Sponsorship Speech of Senator Cynthia A. Villar
on Senate Bill No. 2558 or the Livestock, Poultry, and Dairy Industry Development and Competitiveness Act

Mr. President, esteemed colleagues, and fellow advocates for the agriculture sector, good afternoon!

As Chairperson of the Committee on Agriculture, Food and Agrarian Reform, I stand before you today to sponsor a piece of legislation which I undoubtedly believe is crucial towards unlocking the immense potential of our livestock, poultry, and dairy industry and ensuring the sustainable growth and development of our agriculture sector.

I am pleased to sponsor Senate Bill No. 2558 under Committee Report No. 193 or "An Act StrengtheningLivestock, Poultry, and Dairy Industry Development and Competitiveness, Rationalizing the Organization and Functions of Relevant Government Agencies, and Creating a Competitive Enhancement Fund Therefor". This is the product of the two public hearings, three technical working group meetings, and several consultative meetings which our Committee conducted together with the Committees on Finance, and Ways and Means. It is a 32-page substitute bill for Senate Bill Nos. 119, 792, 972 and 999 respectively filed by this Representation, Senators Jinggoy Ejercito Estrada, Lito Lapid, and Sonny Angara.

Mr. President, in sponsoring this measure, we endeavor to advance the development and competitiveness of the livestock, poultry, and dairy or the LPD industry. The industry plays a vital role in ensuring our food security and accounts for more than a quarter of the agricultural sector's output in 2023. It stimulates economic growth especially in rural areas and provides livelihood opportunities to more than 2.8 million livestock and poultry farmers.

Despite its importance, the LPD industry faces several challenges that hinder it from realizing its full potential.

We know too well of the effect of disease outbreaks such as the African Swine Fever or ASF which has been afflicting our hog industry and decimating our pork supply since 2019. This has resulted in a significant increase in the prices of pork products. In recent years, we also had to rely on imported poultry to address the shortfall in chicken production amidst increasing demand. Filipinos actually spend more for meat compared to our neighbors as the average prices of chicken and pork are more than twice as high in the Philippines than in Thailand and Vietnam.

Pork and chicken are integral components of the Filipino diet, helping ensure a balanced intake of nutrients. It is estimated that 52.0 percent of our protein consumption comes from pork and chicken, and this is projected to grow even higher to 58.0 percent in 2030. Thus, high meat prices could lead to protein deficiency and contribute to malnutrition. It could even affect our learning outcomes. In fact, as per the findings of the Organization for Economic Cooperation and Development or OECD's Programme for International Student Assessment or PISA, students from countries with higher pork and chicken prices tend to have lower test scores.

The Philippines is likewise struggling with dairy production and is heavily dependent on imported milk. There are very few commercial farms in the country and dairy production is mostly by backyard operators. In 2022, the National Dairy Authority or NDA's domestic dairy production was merely 30,028 metric tons or less than one percent of the total milk supply in the country. According to a 2022 study of the Philippine Institute for Development Studies or PIDS, our dairy productivity falls below those of major dairy milk exporters in the region. The Philippines produces on average only 6.8 liters of milk per animal per day versus Vietnam's 24.2 liters per animal per day.

One of the major reasons that have led us to this situation is the highly fragmented government support structure overseeing the LPD industry. The various agencies and bodies tasked with looking after the concerns of the sector include the Bureau of Animal Industry (BAI), the DA's Livestock Program, the National Dairy Authority (NDA), the National Meat Inspection Service (NMIS), and the Philippine Carabao Center. This fragmentation has resulted in uncoordinated policies and efforts in developing the competitiveness of the LPD industries. A study by the PIDS (Briones, 2022), has suggested that a single entity over the LPD sector, by consolidation of related units and agencies in the national government can help focus efforts and attain a unified perspective on industry development.

Moreover, when compared to other agricultural commodities, the LPD sector historically receives relatively lower development assistance from the government. Computations by the PIDS show that from 2009 to 2020, fiscal support for the LPD sector averaged only PhP 1.18 billion per year, accounting for merely 1.6 percent of the total budget of the DA for the period. While this amount has risen in recent years, with the National Livestock Program receiving PhP 3.4 billion in the 2024 NEP, this is still a relatively small amount when compared to other commodity banner programs of the DA.

With our country's growing population and increasing demand for food, we cannot allow for this situation to continue. Through Senate Bill No. 2558, we will set a clear and strategic direction for the LPD industry, strengthen the organizational structure and institutional capacity of relevant agencies and ensure that adequate resources are provided to support the growth and competitiveness of the industry.

First, this measure aims to put in place a Philippine LPD Value Chain Development Roadmap which shall serve as a guidepost in the priority setting for the development, modernization, protection, and promotion of the LPD industry. Anchored on achieving the twin goals of attaining food security and combating rural poverty, the 10-year roadmap shall set the strategic direction and key initiatives of concerned LPD agencies through specific programs.

A Steering Committee that will formulate the Roadmap shall be created, with the Secretary of the Department of Agriculture as the head,relevant government agencies and industry stakeholders as members, and a Project Management Office or PMO as the secretariat and support staff. The Roadmap shall be finalized within 120 days from the effectivity of this legislative measure and updated every five years thereafter.

Second, the Office of the Undersecretary for the National Livestock, Poultry, and Dairy (NLPD) Program shall be created to establish policies for the development of the LPD industries particularly those in small-hold farms. The said office shall oversee, supervise, direct and provide policy guidance in the implementation of the Roadmap and all programs and agencies under it.

Third, to avoid fragmented systems, the proposed measure shall strengthen existing government organizational structures serving the LPD industries. The bill provides for their rationalization, places them under the supervision and direction of the Undersecretary of the NLPD Program and clarifies their primary goals and functions. Under this bill:

1. The Bureau of Animal Industry or BAI shall be the implementing arm of the NLPDP for its livestock and poultry development programs and projects. It shall be the overall coordinating government body in the event of any LPD pest or epidemic incident that could potentially reduce the LPD population or production at the municipal level by at least two percent (2%). In this regard, the BAI is authorized to call for the creation or activation of the Animal and Livestock Emergency Response Task Force or ALERTF;

2. The National Meat Inspection Service or NMIS shall be converted into a line bureau of the DA and be renamed as the Bureau of Animal and Poultry Inspection and Regulation or BAPIR. It shall serve as the regulatory arm of the livestock and poultry industries and will ensure the quality standards of imported live animals and poultry, production and processing, and food safety of primary and processed livestock and poultry produce. The BAPIR shall likewise work with the Bureau of Customs or BOC towards the implementation of the National Single Window as a reliable institutional platform for inter-agency collaboration;

3. The Animal Feeds, Veterinary Drugs and Biologics Council Service or AFVDBCS under the BAPIR shall become the sole regulatory agency over veterinary drugs and products, and other related animal health products and devices, including the licensing and monitoring of veterinary drugs and products establishments. Thus, all regulatory processes for veterinary drugs and products, and other animal health products and devices being handled by other agencies such as the Food and Drug Administration or FDA shall be transitioned to the AFVDBCS within 90 days from the effectivity of this legislative measure;

4. The National Dairy Authority or NDA shall be the central policy determining, developmental and regulatory body tasked to ensure the accelerated development of the dairy industry. It shall be the sole regulatory agency over all dairy activities and products. In this regard, all regulatory powers and functions lodged in other agencies such as the FDA shall be transferred to the NDA within 90 days from the effectivity of this measure and lastly,

5. The Philippine Carabao Center shall develop holistic programs that address the needs of farmers, their cooperatives and organizations in the different aspects of dairy farm management. It shall likewise institute a program on distribution of dairy animals to qualified farmers for breeding, with close monitoring on the increase in population of reproduced animals.

To enable timely, accurate and responsive decision-making, there shall be a Livestock, Poultry and Dairy Management Information System. It shall be the repository of all information that are relevant to LPD industries down to the municipal level. This includes supply and demand data, crop and non-crop animal feed inputs data, animal feed data, and price and price trends, among others. Moreover, there shall be an annual inventory and audit of all animals and stocks.

Lastly and most importantly, this proposed measure provides for the creation of the Livestock, Poultry, and Dairy Competitiveness Enhancement Fund or the LPD Fund. Building on the model of the Rice Competitive Enhancement Fund or RCEF established under Republic Act No. 11203 or the Rice Tariffication Law, tariff collection from LPD imports will be earmarked to the LPD Fund. It shall consist of an annual appropriation of PhP7.8 billion for six (6) years.

This amount will be utilized by the relevant agencies, on top of their respective annual budgets. The beneficiaries of the fund are small-hold raisers, cooperatives, associations or organizations accredited by the Department of Agriculture. An LPD Registry System, the master list of eligible beneficiaries will be established by the DA in consultation with farmer cooperatives and LGUs.

Each year, the LPD Fund of PhP 7.8 billion will be allocated, disbursed and utilized as follows:

1. Twenty-nine percent (29%) for repopulation and herd build-up, improvement and accreditation of established breeding centers/stock farms nationwide;

2. Fifteen percent (15%) to BAI for animal health and welfare, and native animal development programs, disease control, prevention and response, including protective surveillance, pest and disease emergency response, and conduct of research and technology advancement programs;

3. Fifteen percent (15%) to the Philippine Center for Postharvest Development and Mechanization or PhilMech for building or improving shared service facilities such as slaughterhouses, poultry dressing plants, collection of dairy milk, processing and storage, for the distribution of equipment for developing pasture lands in strategic areas or provinces, and building of bio-secure facilities with appropriate equipment for LPD production

4. Fifteen percent (15%) for developing and augmenting food safety and animal support extension and training;

5. Twelve percent (12%) to be equally divided at four percent (4%) each by the BAI-Feeds Development Service, NDA and PCC for the development and propagation of animal and poultry feeds, forage and fodder, particularly by providing seeds and planting materials, and ensuring easy and affordable access to small-hold farms;

6. Five percent (5%) to the Land Bank of the Philippines and the Development Bank of the Philippines, to be managed equally and made available in the form of credit facility for the improvement of breeders and stocks through the purchase of breeders, growers, multipliers, feeds, and genetically improved stocks, establishment of animal housing, and purchase of livestock, poultry and dairy farm equipment, with the least of interest rates and documentary requirements;

7. Three percent (3%) to the Office of the Undersecretary for the NLPD Program, to be divided at two percent (2%) for planning, formulating, updating the Roadmap, monitoring activities, and impact assessment studies; and one percent (1%) for use in the establishment and operation of the Livestock, Poultry and Dairy Management Information System (LPDMIS);

8. Three percent (3%) to the DA-Agribusiness and Marketing Assistance Service for marketing and trade promotion activities to benefit livestock, poultry and dairy raisers;

9. Two percent (2%) to be divided between the BAI-Livestock Research and Development Division (1%) for farm school-based and/or industry-driven research and development programs, as well as for support to technology transfer and commercialization programs and projects, and one percent (1%) for PCC; and finally,

10. One percent (1%) to the Cooperative Development Authority for the accreditation of small-hold livestock, poultry, and dairy raisers, into formal groups, cooperatives, or organizations.

To find out whether the Fund is reaching the intended beneficiaries and whether the NLPD program is achieving its intended objectives, we are tasking the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM) to conduct a mandatory review and our state thinktank, the PIDS to do an impact evaluation of the program.

It is my hope that through these efforts, we would be able to provide adequate support to our raisers and farmers, boost our domestic production capabilities and improve the competitiveness of our LPD industry. This would help ensure a steady supply of quality and affordable meat and milk products for everyone, everywhere, everyday and even during emergencies.

At this juncture, I would like to personally extend my sincerest thanks to Senator Francis "Tol" Tolentino, Senator Robinhood Padilla and the Minority Leader Senator Aquilino "Koko" Pimentel III for attending the public hearings that we conducted last year. I also express my deep gratitude to the members of the Committee on Agriculture, Food and Agrarian Reform and the Committees on Finance and Ways and Means respectively headed by Senator Juan Edgardo "Sonny" Angara and Senator Sherwin "Win" Gatchalian for their support to this bill.

Mr. President, my dear colleagues, this piece of legislation represents a pivotal opportunity for us to ensure that we can continue to feed our growing population at present and in the future. It is an intervention that could bolster the growth of our agriculture sector, generate employment and improve the well-being particularly of those in rural communities. Let us come together and pass this Livestock, Poultry, and Dairy Industry Development and Competitiveness Act.

Thank you very much, Mr. President!