SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES ) .
Second Regular Session ) 18 MAR 20( P4 56

SENATE Bill No, 1798 /

Introduced by SENATOR CYNTHIA A. VILLAR

AN ACT TO RESTRUCTURE AND RATIONALIZE THE LIVESTOCK INDUSTRY IN
ORDER TO STRENGTHEN ITS DEVELOPMENT, PROTECTION AND REGULATORY
FUNCTIONS, INCLUDING THE PROMOTION OF DAIRY AND NATIVE ANIMALS AND
TO PROVIDE FOR A LIVESTOCK DEVELOPMENT FUND, AND FOR OTHER
PURPOSES.

EXPLANATORY NOTE

The country has not been self-sufficient in many agricultural commodities, especially in
the livestock sector. Data from the Philippine Statistical Authority indicate that from 2010-
2015, the country imported a yearly average of 164,000 m.t. of pork, some 55,000 m.t. of
beef, 37,000 m.t. of carabeef, and 128,000 m.t. of dressed chicken. Roughly 22% of our
beeficarabeef, 9% of pork and 11% of the poultry are supplied by other countries. Over
95% of milk and dairy products in the Philippines are sourced from abroad. The country
imports between US$3-4 billion dollars of livestock commodities annually.

The Philippine livestock subsector urgently needs a boost and a reboot. For decades now,
it has received limited attention and developmental assistance from the government
because the major focus of Department of Agriculture has been mostly on rice and corn.
The occasional but limited of livestock dispersal programs have not been sustained
Budget support for livestock has been averaging at only 2% of the yearly appropriations
for agriculture. DA has not created a broad-based, organized, competitive livestock
industry in the country, except for those of a few large corporate livestock ventures.

The Bureau of Animal Industry (BAI) has not been focused on its developmental support
functions. It was created in 1930 with the primary goal to “investigate, study and report the
cause of dangerous communicable diseases and the means of prevention, and in general,
promote the development of the livestock industries... by improvement of breeds... and
collection and compilation of statistics on domestic animals;...dissemination of useful
information on all essential matters regarding domestic animals.”


Subsequent legislation and administrative orders gave the agency additional roles such
as: Republic Act No. 1556 - to “regulate and control the manufacture, importation, labeling,
advertising and sale of livestock and poultry feeds”, Presidential Decree No. 34 - to
“regulate the granting of tax free importation for breeder animals”. The Bureau claims
some of its mandates from - but without any direct mention of the agency in - the following
laws: Republic Act No. 9729 or the Climate Change Act of 2009; Republic Act No. 10631
or the Animal Welfare Act of 1998.

Even the Agriculture and Fisheries Modernization Act (AFMA) of 1997 mention the Bureau
of Animal Industry only in the context of privatization of its assets. This was corrected only
under Executive Order No. 338 series of 2001, which enumerated under the spirit of the
AFMA a more detailed set of roles and functions for the BAI. Still, EO 338 remained
primarily focused on research and development and on regulation.

In short, all these decades, there has been no primary agency mandated to support the
development of our livestock industry.

The regulatory functions under the Bureau of Animal Industry and the National Meat
Inspection Commission are already well defined and need not be disturbed but the other
roles of the BAI should be enhanced and supported in order for it to be an effective
developmental support agency for the livestock sector, especially among the small hold
farmers and backyard livestock growers.

The BAI shall henceforth provide stronger focus on industry development, helping upgrade
industry's forward and backward linkages, and boosting conditions of players in the value
chain in terms of farm technologies, logistics, financing, processing and overall capability
building.

This Senate bill will spur the rise of the livestock sector as a key production growth driver
in the economy, a significantly important segment of the agriculture, and a major provider
of employment in the country-sides.

The approval of this bill is urgently requested

Senator



SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session )

SENATE Bill No. 1'758 RECEI Lt vlad

Introduced by SENATOR CYNTHIA A. VILLAR

AN ACT TO RESTRUCTURE AND RATIONALIZE THE LIVESTOCK INDUSTRY IN
ORDER TO STRENGTHEN ITS DEVELOPMENT, PROTECTION AND REGULATORY
FUNCTIONS, INCLUDING THE PROMOTION OF DAIRY AND NATIVE ANIMALS AND
TO PROVIDE FOR A LIVESTOCK DEVELOPMENT FUND, AND FOR OTHER
PURPOSES.

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

SECTION 1. Title. - This Act shall be known as the “Livestock Industry Development Act
of 2018”.

SECTION 2. Declaration of Policy. - It is hereby the declared policy of the State to
promote the development and competitiveness of the livestock industry particularly the
backyard raisers in order to increase the supply of meat, poultry, dairy, eggs and other
livestock products, improve the domestic supply of breeders and attain greater self-
sufficiency in food and other livestock commodities. It is likewise the policy of the State to
improve the incomes of farmers and farm workers, through improved productivity, product

diversification, job generation, and increased efficiency of the livestock industry.

Towards this end, the State aims to provide for enabling environment for the development
of a more responsive government policies, support programs and the agencies charged
with the development of livestock sub-sectors, by separating the regulatory functions from
the development missions, rationalizing the roles and right-sized structures. The State
shall provide: (a) productivity improvement programs; (b) infrastructure and common
service facility support; (c) research and development for animal food, disease prevention

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and animal health, propagation and genetic resource development and enterprise
development, among others; (d) technical and extension services; and (e) financial

assistance to small farmers.

The State recognizes the primary role of the private sector as partners in the various facets
of the livestock industry and shall provide incentives and the needed support to encourage
these activities.

SECTION 3. Philippine Livestock Development Goals - This act seeks to (1) to ensure
the adequate supply of meat, poultry and eggs, milk, breeders, other livestock products at
affordable prices; (2) to provide production support to backyard farmers to increase farm
productivity and competitiveness; and (3) to establish livestock-based enterprises; (4)
poverty alleviation and increase farmer's income and (5) the promotion of livestock farmers
organization.

SECTION 4. Definition of Terms. As used in this Act, the following terms and phrases

shall mean as follows
a) Department - shall refer to the Department of Agriculture

b) Livestock - refers to any domestic or domesticated animal that is grown, kept or
raised in captivity for food or in the production of food or other by-products,
regardless of age, location or purpose of breeding. This includes all domestic
animals that are slaughtered for human consumption, maintained for draft animal
power, and for recreational purposes, such as but not limited to cattle, carabaos,
buffaloes, horses, sheep, goats, hogs, deer, rabbits, ostrich and poultry; among
others. Products of hunting or fishing of wild animals shall not be considered part
of this definition.

c) 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

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environment and are products of selection with no infusion of exotic breed for at
least five (5) generations, including but not limited to native chicken, goats,pigs
ducks, cattle and horses.

d)

Stock Farms - refers to the network of stock and breeding farms and facilities
owned and operated by the Bureau of Animal Industry for the purpose of

demonstration of livestock farming technologies.

e)

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.

f) Smallholder Farmer - refers to a farmer owning or cultivating five (5) hectares or
less of farmland.

Section 5. Philippine Livestock Development Framework. The Bureau of Animal
Industry in coordination with the Department of Agriculture (DA), Department of Science
and Technology (DOST), Department of Environment and Natural Resources (DENR),
livestock growers’ cooperatives and backyard raisers’ organizations, animal health care
practitioners, and the Local Government Leagues, shall formulate a ten-year Framework
for Livestock Development to be validated and updated annually. Such Framework shall
‘serve as guide to the formulation and implementation of plans, programs and projects for
the propagation, utilization and development of the livestock industry, including Philippine
Native animals, as envisioned in this Act. The Framework shall likewise provide for the
following:

a) Investment Promotion and Credit Access - The DA shall develop programs
establishing links between stakeholders in the livestock industry and Government
Financial Institutions (GFls) and other financial cooperatives. The DA, through the

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BAI, shall likewise develop and implement programs that would establish
reasonable and innovative investment incentives to attract more players in the

native animal industry;

'b) Production Support, Training and Extension - The DA, through the BAI, in
consultation with DOST, state universities and colleges, the Agricultural Training
Institute (ATI), TESDA Accredited Farm Schools and other relevant government
agencies shall establish programs which shall promote and provide adequate
trainings on adapting technologies to the farmers or individuals engaged in the
propagation, utilization, marketing, processing and distribution of livestock, dairy
and native animals; and afford opportunities for participation in international
conventions, workshops and for a. The DA shall likewise make good quality
breeders readily available to farmers and farmers’ cooperatives to ensure high yield
and high profit;

c) Research and Development - The DA, through the BAI, and the Bureau of
Agricultural Research (BAR) shall strengthen research collaborations among state
universities and other research institutions for technical support in the areas of
genetic resource improvement programs, pasture seeds and crops for animal food
and other fields that promote the development and competitiveness of the livestock

industry, especially native animals.

d) Market Promotion Programs - The DA shall strive to strengthen its Livestock
Program and other similar programs in the promotion and development of backyard
livestock and dairy enterprise including that of native animals through the DA-
Agribusiness and Marketing Assistance Service (AMAS) including provision for
livestock auction markets and price monitoring of supply and demand. The DA shall
also coordinate with the Department of Trade and Industry (DTI), link-up
agribusiness cooperatives and organizations directly with consumers' cooperatives

and organizations including export.



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€) Food Safety and Quality Assurance - To ensure public health and proper
handling of livestock products, the DA, together with the National Meat inspection
Service (NMIS) and the Bureau of Food and Drugs (BFAD), shall establish and
enforce standards of hygiene in propagating, processing, grading, sampling, tests
and analysis, specifications, nomenclature, inspection, processing, conservation,
utilization and transportation of Philippine livestock, dairy products and for native
animals including environmental management program for disposal and utilization

of animal waste;

f) Infrastructure Development - The DA shall facilitate the provision and/or
installment of needed provision for slaughter houses and abattoirs including
community hatcheries facilities, and other facilities in the propagation, processing,

utilization and development of native animals.

g) Animal Health and Welfare- to promote animal health, welfare and preservation,
the DA-BAI shall facilitate the availability of biotechnology techniques at a
commercial scale to farmers and livestock raisers. This shall include artificial
insemination service (Al) and the implementation of veterinary health services,
livestock feeds development centers, and biologics. Included in this shall be the
provision for surveillance, vaccination, animal movement control and management

and public awareness campaign.

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

SECTION 6. Merging of Service Groups in the Bureau of Animal Industry. The
following six Services are hereby established way of merging and consolidating the 21

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existing divisions in the Bureau of Animal Industry and absorbing rationalizing three other

agencies, to wit:

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

« Animal Feeds, Veterinary Drugs and Biologics Control Division
(AFVDBD)

© Animal Health and Welfare Division (AHWD)

¢ Livestock Research and Development Division (LSD)

Livestock Regulatory Service shall provide regulatory, monitoring and
enforcement services as mandated under prior laws, including Act 3101 (1923),
Act 3639 (1930), R.A. 1071, R.A. 1556, P.D. 34 section 105(r), Administrative
Code of 1987, RA 8485, and RA 9482.

The new Service shall continue to serve as the controlling authority on all
policies, regulations, guidelines and standards pertaining to meat and meat
products, meat handling, safety, quality, hygiene, and sanitation, including:
establishing safety and quality standards for meat and meat products;
inspection - in coordination with local government units - of meat
establishments engaged in slaughter, processing, and domestic and
international meat trade; registration and licensing of meat inspectors, meat
handlers meat brokers, meat products processing establishments; and
accreditation of facilities, conveyances and service providers for Hazard
Analysis Critical Control Point Program (HACCP) audit as well as compliance

to hygiene and sanitation standards.



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b) Livestock Industry Development Service - The Livestock Research and
Development Division, Marketing Development Division, and Research
Development Division, National Swine and Poultry Research and Development
Center, International Training Center for Pig Husbandry (ITCPH) of the
Agriculture Training Institute, National Beef Cattle Research and Development
Center, National Feeds Resources Research and Development Center,
National Small Ruminants Research and Development Center shall be merged
to become the Livestock Industry Development Service, together with the
powers, responsibilities, organization and personnel, assets, and functions of

their offices, units, and services, subject to further rationalization.

The Livestock Industry Development Service shall coordinate the formulation
and implementation of policies, programs, and roadmaps that will hasten and
sustain the development of the livestock and native animal sub-sectors.

¢

Philippine Native Animal Development Service — The Philippine Native
Animal Development Center is hereby upgraded to become the Philippine
Native Animal Development Service (PNADS), which shall be responsible for
the 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 and available food for farmers.

To promote the propagation, processing, utilization and development of
Philippine native animals, there shall be created in each of the three major
island groups at least one native animal development center, to be known as
the Philippine Native Animal Development Center for Luzon, Visayas and for
Mindanao, respectively, to ensure the distributed implementation of native

animal policies and development programs.



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d) National Dairy Development Service. There is hereby created the National
Dairy Development Service (NDDS) which shall assume the functions,
mandates, personnel and assets of the Philippine Carabao Center, created
under R.A. 7307. The PCC shall cease to be a government-owned and
controlled corporation and transformed as the NDDS. The NDDS shall expand
its mandate of formulating, implementing and managing carabaos to include
cows and small ruminants, with the end in view of increasing milk production in

the Philippines.

The National Dairy Authority, created under R.A. 7884, is hereby abolished and
its on-going programs, and assets transferred to the the National Dairy
Development Service (NDDS).

e)

Philippine Livestock Protection Service. The following units of the BAI are
hereby merged and consolidated to become the Philippine Livestock Protection
Service, together with the powers, responsibilities, organization and personnel,
assets, and functions of their offices, units, and services, subject to further
rationalization, to wit:

¢ National Veterinary Quarantine Services (NVQS)
© Philippine Animal Health Center (PAHC)
© Animal Health Division (AHD)

The PLPS shall be responsible for programs, policies, surveillance and
emergency action to protect the livestock industry from diseases and outbreak
of infestation and shall have the following powers and functions:

1. Livestock Protection Surveillance, including regular Surveillance
Inspections in partnership with industry players and LGUs, coordination with

counterpart offices in other countries as well as UN food agencies, and

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organizing the Livestock Protection Surveillance Network at the provincial
levels in partnership with LGUs, livestock producers, and other industry
stakeholders;

. Conducting Research and Development programs through partnering with

SUCs, ATI for capability building programs, partnering with private sector
laboratories, Barangay-based farmer/stakeholder livestock protection
networks, and Provincial Agriculturists Emergency Communications
Network;

|. Pest and Disease Emergency Response, by way of developing protocols

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

SECTION 9. Authority in Livestock Pest-related Emergencies. With the PLPS as its
implementing arm, the Bureau of Animal Industry is hereby designated as the overall

coordinating government body in the event of any livestock infestation or epidemic. The

PLPS shall have the authority to call for the creation of an animal and livestock emergency

response task force (ALERT-TF) to be composed of key officials at the regional level from

the following agencies:

1.

2.
3.

Department of Agriculture- Regional Office

Department of Interior and Local Government - Regional Office
Philippine National Police -- Regional Command

. Provincial governor and/or Provincial Agriculturist

. Congressional Representative of the affected district

Mayors of the affected municipalities/cities

. Science experts on the case



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SECTION 10. Transfer of Supervision and Functions. All on-going programs and
functions of the merged and re-grouped divisions and centers, including the NDA and PCC.
are hereby transferred to the BAI Service offices above created, but shall continue to be
operational until such time as the Bureauhead is able to implement a rationalization and
reengineering program to align their functions, programs and activities to the objectives of
this Act.The affected personnel who may opt for early separation shall be entitled to
receive separation benefits equivalent to two months of salaries for every year of service

in government.

The BAI stock farms and research centers in Gen. Tinio, Nueva Ecija; Tiaong, Quezon;
Lipa, Batangas; Busuanga, and Coron in Palawan; Dumarao, Capiz; Milagros in Masbate;
Malaybalay, Bukidnon; and the two separate forage centers/stations in
Labangan,Zamboanga del Sur shall be transferred under the care and administrative
supervision of the relevant divisions of the Livestock Industry Development Service to
primarily serve the needs of small-hold farmers as the base locations for purposes of
human resource development in the livestock sector, livestock breeding, extension work,

demonstration activities, and trade and promotion activities.

SECTION 11. Exemption from Taxes and Duties. - The BA! shall be the focal office on
the upgrading of breeders and may, in behalf of livestock, poultry and dairy producer
enterprises and cooperatives, import and shall be exempt from the payment of customs
duties and taxes on the importation of livestock and dairy animals, veterinary and other
supplies, other farm inputs, dairy equipment and machineries, research equipment,
including its spare parts, provided that these are certified and monitored, and accounted
forin terms of augmenting and upgrading local stocks and breeders of small farmers,

subject to the following conditions:

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

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b) That it shall be actually, directly and exclusively used by the producer
enterprises and cooperatives in the production of livestock and/or manufacture

of livestock by-products; and

c) That a quarterly monitoring report shall be made over a two-year period on the

Status of the imported livestock and materials.

SECTION 12. Mandated Appropriations. — On top of the existing budgets of the relevant
agencies and units of the BAI, the amount of P500 million shall be appropriated as funds
for the reorganization and restructuring, initial operations and programs of the agency, to
be set aside from the current agriculture development funds under the Office of the
Secretary. The appropriations of agencies, divisions that have been merged, abolished or
transferred pursuant to this Act shall be turned over to the BAI. Thereafter, such sums as
may be necessary for its continued operation and maintenance shall be included in the
annual General Appropriations Act, provided that, henceforth, the budget share of the
livestock sector shall not be lower than fifteen percent (15%) of the total appropriations for
the Department.

In addition, the Department of Budget and Management (DBM) is hereby mandated to
include annually, starting the year 2016, an initial aggregate amount of Two billion pesos
(P5,000,000,000.00) in the President's program of expenditures for submission to
Congress and allocated, as follows:

(a) Fifteen percent (15%) for grants to Livestock Common Service facilities that

shall serve livestock growers within each province;

(b) Fifteen percent (15%) for socialized credit under the Small Livestock Farm
Support and Modernization Programs;

(c) Fifteen percent (10%) for research and development, capability building and
technology transfer activities under Research and Development, Extension
Services, Human Resources Development, and Farm Support Programs;



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(d) Ten percent (5%) for marketing and trade fair support and assistance for

organized groups of small farmers at the provincial and regional levels;

(e) Five percent (5%) for scholarship grants and Human Resource Development;
(f) Regulatory Services (30%) and

(f) Forty percent (20%) for infrastructure support programs.

SECTION 13. Implementing Rules and Regulations. Within thirty days (30) from the
date of approval of this Act, the Secretary of the Department of Agriculture shall convene
the members of the Livestock Development Advisory Board to 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 and policy recommendations and proposed measures
necessary to carry out the objectives and functions of the Bureau and the Service

offices;

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 Bureau's annual budgets in line with the national budget cycle; and

c) A proposed rationalization program to update the organizational structure, and
plantilla of personnel of the Service office, in accordance with existing laws, rules
and regulations, including the early separation benefits for those whose positions
may have to be abolished.

SECTION 15. Repealing Clause. -A|l laws, decrees, executive orders, rules and
regulations or parts thereof which are inconsistent with this Act are hereby repealed or
modified accordingly.



SECTION 17. Separability Clause. - \f 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 18. Effectivity. — This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or in any newspaper of general circulation.

Approved