted, by
the involved actors, as would be necessary for that PIP’s targets or objectives to
be realized in a timely manner.

SECTION 6. Prioritizing and Boosting Projects on Improving Dairy Animal
Health, Welfare, and Nutrition. - This Act mandates its implementing agencies,
under the leadership of the National Dairy Authority, to heavily invest in
measures meant to improve dairy animal health, welfare, and nutrition, so as to:

(a) combat the staggering rates of dairy animal mortality;

(b) promote and institutionalize humane dairy farming practices that are

respectful of animal rights;

(c) eliminate animal cruelty or abuse in the dairy industry;

(d) come up with dairy end-products that are more nutrient-rich.

SECTION 7. Model Farms. - The National Dairy Authority, with the
cooperation of the members of this Act’s implementing taskforce, shall produce
guidelines, processes, and criteria for the identification of model dairy farms all
over the nation. These model farms shall serve as:

(a) centers for on-site training for dairy farmers;

(b) hubs for partnerships and mentorships meant to build the capacities

of starting or fledgling dairy farmers; and

(c) examples for dairy farmers seeking to expand their current operations.

SECTION 8. Tie-ups between dairy farms and their local government units.
~ Local government units (LGUs) outside of Metro Manila, especially those that
already have dairy farms within their respective territories, are strongly
encouraged to institutionalize and consistently advertise the following forms of
tie-ups with their constituent dairy farmers:

(a) Milk feeding programs for public schools, with prioritization given to

primary and elementary schools;

(b) Developing, packaging, and promoting dairy products as specialty

goods of their localities; and


(c) Locating and establishing communal grazing or pasture areas for dairy
animals.

In all three forms of tie-ups, each LGU must primarily uphold the interest of its
constituent smallholder dairies.

SECTION 9. Financial aid for dairy farms. - This Act further encourages
LGUs to foster streamlined versions of financial aid programs for their
constituent dairy farmers, wherein private businesses or financial institutions
are tapped as creditors, with a dedicated office of a subject LGU stepping in as
guarantor for the debtor-farmer.

SECTION 10. Implementing Rules and Regulations. - The National Dairy
Authority (NDA), as the lead implementing agency for this Act’s provisions, shail
be responsible for drawing up the implementing rules and regulations for the
same. It shall also convene the following government bodies, to form an
implementing taskforce where all aspects of the dairy industry is properly
represented and accounted for:

(a) The Philippine Carabao Center

(b) The Philippine Council for Agriculture, Aquatic and Natural Resources

Research and Development

(0) The Livestock Development Council

(d) The Bureau of Animal Industry

(ce) The Dairy Research & Training Institute

(| The Dairy Confederation of the Philippines

(g) The Philippine Chamber of Commerce and Industry ; and

(h) The Philippine Association of Food Manufacturers

SECTION 11. Separability Clause. ~ If any provision or part of this Act is
held invalid or unconstitutional, the remaining provisions or parts unaffected
shall remain in full force and effect.

SECTION 12. Repealing Clause. - All laws, executive orders, presidential
decrees or issuances, letters of instruction, administrative orders, rules, and
regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed, amended, or modified accordingly.

SECTION 13. Effectivity Clause. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general
circulation.

Approved,