Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _1246

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The dairy sector is an unpresuming sector in the industry that is not only
important in economic terms, but also plays a huge role in the diet of the Filipino family.
With dairy production in the country being more community-based and with the lack of
dairy processing facilities and milk delivering vehicles, maintaining the quality and
accessibility Of affordable fresh milk becomes a major concern While the Department
of Agriculture has lain out plans for the dairy industry through its Philippine Dairy
Development Plan 2008, there is a need for a strong thrust for this development as a
large part of the local dairy consumption is still being imported of erases.

Strong partnership between the government, the farmers, and those involved in
the production and supply of dairy products is a step in lifting this sector to its full
Potential. The merging of the Philippine Carabao Center and the National Dairy
Authority will help shift the concentration of powers to one implementing body tasked to
ensure the acceleration of this industry. The creation of the Philippine Dairy
Development Agency, as the bill provides, will allow programs and projects from two
structures to merge as one function and streamline the processes involved. This will
stimulate rural-based small farm operators, farm families and cooperatives through
provision of necessary assistance as well as establish comprehensive support for the
development of the ruminant livestock industry.

This bill, a counterpart bill to Senator Villar's filed bill [n the Senate, seeks to
provide this assurance of progress and self-sufficiency in the Dairy industry. Through
the exemption from taxes and duties provision, the agency to be created will be able to

upgrade and improve equipment and machineries without affecting the funds to be
used for the agencies’ functions,

In view of the foregoing, the immediate passage of this bill earnestly sought.

LUIS R; UI . VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, _1248

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

AN ACT
MERGING THE PHILIPPINE CARABAO CENTER AND THE NATIONAL
DAIRY
AUTHORITY INTO THE PHILIPPINE NATIONAL DAIRY DEVELOPMENT
AGENCY TO PROVIDE GREATER FOCUS ON THE ACCELERATED
DEVELOPMENT OF THE DAIRY INDUSTRY AND TO INCREASE
PRODUCTION
OF DAIRY ANIMALS IN THE PHILIPPINES, PROVIDING A RUMINANT
DEVELOPMENT FUND THEREFORE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Republic
Of the Philippines in Congress assembled.

SECTION 1. Title. This act shall be known as the "Dairy Development Act of 2017"

SECTION 2. Declaration of Policy. It is the declared policy of the State to promote the
development of the livestock industry in order to increase the supply of livestock and
livestock products and to attain greater self-sufficiency in food commodities from
ruminants as sources of supply of milk and dairy products.

Towards this end, the State aims to restructure and realign the government agencies
charged with the development of ruminants, by separating the regulatory functions from
the development missions of the said agencies and merging these separate groups of
functional role into the appropriate agency structures.

The State recognizes the primary role of the private sector in research, training,
production, processing, and marketing, and shall provide incentives and the needed
support to encourage these activities in the areas of production and processing Ruminant
meat and hide production as well as dairy products.

SECTION 3. Objectives. The objectives of this Act are as follows.

a) TQ ensure adequate supply and growth of meat, milk and dairy, and other
ruminants products at affordable prices and to promote and provide direction for
the accelerated development of ruminants as sources of draft animal power,
meat, milk and dairy, and hide products;

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b) To give support and assistance in the production, processing and marketing
activities of ruminants and dairy products. particularly rural based small farm

operators, farm operators, farm families. rural cooperatives and private corporate

enterprises through the provision of necessary support systems;

To formulate the long and short range programs calculated to achieve major self-

sufficiency, efficiency, and stability in food commodities of ruminant animal

origins;

To formulate and establish comprehensive support programs and_ policy

guidelines for the development of the ruminant livestock industry in all aspects in

order to make the industry productive and profitable under sustainable

environment through sound policies, programs, research and services on animal

production, post-harvest activities;

To coordinate with sources of production financing support, and marketing

assistance in order to boost the sustainability of ruminant animal and dairy

producers; and

f)To coordinate, integrate, and supervise all policies and programs of all government
agencies charged with the implementation thereof.

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d)

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SECTION 4. The Philippine Dairy Development Agency. The Philippine Carabao Center
created under R.A. 7307 and the National Dairy Authority, created under R.A. 7884 are
hereby merged and converted into Philippine Ruminants Development Agency (PRDA),
which shall be attached to the Department of Agriculture, and headed by an
Administrator.

The Agency shall be the central coordinating agency tasked to ensure the accelerated
development of the Philippine ruminant meat, hide and dary industries, in accordance
with the policies and objectives set forth in this Act.

SECTION 5. Powers and Functions or the PDDA. The PDDA shall have the following
powers and functions:

a) To conserve propagate and promote the ruminant animals as sources of draft
animal power, meat, milk and dairy, and hide products,

b) To enable the farmers, particularly small holder farmers and CARP beneficiaries
to avail themselves of good quality ruminant stocks at reasonable prices through
an organized program of production, breeding, training and dispersal;

c) To undertake training programs for farmers, particularly smallholder farmers and
CARP beneficiaries, designated to transfer technology on the proper care and
reproduction of the carabao and the processing of its meat and milk;

d) To provide updated information on varieties, prices, importation, propagation,
storage, distribution and sale of ruminants and dairy animals, semen, forage
seeds, fertilizers, veterinary supplies, dairy equipment and engineering supplies
and such other inputs,

e) To receive grants, subsidies, donations or contributions from corporations,
thrusts, foundations, associations and other sources from any private or
government office, agency or corporation in the Philippines or abroad;

f)To establish, maintain or operate field unites or offices in various parts of the
country in order to achieve the objectives of this Act.

SECTION 6. Transfer of Functions. All on-going programs and functions of the merged
agencies are hereby transferred to the PDDA Administrator is able to implement a

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rationalization and reengineering program to align their functions, programs and
activities to the objectives of this Act.

Any and all regulatory functions embodied in R.A. 7307 and R.A. 7884 are hereby
transferred to the Bureau of Animal Industry, created by Republic Act No. 3639 as
amended.

SECTION 7. PDDA Advisory Board. The PDDA Advisory Board shall be composed
of the following,

The PDDA shall be governed by and Advisory Board to be composed of:

a) Secretary of the Department of Agriculture as chairman:
b) Director of the Bureau of Animal Industry;

c) One farmer representatives for each among Carabao, Cattle, Goat and Dairy
producers; and

d) Administrator of PDDA, as Vice Chairman.

The PDDA Board shall and approve all the policies. systems, protocols and
organizational re-engineering of the Agency. It shall also affirm the development
programs that will be implemented by the Administrator.

SECTION 8. Exemption from Taxes and Duties. The Agency may, in behalf of
ruminant and dairy producer enterprises and cooperatives, import and shall be exempt
from the payment of customs duties and taxes on the importation of ruminants and dairy
animals, veterinary and other supplies r other farm inputs, dairy equipment and
machineries, research equipment, including its spare parts, for purposes of augmenting
and upgrading local stocks and breeders, subject to the following conditions

a) That the breeders are certified to upgrade and improve existing stocks;

b) That the dairy equipment and machineries, including its spare parts are not
manufacture domestically in sufficient quantity, of comparable quality and
reasonable prices; and

c) That it shall be actually, directly and exclusively used by the ruminant producer
enterprises and cooperatives in the production or manufacture of ruminant and
dairy products.

SECTION 9. Powers and Functions of the Administrator. Subject to the control and
supervision of the Advisory Board, the Administrator shall have the following powers and
functions:

a) Submit policy recommendations and proposed measures necessary to carry out
the objectives and functions of the Agency, for the consideration of the Board:

b) Recommend to the Board, for approval, an organizational structure, and plantilla
of personnel of the merged Agency, in accordance with existing laws, rules and
regulations;

c) Execute, administer and implement policies and measures approved by the
Board,


d) Submit to the Board, in line with the national budget cycle, an annual budget and
such supplemental budget as may be necessary for its consideration and
approval;

e) Represent the Authority in all its dealings with other persons, entities, agencies,
and institutions whether public or private, domestic or foreign, subject to the
limitations and conditions herein provided;

f) Appoint, subject to the confirmation of the Board, and discipline or remove for
cause in accordance with the civil service laws, rules fold regulations, the officers
and personnel of the Authority; and

8) Perform such other duties which may be assigned to him by the Board or by the
Secretary of the Department of Agriculture.

SECTION 10. Implementing Rules and Regulations. Within three months from the
effectivity of this Act, the Secretary of Agriculture shall form an ad hoc Task Force to be
composed of two representatives each from the merged agencies, from the cattle
producers, from carabao producers, goat producers and the local dairy industry to
formulate the Implementing Rules and Regulations within the ensuing period of three
months. Two representatives of the Congressional Commission on Agriculture and
Fisheries Modernization shall join the meetings of the ad hoc Task Force as observers.

SECTION 11. Appropriations. The appropriations of agencies. division, council and
corporation, merged, abolished or transferred pursuant to this Act shall be turned over to
the Agency. Thereafter, such sums as may be necessary for its continued operation and
maintenance shall be included in the annual General Appropriations

SECTION 12. Repealing Clause. R.A- 7307 and R.A. 7884 are hereby repealed
accordingly. All laws, decrees, executive's orders, rules and regulations 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 or invalid, other provisions thereof which are not affected thereby shall
Continue in full force and effect.

SECTION 14. Effectivity. This Act shall take effect after fifteen (15) days following its
Publication in the Official Gazette or in any newspaper or general circulation.

Approved.