Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

Nineteenth Congress
First Regular Session

House Bill No. 440

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
TO DEVELOP THE LIVESTOCK, POULTRY, AND DAIRY INDUSTRY
VALUE CHAIN, INCLUDING THE STRENGTHENING OF ITS DISEASE
PREVENTION, CONTROL AND REGULATORY FUNCTIONS,
AVAILABILITY OF AFFORDABLE AND QUALITY FEEDS,
PROMOTION OF DAIRY AND NATIVE ANIMALS AND TO PROVIDE
FOR A LIVESTOCK, POULTRY, DAIRY, AND RELATED FEEDS
COMPETITIVENESS FUNDS, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Along with the nation’s numerous agricultural commodities, the livestock industry has
struggled to achieve self-sufficiency. According to figures from the Philippine Statistics
‘Authority (PSA), the nation imported an average of 164,000 MT of pork, 55,000 MT of beef,
37,000 MT of carabeef, and 128,000 MT of dressed chicken. Additionally imported from other
nations include about 22% of the beeficarabeef, 9% of pork, and 11% of the poultry. 95 % of
the milk and dairy products are also imported. The country imports livestock products worth
$3 to $4 billion a year.

Given the current circumstance, the nation’s livestock industry must be strengthened.
The State shall also put focus on livestock initiatives, through the Department of Agriculture
(DA), to develop a national livestock industry that is organized and competitive. Years have
passed, but there is still no primary agency tasked with overseeing and assisting the livestock
industry.

In accordance with the Livestock, Poultry, and Dairy Value Chain Development
Roadmap, this bill establishes the Philippine Livestock and Poultry Development Authority
Advisory Board (PLPAAB) to oversee and provide policy guidance on the coordinated
implementation of the programs funded by the Livestock, Poultry, Dairy, and Related Feeds
Competitiveness Enhance Funds. The Philippine Livestock and Poultry Authority (PLPA) will
also be founded by the merger of the Bureau of Animal Industry (BAI), the Philippine Carabao
Center (PCC), and the National Dairy Authority (NDA), subject to be rationalized further.

The primary objectives and duties of the PLPA include fostering the competitive

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development of the livestock, poultry, and dairy industries’ value chains and the various
subgroups within the livestock, poultry, and dairy sector as a means of achieving food security,
enhancing global competitiveness and reducing rural poverty. It is also in charge of developing,
maintaining, and gaining access to big data or technologies able to handle massive amounts of
structured and unstructured data to provide timely, accurate, and reliable information for the
benefit and development of the industry.

This bill aims to jump-start and align the growth of the livestock industry, aid the
expansion of our economy as an important aspect of agriculture, and create jobs, particularly
in rural areas.

In view of the foregoing, the passage of this bill is eae:

RTE SALCEDA

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House Bill No. 44 0

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
TO DEVELOP THE LIVESTOCK, POULTRY, AND DAIRY INDUSTRY
VALUE CHAIN, INCLUDING THE STRENGTHENING OF ITS DISEASE
PREVENTION, CONTROL AND REGULATORY FUNCTIONS,
AVAILABILITY OF AFFORDABLE AND QUALITY FEEDS,
PROMOTION OF DAIRY AND NATIVE ANIMALS AND TO PROVIDE
FOR A LIVESTOCK, POULTRY, DAIRY, AND RELATED FEEDS
COMPETITIVENESS FUNDS, AND FOR OTHER PURPOSES

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 “Livestock Development
and Competitiveness Act.”

SEC. 2. Declaration of Policies. — It is hereby the declared policy of the State to
promote the development and competitiveness of the livestock, poultry, and dairy industries,
particularly the small-hold livestock, poultry, and dairy raisers, in order to increase the supply
of meat, eggs, milk, and other livestock, poultry, and dairy products, improve the domestic
supply of breeders, enhance the availability and affordability of feeds and forage, promote food
safety and quality standards of livestock, poultry, and dairy products, and attain greater food
security in food, livestock, poultry, and dairy commodities. It is likewise the policy of the State
to increase the income of farmers and farm workers and to alleviate rural poverty through
improved productivity and competitiveness, product diversification, job generation, enhanced
production efficiency, and protection of the livestock, poultry, and dairy industries from pests
and diseases.

Towards this end, the State shall nurture an enabling environment and establish more
responsive government policies and support programs to develop the whole value chain of the
livestock, poultry, and dairy industries in the country, and raise 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 least disruptive
effects on trade and value chains of these industries.

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The State recognizes the vital role of the private sector as partners in the various facets
of the livestock, poultry, and dairy industries, and the organization of livestock, poultry, and
dairy farmers to be more competitive and shall provide incentives and the needed support to
encourage stronger partnership and consolidation.

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

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

(0) Backyard raiser — refers to a livestock or poultry farmer tending to at least one head
of animal and does not qualify as a commercial operator;

(©) Commercial operator — refers to a livestock or poultry operator which satisfies at
least one of the following conditions: tending at least 21 heads of adult and at least zero head
of young; tending at least 41 heads of young animals; tending at least 10 heads of adult and at
least 22 heads of young; at least 500 layer, or 1,000 broiler chicken; at least 100 layers and 100
broilers if raised in combination; at least 100 birds of duck regardless of age;

(@) Corn — refers to products under the ASEAN harmonized tariff nomenclature
(AHTN) code 1005.90.90 classified under the harmonized commodity description and coding
system (HS) heading no. 10.05. Further, it refers to corn (yellow corn) which is largely utilized
for animal feed in the country;

(e) Feed wheat — refers to products with AHTN code 1001.99.99 under HS no. 10.01.
It is a main substitute to corn used for feeds;

(f) Department — shall refer to the Department of Agriculture (DA):

(g) Feeds — is any single or multiple materials, whether processed, semi-processed or
raw, which is intended to be fed directly to domesticated animals to meet the nutrient
requirements in order to maintain life, promote growth, production and reproduction without
any additional substance except water;

(h) Livestock ~ domesticated animals with four legs reared in captivity mainly for
agricultural purposes, as well as for final and intermediate consumption;

(i) Poultry ~a collective term for all domesticated avian reared in captivity mainly for
agricultural purposes, as well as for final and intermediate consumption;

() Dairy imports ~ refers to imported products with the following HS heading or
AHTN codes: 0401, 0402, 0403, 0404, 0405 and 0406;

(k) Livestock imports — refers to imported products with the following HS heading or

AHTN codes: 0203, 0206.30.00, 0206.41.00, 0206.49.00, 0209.10.00, 0210.11.00, 0210.12.00,
0210.19.30, and 0210.99.20;

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(1) Poultry imports — refers to imported products with the following AHTN codes:
0207.11.00, 0207.12.00, 0207.13.00, 0207.14.10, 0207.14.20, 0207.14.30, 0207.14.91,
0207.14.99, 0209.90.00, 0210.19.90, 0210.99.10, 0210.99.90;

(m) Native Animals — 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;

(n) Philippine Native Animal Development Centers — 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;

(0) Small-hold Farmer — refers to a farmer owning or cultivating five (5) hectares or
less of farmland. Furthermore, it refers to livestock or poultry raiser tending at least one head
or bird of animals and does not qualify as commercial operator.

(p) Stock Farms — refers to the network of stock and breeding farms and facilities
owned and operated by the Bureau of Animal Industry (BAI) and the other government
livestock, poultry, and dairy agencies for the purpose of demonstration of livestock, poultry,
and dairy farming technologies and other programs;

(q) Food security ~ refers to the situation when all people, at all times, have physical,
social, and economic access to sufficient, affordable, safe, and nutritious food that meets their
food preferences and dietary needs;

(1) 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. A value chain can be a vertical linking or a network
between various independent business organizations and can involve processing, packaging,
storage, transport, and distribution;

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

(t) 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.

SEC. 4. Philippine Livestock, Poultry, and Dairy Value Chain Development Roadmap.
~The Philippine Livestock and Poultry Authority (PLPA), established under Section 6 of this
Act, shall lead, in coordination with the concerned government agencies and units mentioned
from items (a) to (k) of this Section and livestock, poultry, dairy, and com industry
stakeholders, the formulation of a ten-year roadmap for Livestock, Poultry, and Dairy Value
Chain Development to be updated every five years. Within one hundred twenty (120) days
from the effectivity of this Act, the Roadmap shall be submitted by the PLPA to the Philippine
Livestock and Poultry Authority Advisory Board (PLPAAB, established under Section 5 of

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this Act, for approval. Likewise, the DA National Corn Program shall update its com industry
roadmap within thirty (30) days after the release of the Livestock, Poultry, and Dairy Value
Chain Development Roadmap.

‘The roadmap will include the development of the com industry to sufficiently support
the demand for feeds of the livestock, poultry, and dairy industries. Such roadmap shall serve
as guide to the formulation and implementation of plans, programs, and projects for the
propagation, utilization, and development of the livestock, poultry, and dairy industries as well
as com per region nationwide. The roadmap will primarily be implemented by the PLPA.

The roadmap shall include the following but not limited to:

(a) Breeder Availability and Upgrading Programs. ~ The PLPA 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;

(b) Corn development programs. - The PLPA, in partnership with the DA National
Com Program, shall improve support for the diversification of the use, such as com silage, and
development of the local corn industry;

(c) Pasture crops and animal feeds programs. — The PLPA shall establish enhanced
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, mungbean, and cassava, and animal feeds resources and
infrastructure:

(4) Native animal programs. ~The PLPA shalll strengthen support for the propagation,
processing, utilization, and development of native animals.

(e) Animal Health Welfare and Protection. ~ The Bureau of Animal Safety and
Regulations (BASR), established under Section 7 of this Act, shall take the lead, in
coordination with Local Government Units (LGUs), 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. It shall
implement continuing programs on surveillance, quarantine and laboratory service,
vaccination, animal movement control, monitoring and management of potential epidemic
threats, and public awareness campaigns on livestock, poultry, and dairy safety;

(f) Enterprise Development. ~The PLPA shall promote the establishment of livestock,
poultry, and dairy credit facilities for small-hold farmers, cooperatives, and farmer
organizations together with financial literacy programs and "farming as business" training
programs with technical support from the Agriculture Training Institute (ATI), Technical
Education and Skills Development Authority (TESDA) and relevant local training institutes;

(g) Training and Extension. — In consultation with the ATI, TESDA-Accredited Farm

Schools, state universities and colleges (SUCs), LGUs, and other relevant institutions, the
PLPA shall provide support to training extension services to small farmers, cooperatives, and

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farmer organizations on technologies and good practice in the propagation, utilization,
marketing, processing and distribution of livestock, poultry, dairy, and native animals;

(h) Market Promotion Programs. ~ The PLPA 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. It shall coordinate with the DA-Agribusiness and
Marketing Assistance Service (AMAS) and Philippine Statistics Authority (PSA) on price and
quantity monitoring on farm-gate livestock, poultry, and dairy produce, eggs, meat, milk and
livestock, poultry, and dairy feeds and other inputs:

(i) Ease of Doing Business and Investment Promotion Program. - The PLPA shall
pursue a program geared towards attracting local and foreign investment across the local com-
feed-livestock-poultry value chain through the use of incentives as well as public-private
partnerships. In furtherance to this, the PLPA shall incorporate into the Roadmap all plans to
constantly improve the investment climate in said value chain by strictly adhering to the Ease
of Doing Business Act of 2018, seeking to simplify and streamline regulatory processes,
ensuring transparency and participatory governance and conducting Regulatory Impact
Assessments for all new regulations proposed under its jurisdictions. In the same spirit, PLPA
shall ensure to implement a regulatory program that removes the possibility of reneging on
foreign trade and investment commitments.

() Research and Development (R&D). - The PLPA shall strengthen research
collaborations through the Bureau of Agricultural Research (BAR), Philippine Council for
Agriculture, Aquatic and Natural Resources Research and Development (DOST-PCAARRD),
and SUC-based research institutions for technical support in the areas of genetic resource
improvement programs (including native animals), pasture seeds and crops for animal food,
crop and non-crop protein rich sources as animal feeds, and product processing that promote
the development and competitiveness of the livestock, poultry, and dairy industries;

(k) Food Safety and Quality Assurance. ~ Consistent with the RA No. 10611 (Food
Safety Act), the BASR shall support the Food and Drug Administration (FDA) in the
enforcement and regulation of food safety and quality standards on livestock, poultry, and dairy
produce and by-products. The BASR shall also implement food safety and quality enhancement
programs to improve the compliance levels of the livestock, poultry, and dairy sub-sectors to
ensure higher levels of competitiveness and faster growth of the livestock, poultry, and dairy
industries. Subject to the relevant provisions of RA No. 11032 (Ease of Doing Business Act of
2018), the BASR shall assist the FDA in hastening the registration and approval of livestock,
poultry, and dairy processing establishments that serve as markets for primary livestock,
poultry, and dairy produce. It shall provide advisory assistance on technical matters to help
registrants of livestock-, poultry-, and dairy-related processing facilities, packaging plants,
dairy pasteurization facilities, and processed cheese production comply with food safety
regulations and standards. When such applications for registration or renewal of licenses of
said livestock, poultry, and dairy processing establishment exceed, without compelling
grounds, the processing time limits set forth in RA No. 11032 — reckoning from the date of
receipt of said applications — the BASR is hereby authorized to receive the applications and
approve the same, in support of the FDA, and subject to the standards, protocols and criteria
prescribed by it.

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(1) Livestock, Poultry, and Dairy Production Networks Program. ~ The PLPA shall
formulate and implement livestock, poultry, and dairy cluster development programs for small-
hold farmers” cooperatives, associations, 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 PLPA shall formulate
programs that will enhance the value-addition and value-adding opportunities of the processing
of livestock and poultry meat, and dairy milk. Provided, that the utilization of the Livestock,
Poultry, Dairy, and Related Feeds Competitiveness Enhancement Funds, created under Section
18 of this Act, shall be in accordance with the objectives and targets of this roadmap.

SEC. 5. Establishment of the Philippine Livestock and Poultry Development Authority
Advisory Board. — There is hereby created a Philippine Livestock and Poultry Development
Authority Advisory Board (PLPAAB) to oversee and provide policy directions on the
integrated implementation of the programs funded by the Livestock, Poultry, Dairy, and
Related Feeds Competitiveness Enhance Funds in accordance with the Livestock, Poultry, and
Dairy Value Chain Development Roadmap. The PLPAAB shall be comprised of: (1) the
Secretary of DA, as Chairperson; (2) the Undersecretary of PLPA, as the Vice Chairperson; (3)
the Undersecretary for Regulations; (4) the administrator of the DA Corn National Program;
(5) the Secretary of National Economic and Development Authority (NEDA); (6) the Secretary
of Department of Finance (DOF); (7) the Secretary of Department of Science and Technology
(DOST); (8) the Secretary of Department Trade and Industry (DTI); (9) other government
agencies concerned, and (10) one representative each from the livestock, poultry, dairy, animal
feed, and corn industry.

SEC. 6. Rationalization of Developmental Functions of the Livestock and Poultry
Support Agencies. ~ The BAI (created under RA No. 3639), the Philippine Carabao Center
(PCC) (created under RA No. 7307), and the National Dairy Authority (NDA) (created under
RA No. 7884) are hereby merged, subject to further rationalization, to form the Philippine
Livestock and Poultry Authority (PLPA), which shall be headed by an Undersecretary of the
DA.

The PLPA shall implement and supervise the following developmental functions and
programs:

(a) National Livestock Program of the DA;

(b) Meat Establishment Improvement Program (MEIP) of the National Meat Inspection
Service (NMIS);

(©) Livestock, poultry, and dairy-related functions of DA-Regional Field Offices (DA-
RFOs), (e.g., provision of animal stocks, drugs and biologics, training, machinery and
equipment, establishment of multiplier or breeder farms and other facilities, among other); and

(d) Philippine Livestock, Poultry and Dairy Value Chain Development Roadmap and
its regularly updated versions.

The PLPA’s main goals and functions are to:

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(a) Promote the competitive development of the value chain of the livestock, poultry,
and dairy industries and the various subgroups within the livestock, poultry, and dairy sector
as means of attaining food security, improving global competitiveness and combating rural
poverty; and

(b) Develop, maintain, and access big data or technologies able to handle vast amounts
of structured and unstructured data to provide timely, accurate, and responsive information to
PLPA and BASR management, livestock, poultry, and dairy farmers, farmer organizations and
cooperatives, and other players in the value chain of the livestock, poultry, and dairy sector.

The PLPA shall have the following offices under it:

(a) Livestock, Poultry and Dairy Industry Development (LPDID) Office. The LPDID
Office shall coordinate the formulation and implementation of policies, programs, and
roadmaps to hasten and sustain the development of the various livestock, poultry, dairy, and
native animal sub-sectors, consistent with the pertinent industry development mandates under
Sections 3-1, 6 and 7 of Act 3639 of 1930 (BAN), as well as in Sections 5 and 6 of RA No. 7307
(PCC) and Sections 3, 6, 11, 12 and 13 of RA No. 7884 (NDA) and the RA No. 8435
(Agriculture and Fisheries Modernization Act of 1997 - AFMA). These shall include programs
that enhance the value chain of the livestock, poultry, and dairy sectors, such as improving
industry utilization of livestock, poultry, and dairy R&D, supporting market development and
marketing services, enhancing the quality, availability and affordability of inputs for livestock,
poultry, and dairy, improving processing, value-addition and diversification of by-products, as
well as development of sources of feeds and forage. There shall be particular focus on
developing strategic livestock, poultry, and dairy production zones, clusters and networks in
every province and/or rural district, and linking small hold farms, cooperatives, farmer
organizations, and community-based ventures, sources of credit and financing, and LGU
support into sustainable enterprise ecosystems.

With these goals, LPDID Office shall supervise the following Services, which are
hereby also created, namely:

(1) Ruminants Service (RS) — to provide developmental support, extension services,
research, and technical assistance programs to small hold farmers of cattle,
carabaos, buffaloes, goats, and sheep for meat production and processing as well as
for draft animal purposes. The RS shall absorb the following units of the BAI,
subject to further rationalization:

(i) National Beef Cattle Research and Development Center
(ii) National Small Ruminants Research and Development Center

(2) Non-ruminants Service (NRS) — to provide developmental support, extension
services, research, and technical assistance programs to small hold producers 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 following units of the BAI, subject to further
rationalization:

(i) National Swine and Poultry Research and Development Center

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(ii) National Stud Farms and horse development centers, created by virtue of R.A.
4618

The NRS shall continue the stud and racehorse development programs under R.A.
4618, R.A. 7952 (Philippine Racing Club), R.A. 7978 (Metro Manila Turf Club,
Inc.), and RA 8007 (Manila Jockey Club).

(3) Dairy Development Service (DDS) — shall, in addition to the current focus on cows,
include carabaos and small ruminants as priorities, with the end in view of
increasing milk production in the Philippines towards minimum of ten percent
(10%) per year. Subject to further rationalization, the DDS shall assume the
development mandates, programs, assets, and personnel of the following agencies:

(i) PCC created under R.A. 7307
(ii) NDA created under R.A. 7884
(iii) National Feed Resources Research and Development Center

The DDS shall continue and improve upon the dairy production and livelihood
programs of the PCC and NDA, and their partnerships with stakeholders, including
SUCs, especially in dairy cow and buffalo breeding, propagation of dairy animals
and milk production technologies, and the pasteurization and initial processing of
raw milk. It shall expand the coverage of services in providing artificial
insemination, bull loan program, frozen semen dissemination, dairy animal
modules, forage and feeds development, training of technicians and farmers, R&D,
technical assistance and extension, analysis of milk samples, nutrition laboratory
services, and marketing of dairy products and promotion of dairy farmers
cooperatives, associations, or organizations. It shall facilitate industry networks and
investment in milk production, collection and handling, processing, trading, and
marketing of Philippine milk produce, including promotion through specialty dairy
kiosks and in international markets. The DDS shall also coordinate the
implementation of a national milk feeding program in partnership with the
Department of Education (DepEd) and/or the Department of Social Welfare and
Development (DSWD) and LGUs.

(4) 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. 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, for Visayas, and for Mindanao, respectively, to

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ensure the distributed implementation of native animal policies and development
programs, and make them accessible to farmers in their respective island groups.
NADS jis authorized to acquire properties, receive donations, or grants for the
establishment of said centers. It shall have a yearly native animals dispersal program
for rural communities that receive and are able to demonstrate adequate social
preparation and technical trainings.

(5) Research and Marketing Service (RMS) ~ The RMS shall be responsible for studies
and proposals for livestock, poultry, dairy and meat consumer protection, consumer
attitudes, buyer 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 the BAI.

(6) Training and Extension Service (TES) — The TES shall be responsible for
organizing and coordinating livestock, poultry, and dairy training and educational
programs in partnership with LGUs, cooperatives federations, farmer organizations
or associations, regional offices of DA, and the ATI 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.

(b) Livestock, Poultry, and Dairy Management Information System (LPDMIS) Office.
The LPDMIS, in coordination with the PSA and other relevant government agencies, shall
empower the livestock, poultry, and dairy farmers, farmer organizations or associations,
cooperatives, and other relevant players along the livestock, poultry, and dairy value chain
through timely, accurate and responsive business information and efficient trading services.

‘The LPDMIS shall setup the National Information Network (NIN) in the Information
Communication Technology Service (ICTS) Office of the DA within one hundred eighty (180)
days from the approval of this Act. Furthermore, the NIN shall provide information and
marketing services related to livestock, poultry, and dairy (LPD) which shall include but not
limited to the following data down to the provincial level:

(1) LPD supply data (this includes but not limited to LPD inventory, production data,
exports, and imports);

(2) LPD demand data;

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

(4) Animal feed data (inventory and prices);

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

(6) Best practices in LPD animal care, LPD production, and LPD processing;

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(7) Local and international product standards for both primary and processed LPD
products;

(8) Directory of, but not limited to, LPD backyard raisers, cooperatives, farmer
organizations, commercial LPD producers, traders, key market centers, feed
millers, processors and business institutions concerned with LPD;

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

(10) Information on pest, diseases, and epidemics to ensure food safety and animal
health protection:

(11) International, national, regional, and provincial market forecast;
(12) Support extension providers relevant information; and

(13) Data relating to programs of the PLPA and BASR (this includes but not limited
to importation of breeds, artificial insemination, natural breeding, buy-back
programs, etc.).

The NIN shall be linked to the PSA database and website for easy access of users to
data on livestock, poultry, and dairy information.

SEC. 7. Rationalization of Regulatory Functions of the Livestock and Poultry Support
Agencies. ~ The regulatory roles of the NMIS (created under Presidential Decree no. 7, s. 1972
as amended by RA no, 9296) and the BAI (created under RA no. 3639) are hereby merged,
subject to further rationalization, to form the BASR, which shall be headed by Undersecretary
for Regulations of the Department .

The BASR shall also implement and supervise the regulatory functions and programs
related to livestock, poultry, and dairy of the NDA, PCC, and the DA-RFOs.

The BASR shall have the following principal goals and functions:

(a) To undertake regulatory and monitoring services in order to ensure the health of the
livestock, poultry, and dairy herds of the country, quality standards of production and
processing across the value chain , and food safety of primary produce of the livestock, poultry,
and dairy sectors in the country;

(b) To hamess the support of various sectors and networks, including the LGUs, in
protecting the health and welfare of the livestock, poultry, and dairy sectors and in responding
to threats that may be brought about by pests, diseases, and animal epidemics; and

(c) 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 and the trade of their products.

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The BASR shall have the following offices under it:

(a) Livestock, Poultry, and Dairy Regulation Office (LPDRO) shall oversee the
following Service groups:

(1) Imports, Exports, and Veterinary Drugs and Products Regulation Service
(IEVDPRS) ~ shall provide regulatory services as mandated under prior livestock,
poultry, and dairy import regulatory laws, including Act 3101 (1923), RA No. 1071,
RA No. 1156, P.O. No. 34 section 105(r), and coordinate with relevant units,
agencies and/or institutions, including the Bureau of Customs and the Department
of Transportation, in developing strategies and measures to deal with the country’s
livestock-, poultry-, and dairy- related imports and exports to prevent and minimize
health and environmental risks.

Furthermore, consistent with RA 3101 (1923), RA 1071 (1954), RA 1556
(Livestock and Poultry Feeds Act), RA 9711 (Food and Drug Administration Act
of 2009) sections 14 (paragraph 5) and 25, and the implementing rules and
regulations of RA 10611 (Food Safety Act of 2013) section 15 (rule 15a.7), the
IEVDPRS shall have sole jurisdiction over and regulate the veterinary drugs and
products (including additives, premixes and medicated feed among others),
veterinary biological products, and other related animal health products and devices
intended solely for animal use to ensure efficient supply, food safety, and minimize
environmental risk. The IEVDPRS shall also regulate the licensing and monitoring
of related veterinary drug and products establishments such as manufacturers,
traders, distributors, importers, exporters, wholesalers, and outlets. The following
divisions of the BAI shall be part of this Service group:

(i) Animal Feeds, Veterinary Drugs and Biologics Control Division (AFVDBD)
ii) National Veterinary Quarantine Services Division (NVQSD)

(2) Livestock and Poultry Meat Inspection Service (LPIS) ~ shall inherit the powers
and functions, assets, and the organization of the NMIS created under RA No. 9296,
as amended by RA No. 10536, except for the roles related to the import and export
of meats which shall be assumed by IEVDPRS. The LPIS shall continue to be the
controlling authority in the enforcement of all policies, regulations, guidelines, and
standards pertaining to primary meat products, meat 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, it shall continue to conduct
inspection and monitoring, in coordination with local government units, of meat
establishments engaged in slaughter, processing, and domestic meat trade;
registration of meat produce 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.

(3) Livestock, Poultry, and Dairy Protection and Disease Control Service (LPDPDCS)

~ shall, in addition to the roles of the BAI mandated under Sections 2, 3, 4 and 5 of
‘Act 3639 of 1930, be responsible for programs, policies, surveillance, and

Page | 11


emergency action to protect the livestock, poultry, and dairy industries from the risk
of outbreak of diseases or pests and shall have the following powers and functions:

(i) Livestock, poultry, and dairy protection surveillance, including regular
surveillance inspections in partnership with industry players and the LGUs, in
coordination with the World Organization for Animal Health, Codex
Alimentarius, Sanitary and Phytosanitary (SPS) Secretariat of the World Trade
Organization, international not-for-profit organizations in the veterinary service
sectors, its counterpart offices in other countries and implementing capability
building programs in partnership with the ATI to establish livestock, poultry,
and dairy 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 and military to
control pest outbreaks, and disposal of affected livestock, poultry, or dairy
resources and assets;

(iii) Conducting scientific research and technology advancement programs on
livestock protection by partnering with SUCs, DOST, private sector
laboratories, and international centers for livestock, poultry, and dairy disease
control.

(4) The following units of the BAI are hereby merged and consolidated into the
LPDPDCS, subject to further rationalization, to wit:

(i) Animal Health and Welfare Division (AHWD)
(ii) Veterinary Laboratory Division (VLD)

SEC. 8. 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 IEVDPRS under BASR shall be the sole regulatory agency over veterinary
drugs and products, veterinary biological products, and other related animal health products
and devices intended solely for animal use. All regulatory processes for veterinary drugs and
products, veterinary biological products, and other animal health products and devices intended
solely for animal use being handled by other agencies, such as the Food and Drug
‘Administration (FDA), shall be transitioned to the IEVDPRS-BASR within ninety (90) days
following the effectivity of this Act. Furthermore, all laws, rules, regulations, guidelines, and
other issuances inconsistent with this streamlining are hereby repealed.

SEC. 9. Adoption of Good Governance and Ease of Doing Business in the Regulation
of the Livestock and Poultry Value Chain. ~ The BASR and its various offices and services
under it shall at all times be guided by the principles of good governance and ease of doing
business in the development and implementation of their assigned regulatory functions. This
includes, but is not limited to:

Page | 12


(a) The conduct of stakeholder consultations prior to the issuance of new regulations;

(b) Reasonable timeframes for stakeholders to provide comments on proposed new
regulations;

(©) The conduct of regular stakeholder dialogues to keep all concerned industry players
updated on the latest regulations and directions of the BASR and its various attached Services;

(d) Automation of regulatory filing processes with an end view towards improving
tumaround times and reducing costs, while maintaining a high level of online transaction
security;

(©) Removal of unnecessary documentation for the simple renewal of licenses,
registrations and permits;

(f) Increase validity periods of licenses, registrations and permits so as to reduce the
frequency for renewal applications; and

(g) Adoption of risk-based regulatory frameworks that adopt less stringent and
cumbersome regulatory processes for lower risk products using mechanisms such as simple
notification systems or the adoption of mutual recognition regimes.

SEC. 10. Authority in Livestock, Poultry, and Dairy Pest and Diseases-related
Emergencies. ~ With the LPDPDCS as its implementing arm, the BASR 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 in any region by at least two percent (2%). The BASR 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:

(a) Department of Agriculture — Regional Office:

(b) Department of Interior and Local Government (DILG) ~ Regional Office;

(©) Philippine National Police (PNP) and/or Philippine Army (PA) — Regional
‘Command;

(d) Department of Health (DOH);
(e) Department of Science and Technology (DOST);

() Provincial governor and/or Provincial Agriculturist;
(g) Congressional Representative of the affected district;
(h) Mayors of the affected municipalities/cities; and

(i) Other science experts on the case.

Page | 13


SEC. 11. 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 PLPA and BASR service offices created in this bill, but shall continue
to be operational until such time as the head of the new Agency 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 found in, among others: Gen. Tinio, Nueva
Ecija; Tiaong, Quezon; Lipa, Batangas; Busuanga, and Coron in Palawan; Dumarao, Capiz;
Milagros in Masbate; Malaybalay, Bukidnon; Ubay, Bohol and the two separate forage
centers/stations in Labangan, Zamboanga del Sur; the Philippine Carabao Center, including its
headquarters in Munoz, Nueva Ecija; and its regional centers in La Carlota, Negros Occidental;
Ubay, Bohol and Calauit, Zamboanga del Norte; and the various physical and financial assets
(including all receivables) of the National Dairy Authority shall be transferred under the title,
care and administrative supervision of the LPDID Office to primarily support the needs of
small-hold farmers as the base locations for purposes of human resource development and
livestock training, gene pool support facilities, livestock breeding, extension work,
demonstration activities, and trade promotion activities.

SEC. 12. Exemption from Taxes and Duties.— The livestock, poultry, and dairy animals,
veterinary and other supplies, farm inputs, dairy equipment and machineries, and research
equipment (including their spare parts) as listed in annex “A” of this Act and are actually,
directly, and exclusively used by the small and micro producer enterprises and/or cooperatives
in the production of livestock, poultry, and dairy and/or manufacture of livestock, poultry, and
dairy by-products shall be exempt from payment of custom duties and taxes.

The private livestock, poultry, and dairy stakeholders can also import breeders and the
like, subject to regulations to be established by the PLPA and the Ease of Doing Business Act
of 2018. The private livestock, poultry, and dairy importers shall submit a status report to the
PLPA on imported livestock and materials for monitoring purposes.

SEC. 13. Lifting of Quantitative Import and Export Restrictions on Corn. — All laws,
rules, regulations, guidelines, and other issuances imposing quantitative import and export
restrictions on cor, except those related to the prevention and spread of plant, animal pests
and diseases, are hereby repealed.

SEC. 14. Promotion of Foreign Investments in the Corn Sector and Repeal of
Presidential Decree 194. ~ Consistent with RA 11203 or the Rice Tariffication Law, PD 194
and RA No. 3018 are is hereby repealed.

SEC. 15. 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
(MEN) tariff rates on livestock, poultry, and corn 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 MEN rate adjustments for livestock, poultry, and corn imports
that will ensure the competitiveness of the livestock, poultry, and dairy sectors.

Page | 14


SEC. 16. Powers of the President. — Consistent with the Philippine national interest and
the objective of safeguarding Filipino livestock, poultry, and corn 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 corn 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 the importation of livestock,
poultry, and corn. 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
corn 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.

SEC. 17. Amendment of RA No. 8178. — Section 12 of RA No. 8178, as amended, is
hereby amended to read as follows:

“Sec. 12. Agricultural Competitiveness Enhancement Fund.— to implement the
policy enunciated in this act, there is hereby created the Agricultural
Competitiveness Enhancement Fund, herein referred to as the fund. ‘The fund
shall consist of all duties collected from the importation of agricultural
products, except rice, livestock, poultry, and dairy imports, feed wheat and corn,
under the MAV mechanism, including unused balances and collections from
repayments from loan beneficiaries including interests, if any. The fund shall
be automatically credited to special account 183 in the general fund of the
national treasury: provided, that fund releases shall not be subject to any ceiling
by the Department of Budget and Management (DBM).”

SEC. 18. Mandated Appropriations for the Reorganization of Concerned Government
Livestock, Poultry, and Dairy Agencies and Programs, — On top of the existing budgets of the
relevant agencies and units of the former BAI, NMIS, PCC, and NDA, the amount of five
hundred million pesos (P500,000,000,00) shall be appropriated as funds for the reorganization
and restructuring, initial programs and operations of the PLPA and BASR, to be set aside from
the current agriculture development funds under the Office of the Secretary. The current year’s,
remaining appropriations of the agencies, divisions, or units that have been merged, abolished,
or transferred pursuant to this Act shall be turned over to the PLPA and BASR. Thereafter,
such sums as may be necessary for its continued operation and maintenance shall be included
in the annual General Appropriations Act (GAA).

Page | 15


SEC. 19. Creation of the Livestock, Poultry, Dairy, and Related Feeds Competitiveness
Enhancement Funds. — There is hereby created a Livestock, Poultry, and Dairy
Competitiveness Enhancement Fund, herein referred to as the ‘LPDCEF’, and a Corn
Competitiveness Enhancement Fund, herein referred to as the ‘CCEF’.

The LPDCEF shall consist of an annual appropriation of six billion and three-hundred
million pesos (P6,300,000,000.00) in six (6) years following the approval of this Act. It 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, the
allocation and utilization of the LPDCEF shall be subject to the following guidelines:

(a) If the annual tariff revenues from livestock, poultry, and dairy importation in the
first six (6) years following the enactment of this Act exceeds six billion and three-hundred
million pesos (P6,300,000,000.00) , the excess tariff revenues shall be earmarked by Congress
and added to the LPDCEF included in the GAA of the following year;

(b) The Secretary of the DA shall be accountable and responsible for the management
and utilization of the LPDCEF in coordination with other government agencies concerned;

(c) 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 4 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 LPDCEF shall not be subject to any ceiling by the Department of
Budget and Management (DBM). Provided, further, that twenty percent (20%) of the excess
annual tariff revenues at any given year shall be set aside in setting up and maintaining the NIN
database system needed by PLPA in providing timely, accurate, and responsive business
information and efficient trading services to stakeholders along the livestock, poultry, and dairy
value chain ; 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 livestock, poultry, and dairy farmers already implemented by the Department and other
agencies concerned.

‘The CCEF shall consist of an annual appropriation of two billion and eight-hundred
million pesos (P2,800,000,000.00) in six (6) years following the approval of this Act. It 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.

Further, the corn development fund, created under Presidential Memo No. 468 dated
March 17, 1998, held in trust by the National Food Authority (NFA), is hereby dissolved and
the remaining balance is hereby transferred to the PLPA. Provided, the allocation and
utilization of the CCEF shall be subject to the following guidelines:

(a) If the annual import tariff revenues from cor and feed wheat in the six (6) years
following the enactment of this Act exceeds two billion and eight-hundred million pesos
(P2,800,000,000.00), the excess tariff revenues shall be earmarked by Congress and added to
the CCEF included in the GAA of the following year;

Page | 16


(b) The secretary of the DA shall be accountable and responsible for the management
and utilization of the CCEF in coordination with other government agencies concerned:

(c) 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 4 of this Act: provided, that the
unutilized portion of the CCEF allocated to the implementing agencies shal] 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 CCEF 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 corn farmers already implemented by the DA and other agencies concerned.

SEC. 20. Allocation and Disbursement of the Livestock, Poultry, Dairy, and Related
Feeds Competitiveness Enhancement Funds (LPDCEF) and Corn Competitiveness
Enhancement Fund (CCEF). ~ Subject to the usual accounting and auditing rules and
regulations, the LPDCEF shall be allocated and disbursed, as follows:

(a) Grants to livestock and poultry shared service facilities in strategic areas or
provinces, thirty-five percent (35%), to be implemented by the LPDID office under PLPA, to
serve the needs of livestock, poultry, and dairy growers’ cooperatives and associations or
organizations:

(1) Primary processing facilities — this includes but not limited to improving and
increasing the number of ‘AAA’ certified PLPA slaughterhouses, halal certified
facilities, and “AAA’ certified PLPA poultry dressing plants.

(2) Cold chains — this includes but not limited to improving availability and
technology of cold storage, blast freezers, refrigerated transport for dairy,
processed meat and poultry products.

(3) Animal feeds facilities and equipment ~ this includes but not limited to
enhancing and developing feed mills, forage pelletizing equipment, and forage
and com silage processing facilities.

(4) Dairy processing equipment and facilities — this includes but not limited to milk
testing centers, improving milk processing equipment and facilities,
pasteurizing equipment, and dairy processing facilities.

(5) Gene pool facilities and breeder farms

() Credit for the improvement of livestock. poultry, and dairy breeders and stocks,

fifteen percent (15%) with minimal interest rates and documentary requirements to be managed

by the Land Bank of the Philippines (LBP) for the purchase of breeders, growers, multipliers,
feeds, genetically improved stocks, establishment of animal housing, and farm equipment;

(c) Research and Development, five percent (5%) that is industry driven, to be
implemented by the BAR, for technology transfer activities under the Livestock, Poultry, and

Page | 17


Dairy Farm Technology Support Programs and priority areas that include: quality genetic
materials, indigenous feeds, vaccines for major animal diseases, cost-competitive animal
houses, water recycling and meat quality and safety;

(@) Organizing and clustering of backyard livestock, poultry, and dairy raisers, five
percent (5%), into formal groups, cooperatives and associations or organizations, to be
implemented by the Department in collaboration with the Cooperatives Development
Authority (CDA), to achieve economies of scale, facilitate and maximize coordination and
dissemination of government interventions (such as capacity development, technology transfer,
regulatory compliance, and deliver of other production and support extension services), and
improve viability to engage in joint ventures and other contract agreements with commercial
enterprises, or agro-industrial enterprises and other players in the value chain;

(e) Improving food safety and animal support extension, fifteen percent (15%), to be
implemented by the LPDID office under PLPA, BASR, ATI, and BAFS, not limited but
includes the following activities:

(1) Provision of good animal health services — including but not limited to animal
medicines, biologics, and provision of animal husbandry experts or
veterinarians in the case for newly acquired imported dairy breeds for small
farmers and Dairy Multiplier Farms (implemented by ATI and LPDID office
under PLPA);

(2) Enforcement of biosecurity measures — including but not limited to raising the
capacity, the capability, and increasing number of regional laboratories
(implemented by LPDPDCS office under BASR):

(3) Conduct of trainings ~ to assist livestock, poultry, and dairy farmers to comply
with good animal husbandry practices, proper animal care services, proper and
optimal feeding requirements (especially for dairy animals), food safety
regulations, domestic and international standards, animal welfare and packaging
standards (implemented by ATI, Intemational Training Center on Pig
Husbandry (ITCPH), LPDID office under PLPA, and LPIS office under
BASR).

(4) Establishment of traceability system of dairy and meat products ~ to ensure
product quality and compliance to domestic and international standards, such as
traceability of chemical residues and other substances (implemented by LPIS
office under BASR, ATI, and BAFS).

(5) Training and increasing number of support extension providers — including but
not limited to artificial insemination technicians, project development officers,
among others (ATI and LPDID office under PLPA).

(6) Development of farm schools — for the purpose of demonstration of livestock,
poultry, and dairy farming technologies, best practices in animal care and
production, and other programs (ATI and LPDID office under PLPA).

(f) Seven percent (7%) of the LPDCEF shall be made available to ATI, three percent
(3%) of the LPDCEF shall be released to ITCPH, two and a half percent (2.5%) of the LPDCEF

Page | 18


shall be made available to PLPA and BASR and two and a half percent (2.5%) shall be made
released to BAFS for improving food safety and animal support extension.

(g) Scholarship and human resource development grants, five percent (5%). to be
implemented by the Commission on Higher Education (CHED), for college courses in
veterinary, animal husbandry and livestock, poultry, and dairy processing specializations, and
TESDA courses, related to livestock, poultry, and dairy production, as well as dairy and meat
processing. Provided, that the beneficiaries of the scholarship and human resource development
grants shall serve in the PLPA, BASR, or any LGU livestock, poultry, and dairy related
functions (which includes but not limited to municipal agricultural officers) for a minimum of
2 years.

(h) Direct financial assistance, five percent (5%), to be implemented by the PLPA, for
livestock and poultry farmers greatly affected by any pest or diseases, natural disasters, or tariff
adjustments and modification, and maybe based on the changes in the farmgate price. Provided,
that the duration of the financial assistance is limited during the growing season where the
growers are adversely affected.

(i) Dairy herd build up programs, fifteen percent (15%), to be implemented by the DDS
office under PLPA, in order to significantly increase local milk production by expanding the
population of dairy producing animals (this includes but not limited to cattle, carabao, and
goats). The program includes the following activities:

(1) Stock infusion through importation of dairy animals;

(2) Upgrading dairy stocks through the artificial insemination using sexed semen
(which increases probability of having female calf by as much as eighty-five
percent (85%) and bull breeding;

(3) Buy-back program such that offspring (island born) produced out of upgrading
activities in II are procured by PLPA and are redistributed to eligible and
qualified farmer beneficiaries;

SEC. 21. Allocation and Disbursement of the Corn Competitiveness Enhancement Fund
(CCEF). ~ Subject to the usual accounting and auditing rules and regulations, the CCEF shall
be allocated and disbursed, as follows:

(a) Mechanization of com farms, ten percent (10%), to be implemented by the
Philippine Center for Postharvest Development and Mechanization (PHILMECH) as grant in
kind to eligible farmers associations or organizations, registered com cooperatives, and LGUs
in the form of com equipment such as tillers, tractors, rotary seeders, sprayers, irrigation
pumps, harvesters and the like for purposes of improving farm mechanization: provided, that
the PHILMECH shall, whenever feasible, procure from accredited local manufacturers to assist
in the promotion of locally manufactured farm equipment or machinery.

(b) Provision of irrigation, post-harvest centers (including comn-silage facilities), and
warehouses and/or silos, fifty percent (50%), to be implemented by the National Com Program
of the DA thru the DA-RFOs and the Bureau of Soils and Water Management (BSWM) in
strategic areas or provinces to maximize corn yield and minimize wastage or losses and reduce
costs of drying, milling, storage, and ensure quality of the com. Provided, that the operation

Page | 19


and maintenance shall be borne by the beneficiary farmer organizations, cooperatives, or
concerned LGU. Thirty five percent (35%) shall be released to the DA National Corn Program
to provide post-harvest centers, warehouses and/or silos. Fifteen percent (15%) shall be made
available to the BSWM for the provision of irrigation to corn farms.

(c) Direct financial assistance, ten percent (10%), to be released and implemented by
the DA Com National Program for corn farmers greatly affected by pest or diseases, natural
disasters, or any tariff adjustments and modification, and maybe based on the changes in the
farmgate price. Provided, that the duration of the financial assistance is limited during com
harvest season where the corn farmers are adversely affected.

(d) Com seed research and development, promotion, and provision, twenty percent
(20%) shall be made available for the research and development, promotion, and provision of
high yield com varieties. Ten percent (10%) of the corn fund shalll be released to BAR for the
research and development of high yielding corn seeds and ten percent (10%) of the corn fund
shall be implemented by the DA National Corn Program thru the DA-RFOs for the promotion
and provision of high yielding com varieties to corn farmers, associations/organizations, or
cooperatives. Provided, that the DA Corn National Program shall, whenever feasible, procure
from accredited local seed manufacturers to assist in the promotion of locally manufactured
seeds.

(e) Com farm consolidation, com use diversification, and corn value chain integration,
ten percent (10%), to be implemented by the DA National Corn Program and ATI. The DA
National Corn Program shall consolidate corn farms in order to improve economies of scale
and shall provide programs to diversify the use of corn, such as corn silage, which can increase
incomes of corn farmers. Further, ATI shall provide extension support to increase productivity
and link organized corn farmers’ cooperatives and associations with private sector. This
includes seed producers, feed millers, and commercial feed manufacturers in joint ventures or
other marketing arrangements. Five percent (5%) each of the corn fund shall be made available
to the National Corn Program and ATI.

SEC. 22. Effective utilization of the LPDCEF and CCEF. — The PLPAAB created in
Section 5 of this Act shall establish rules and regulations to ensure the effective utilization of
the LPDCEF and CCEF, including but not limited to the following:

(a) Ensure complementation and synergy among the different components to achieve
the objectives and targets in the Livestock, Poultry, and Dairy Value Chain Development
Roadmap, such as in terms of target areas and beneficiaries;

(b) The livestock, poultry, and dairy shared facilities and equipment shall be
established and distributed in target areas identified based on a gap and cost-benefit analysis.
In addition, the operation and maintenance shall be borne by the beneficiary livestock, poultry,
and dairy formal groups or LGUs;

(©) The CDA shall provide regular reports to the advisory board on the number of
backyard raisers that it has organized into formal groups and monitoring if they are functional;

(d) Ensuring water-use efficiency and proper livestock, poultry, and dairy waste
management;

Page | 20


(e) Ensuring proper monitoring and evaluation of the dairy herd build up programs;
and

(f) The com facilities and equipment shall be established or distributed in target areas
identified based on a gap and cost-benefit analysis. In addition, the operation and maintenance
shall be borne by the beneficiary corn formal groups or LGUs.

SEC. 23. Beneficiaries of LPDCEF. - That preferential attention should be given to
livestock, poultry, and dairy farmers who are members of cooperatives and farmer associations
or organizations. Provided, further, the beneficiaries of the LPDCEF shall be those backyard
livestock, poultry, and dairy farmers and their dependents listed in the Registry System for
Basic Sectors in Agriculture (RSBSA), and livestock, poultry or dairy cooperatives and
associations or organizations accredited by the Department. 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 backyard farmers, farmworkers, and livestock, poultry
or dairy cooperatives and associations or organizations.

SEC. 24. Beneficiaries of CCEF. — Preferential attention should be given to corn
farmers, cooperatives, and associations or organizations adversely affected by the law in
accordance with the thrust and priorities of RA No. 8435, as amended, otherwise known as the
‘Agriculture and Fisheries Modernization Act’ and the Philippine Development Plan (PDP).
The increase or decrease of farmers’ incomes shall be the primary benchmark in granting these
interventions. Provided, further, the beneficiaries of the corn fund shall be those farmers and
farmworkers and their dependents listed in the RSBSA, and corn cooperatives and associations
or organizations accredited by the Department. 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 farmers, farmworkers, and corn cooperatives and
associations.

SEC. 25. Review of the Livestock, Poultry, Dairy, and Related Feeds Competitiveness
Enhancement Funds. - The following mandatory reviews of the LPDCEF and CCEF shall be
performed:

(a) At the end of the sixth (6th) year of the effectivity of this Act, a mandatory review
shall be conducted by the Congressional Oversight Committee on Agricultural and Fisheries
Modernization (COCAFM) to determine whether the LPDCEF and CCEF and their use as
provided for under this Act shall be continued, amended, or terminated. The COCAFM shall
utilize the increase or decrease in farmers’ incomes as a primary benchmark in determining the
effectiveness of the interventions under the program and its possible extension;

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

(c) The Philippine Institute for Development Studies (PIDS) shall conduct impact

evaluation of the LPDCEF and CCEF programs to livestock, poultry, dairy, and corm
productivity on the third (3rd) and sixth (6th) year of the effectivity of this Act.

Page | 21


SEC. 26. — Budget for the Procurement of Local Fresh Milk and Fresh-Milk based
Products under the Milk Feeding Program of RA No. 11037. — The DSWD and DepEd shall
allocate a minimum of forty percent (40%) of their budgets for the implementation of the
National Feeding Program in procuring locally produced fresh milk and fresh-milk based food
products which are incorporated in the fortified meals and cycle menu of the National Feeding
program.

SEC. 27. Implementing Rules and Regulations. — Within forty-five days (45) from the
effectivity of this Act, the Department shall, in coordination with DBM, DepEd, DOF, DTI,
TESDA, NEDA, and other government agencies concerned, shall coordinate with government
agencies concerned formulate the rules and regulations for the proper implementation of this
Act. Such implementing rules shall, among others, provide for the following:

(a) Plans, programs, policy recommendations and proposed measures necessary to
carry out the objectives and functions of the PLPA and BASR and their Offices and Service
units;

(b) Submit, an annual budget and proposed supplemental budget as may be needed in
its initial operations, and a consultative process for stakeholders in the formulation of PLPA
and BASRs’ annual budgets in line with the national budget cycle; and

(©) A proposed rationalization program to update the organizational structure, and
plantilla of personnel of the PLPA and BASR, in accordance with existing laws, rules and
regulations, including the early separation benefits for the occupants of positions abolished.

SEC. 28. 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
thereby shall continue to be in force and effect.

SEC. 29. 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. 30. 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,

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