Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS “NICK” C. ENCISO VIII 
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. The 
Department of Agriculture (DA) sees the development of the dairy industry as a vital tool 
in combatting malnutrition and poverty and has therefore laid out its plans for the dairy 
industry through its Philippine Dairy Industry Roadmap Development (2020-2025).  
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. A report published by 
Global Agricultural Information Network revealed that around 99% of our dairy products 
are sourced from abroad, citing that the Philippines was the sixth largest market for U.S. 
dairy products by value at $273 million, as of 2019.1 
There is a need for a strong thrust for the development of the dairy industry. A 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 the 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 in 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 machinery without affecting the funds to be used for the 
agencies' functions. 
1https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Dairy%20and%20Products%20A
nnual_Manila_Philippines_10-15-2020 
August 23, 2022
2:00 pm
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In view of the foregoing, the immediate passage of this bill earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
MIGUEL LUIS R. VILLAFUERTE  
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS “NICK” C. ENCISO VIII 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA 
AND HON. NICOLAS “NICK” C. ENCISO VIII 
AN ACT 
OF 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. Short Title. – This act shall be known as the "Dairy Development Act." 
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. 
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a) 
To 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; 
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; 
c) 
To formulate the long and short range programs calculated to achieve major self-
sufficiency, efficiency, and stability in food commodities of ruminant animal origins; 
d) 
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; 
e) 
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. 
 
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 dairy 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, 


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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 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. 
 


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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; 


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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 
g) 
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,