‘REPRESS.

Republic of the Philippines m
HOUSE OF REPRESENTATIVES RECEIY Gite
Quezon City owe: WL

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 3135

Introduced by Representative Maria Lourdes O. Acosta-Alba

EXPLANATORY NOTE

The major focus of Department of Agriculture (DA) has always been on
rice and corn, as both are the most in demand staple food in the Philippines.
Being the principal source of income for majority of small farmers in the country,
they continue to dominate the agricultural labor force. The Philippine Statistics
Authority reported that the agriculture sector employed 11.29 million persons
and this comprised 29 percent of the national employment.

In view of the foregoing, other agricultural commodities are receiving
limited attention and developmental assistance from the government. For
decades now, the budget support for the livestock sector has been averaging
at only 2% of the yearly appropriations of DA. The report of the Philippine
Statistics Authority (PSA) showed that from 2010-2015, the Philippines
imported between US 3-4 billion dollars of livestock commodities annually.

The livestock, poultry and dairy industries collectively produce 33
percent of the food Filipinos eat. Despite this contribution, these sectors do not
get enough funds.

Except for a few large corporate livestock ventures, the DA has not
created an organized and competitive livestock industry. In particular, the
Bureau of Animal Industry (BAI) has not been focused on its developmental
support functions. Since its institutionalization in 1930 by virtue of Act No.
3639, it centers primarily on research and development and on regulation.

The proposed Livestock Industry Development Act aims to enhance the
BAI's developmental support for the livestock sector and to further strengthen
its mandate on industry development to boost the condition of livestock as one
of growth drivers in the economy. This important piece of legislation will help
the aforementioned sectors improve their income and livelihood.

First District, Bukidnon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
House Bill No. _3135

Introduced by Representative Maria Lourdes O. Acosta-Alba

AN ACT RATIONALIZING THE LIVESTOCK INDUSTRY IN ORDER To
STRENGTHEN ITS DEVELOPMENT, PROTECTION AND REGULATORY
FUNCTIONS, 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 of 2019.”

Section 2. Policy Statement. It shall be 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 livestock products, improve
the domestic supply of breeders and achieve greater self-sufficiency in food and
other livestock commodities. It is also the policy of the State to improve the
income of our labor force in the agriculture sector through improved
productivity and product diversification in the market.

Towards this end, the State aims to provide an enabling environment for the
development of government policies that are responsive to the needs of its
people, support programs of the agencies mandated with the development of
livestock sub-sectors. The State shall provide:

a. Productivity improvement programs;

b. Infrastructure and common service facility support;

c. Research and development for animal food and disease prevention;
d. Technical and extension services; and,

e. Financial assistance to farmers

‘The State gives primacy on the role of private sector as significant partners in
the various facets of the livestock industry and shall provide incentives and the
needed support to encourage these activities.

Section 3. Philippine Livestock Development Goals. This Act seeks to:


(1) To ensure the adequate supply of meat, poultry and eggs, milk, breeders,
other livestock at affordable prices;

(2)To provide production support to backyard farmers to increase farm
productivity and competitiveness;

(3) To establish livestock-based enterprises; and,

(4) To increase farmer's income and promote livestock farmers organization.

Section 4. Definition of Terms. As used in this Act:

a. Framework for Livestock Development (FLD) refers to the guide on the
formulation and implementation of plans, programs, and projects for
the propagation, utilization and development of the livestock industry,
including Philippine native animals.

b. Livestock refers to any domestic or domesticated product 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 ali 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, ostrich’ and poultry, among others.
Those products of hunting or fishing of wild animals shall be excluded
in 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, behaviour, product attributes, adapted
to the local environment and are products of selection with no infusion
of exotic breed for at least five (5) generations, including but not limited
to native chicken, goats, pigs, ducks, cattle and horses.

d. Philippine Native Animal Development Centers (PNADC) 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.

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

f, Smallholder Farmer refers to a farmer owning or cultivating three (3)
hectares or less of a farmland.

Section 5. Philippine Livestock Development Framework. BAI, in coordination
with the Department of Agriculture (DA), Department of Environment and
Natural Resources (DENR), Department of Science and Technology (DOST),
Livestock Growers’ Cooperatives and Backyard Raisers Organizations,
together with the Local Government Leagues, shall formulate a ten (10)-year
FLD. The same shall likewise provide for the following:


. 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;

. Product Support, Training, and Extension — The DA, through the
BAI, in consultation with DOST, State Universities and Colleges
(SUCs), 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 and individuals engaged in the
propagation, utilization, marketing, processing and distribution of
livestock, dairy and native animals. It shall also 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;

. Research and Development — The DA, through the BAI, and the
Bureau of Agricultural Research (BAR) shall strengthen’ research
collaborations among SUCs 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.

. 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 Service (AMAS) including provision for livestock auction
markets and price monitoring of supply and demand. The DA shall
coordinate with the Department of Trade and Industry (DTI), link-up
agri-business cooperatives and organizations directly with consumer
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 Bureau of Food and
Drugs (BEAD), 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; 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.


f. Animal Health and Welfare — The DA shall facilitate the availability
of biotechn010U techniques at a commercial scale to farmers and
livestock raisers. This shall include artificial insemination service
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.

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

Section 6. Merging of Service Groups in the Bureau of Animal Industry. The
following six (6) services are hereby established way of merging and
consolidating the 21 existing divisions in BAI and absorbing rationalizing three
other agencies, to wit:

a. Livestock and Meat Regulatory Service — The following divisions of
the BAI shall be merged with NMIS, which in turn is placed under
the supervision and authority of the BAI, to become the Livestock
Regulatory Service (LRS), together with the powers, responsibilities,
organization and personnel, assets, and functions of their offices,
units, and services.

* Animal Feeds, Veterinary Drugs and Biologics Control Division

(AFVDBD)>,
* Animal Health and Welfare Division (AHWD);

Livestock Research and Development Division (LSD)

LRS shall provide regulatory, monitoring and enforcement
services as mandated under prior laws, including Act 3101 (1923), Act
3639 (1930), RA 1071, RA 1556, PD 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 pertains
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 (LGUs), of
meat establishments engaged in slaughter, processing, and
domestic and international meat trade;

* Registration and licensing of meat inspectors, meat handlers,
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 (LIDS) — The Livestock
Research and Development Division, Marketing Development
Division, Research Development Division, National Swine and
Poultry Research and Development Center, International Training
Center for Pig Husbandry (ITCPH) of the ATI, National Beef Cattle
Research and Development Center, National Feeds Resources
Research and Development Center, National Small Ruminants
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 LIDS shall coordinate the formulation and implementation of
policies, programs, and roadmaps that will expedite and sustain the
development of the livestock and native animal sub-sectors.

c. Philippine Native Animal Development Service (PNADS) — The
Philippine Native Animal Development Center is hereby upgraded to
become the PNADS, which shall be responsible for the conservation,
propagation, and promotion of Philippine native animals, including
native pigs, poultry, ducks, deers, and horses through the use of
appropriate techn010U 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 for Mindanao respectively, to ensure
the distributed ‘implementation of native animal policies and
development programs.

d. National Dairy Development Service (NDDS) — There is hereby
created the NDDS which shall assume the functions, mandates,
personnel and assets of the Philippine Carabao Center (PCC), created
under RA 7307. The PCC shall cease to be a governmentowned 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 view of increasing milk production in the Philippines.

‘The National Dairy Authority, created under RA 7884, is hereby
abolished and its on-going programs and assets transferred to
NDDS.

e. Philippine Livestock Protection Service (PLPS) — The following units
of the BAI are hereby merged and consolidated to become the PLPS,
together with the powers, responsibilities, organization and


personnel, assets, functions of their offices, units, and services,
subject to further rationalization, to wit:

© National Veterinary Quarantine Services (NVQS);
° Philippine Animal Health Center (PAHC); and,

* 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:

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

Section 7. Authority in Livestock Pest-related Emergencies. With the PLPS as
its implementing arm, the BAI 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:

* DA — Regional Office;

© Department of the Interior and Local Government (DILG) —
Regional Office;

* Philippine National Police — Regional Command;
* Provincial Governor and/or Provincial Agriculturist

* Congressional Representative of the affected district;

* Mayors of the affected municipalities/ cities; and,


* Science Experts on the case.

Section 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 Services Offices above created,
but shall continue to be operational until such time as the Head of the Bureau
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 government.

The BAI stock farms and research centers in:
° General Tinio, Nueva Ecija;

* Tiaong, Quezon;

° Lipa, Batangas;
* Busuanga and Coron in Palawan;
© Dumarao, Capiz;

* Milagros in Masbate;

* Malaybalay, Bukidnon; and the two separate stations in

* Labangan, Zamboanga Del Sur

be transferred under the administrative supervision of the relevant
di ions of the LIDS to primarily serve the needs of small-hold farmers as the
base locations for purposes of human resource development I the livestock
sector, livestock breeding, extension work, demonstration activities as well as,
trade and promotion activities.

Section 9. Exemption from Taxes and Duties. The BAI shall be the focal office
on the upgrading of breeders and may, in behalf of the livestock, poultry and
dairy producer enterprises and cooperatives, import and shall be exempi 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.


Section 10. Appropriations. On top of the existing budgets of the relevant
agencies and units of the BAI, the amount of Php 500,000,000.00 shall be
appropriated as funds for the reorganization and restructuring, initial
operations and programs of the agency, 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 BAI. Thereafter, such
sums as may be necessary for its continued operation and maintenance shall
be include in the Annual General Appropriations Act, provided that, the budget
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 (DBM) is hereby
mandated to include annually, starting the year 2019, an initial aggregate
amount of Five Billion Pesos (Php 5,000,000,000.00) in the President's
program of expenditures for submission to Congress and allocated, as follows:

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

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

©. 10% for Research and Development, Capability Building and techn010U
transfer activities under Research and Development, Extension
Services, Human Resources Development, and Farm Support Programs

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

e. 5% for scholarship grants and Human Resource Development;

f. 30% for Regulatory Services; and,
g. 20% for infrastructure support programs.

Section 11. Implementing Rules and Regulations. Within thirty days (30) from
the date of Approval of this Act, the DA shall formulate the rules and regulations
for the proper implementation of this Act.

Section 12. Repealing Clause. All other laws, presidential decrees, executive
orders, ordinances, rules and regulations, and issuances or parts thereof
which are inconsistent with this Act, are hereby repealed or modified
accordingly.

Section 13. Separability Clause. If any provision of this Act is declared
unconstitutional, other provisions thereof which are not affected thereby shall
take effect in full force.

Section 14. Effectivity. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,