Creation of the Animal Competitiveness Enhancement Fund.
SEC. 15. Creation of the Animal Competitiveness Enhancement Fund. - In addition to the regular budget of the livestock agencies, there is hereby created the Animal Competitiveness Enhancement Fund (AnCEF).
The AnCEF shall consist of an annual appropriation of Twenty billion pesos (P20,000,000,000.00) from tariff collections from livestock, poultry, and dairy following the effectivity of this Act and ten (10) years thereafter.
Livestock imports include imported products under the following Harmonized System (HS) headings or ASEAN Harmonized Tariff Nomenclature (AHTN) Codes, and Descriptions:
(a) 01.01 - Live horses, asses, mules and hinnies;
(b) 01.02 - Liv bovine animals;
(c) 01.03 - Live swine;
(d) 01.04 - Live sheep and goats;
(e) 01.06 - Other live animals, except 0106.12;
(f) 02.01 - Meat of bovine animals, fresh or chilled;
(g) 02.02 - Meat of bovine animals, frozen;
(h) 02.03 - Meat of swine, fresh, chilled or frozen;
(i) 02.04 - Meat of sheep or goat, fresh, chilled or frozen;
(j) 02.05 - Meat of horses, asses, mules or hinnies, fresh, chilled or frozen;
(k) 02.06 - Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen;
(l) 02.08 - Other meat and edible meat offal, fresh, chilled or frozen;
(m) 02.09 - Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked;
(n) 02.10 - Meat and edible meat offal, salted, in brine, dried or smoked, edible flours and meals of meat or meat offal;
(o) 04.09 - Natural honey;
(p) 04.10 - Edible products of animal origin, not elsewhere specified or included;
(q) 05.02 - Pigs', hogs', boars', bristles and hair; badger hair and other brush making hair; waste of such bristle or hair;
(r) 05.04 - Guts, bladders and stomachs of animals (other than fish), whole and piece thereof, fresh, chilled, frozen, salted, in brine, dried or smoked;
(s) 05.06 - Bones and horn-cores, unworked, defatted, simply prepared (but not cut to shape), treated with acid or degelatinised; powder and waste of these products; and
(t) 05.07 - Ivory, tortoise-shell, whalebone and whalebone hair, horns, antlers, hooves, nails, claws and beaks, unworked or simply prepared but not cut to shape; powder and waste of these products;
Poultry imports include imported products under the following HS headings or AHTN Codes, and Descriptions:
(a) 01.05 - Liv poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls;
(b) 02.07 - Meat and edible offal, of the poultry of heading 01.05, fresh, chilled or frozen;
(c) 0209.90.00 - Pig fat, free of lean meat and poultry fat, not rendered or otherwise extracted, fresh, chilled, frozen, salted, in brine, dried or smoked - - Other;
(d) 0210.99.10 - Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal - - Freeze dried chicken dice;
(e) 04.07 - Birds' eggs, in shell, fresh, preserved or cooked;
(f) 04.08 - Birds' eggs, not in shell,, and egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter; and
(g) 0410.00.10 - Edible products of animals origin, not elsewhere specified or included - - Birds' nest.
Dairy imports include imported products under the following HS headings or AHTN Codes, and Descriptions:
(a) 04.10 - Milk and cream, not concentrated not containing added sugar or other sweetening matter;
(b) 04.02 - Milk and cream, concentrated or containing added sugar of other sweetening matter;
(c) 04.03 - Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa;
(d) 04.04 - Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included;
(e) 04.05 - Butter and other fats and oils derived from milk; dairy spreads; and
(f) 04.06 - Cheese and curd.
All tariff collections from livestock, poultry, and dairy shall be automatically credited to the AnCEF special account in the General Fund which shall be place within forty-five (45) days from the effectivity of this Act: Provided, That if the tariff collection exceeds Twenty billion pesos (P20,000,000,000.00) in any given year within the next ten (10) years following the effectivity of this Act, the excess tariff revenue shall be earmarked and allocated towards direct financial support programs for farmers, including recovery and compensation programs and support to those affected by biosafety threats, participants of the livestock, poultry, and dairy value chain, and to Filipino consumers, and towards the capitalization of the NDA in the succeeding General Appropriations Act: Provided, further, That allocation and utilization of the AnCEF shall be subject to the following guidelines:
(a) The recipient agency shall be accountable and responsible for the management and utilization of the said fund in coordination with the government agencies concerned. It shall provide the DA Secretary, through the Administrator of the BAI, a regular report on its fund management and utilization;
(b) The amount allocated shall be released directly to the implementing agencies as provided in this Act based on the objectives and plans of the National Animal Industry Development Plan (NAIDP): Provided, That the unutilized portion of the AnCEF 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 said fund shall not be subject to any ceiling by the DBM; and
(c) Any program undertaken in accordance with this Act shall be in addition to any existing government programs for the livestock sector.
Allocation and Disbursement of the AnCEF.
SEC. 16. Allocation and Disbursement of the AnCEF. - Subject to the usual accounting and auditing rules and regulations, the AnCEF shall be annually allocated, disbursed, and used as follows:
(a) Twenty-six Percent (26%) for repopulation and herd build-up, and improvement and accreditation of established breeding centers/stock farms nationwide based on the NAIDP. The fund shall be allocated to the BAI and distributed as follows:
(1) Seventy percent (70%) for poultry;
(2) Twenty percent (20%) for poultry;
(3) Five percent (5%) for native animals; and
(4) Five percent (5%) for other animals:
Provided, That the breeder/stock farm for paragraphs (1) and (2) shall refer only to cooperatives or association of at least fifteen (15) hog/poultry farms, which have been in existence for at least five (5) years. They should have a counterpart contribution of at least a two(2)-hectare lot for said breeder/stock farm: Provided, further, That paragraphs (3) and (4) shall be coursed through the nucleus farms of the BAI all over the country, equally divided, which in turn shall be responsible in producing animals such as, but not limited to, pigs, chickens, sheep, goats, and cattle, and to be distributed to farmers cooperatives, associations, and/or organizations: Provided, finally, That the first two (2) years of the fund allocation for paragraphs (3) and (4) shall be utilized in strengthening the physical make-up of the nucleus farms and in the procurement of breeder/stock animals;
(b) Seven percent (7%) to be divided equally between the PCC (3.5%) and the NDA (3.5%) for herd build-up in accordance with their additional budget allocations: Provided, That the allocation herein shall be disbursed according to the following schedule:
(1) Seventy percent (70%) for genetically improved dairy cattle and carabao repopulation/herd build-up; and
(2) Thirty percent (30%) for other concerns enumerated in this Act:
Provided, That the breeder/stock farm shall refer only to cooperatives or associations of at least fifteen (15) dairy farms, which have been in existence for at least two (2) years. They should have a counterpart contribution of at least a two (2)-hectare lot for said breeder/stock farm;
(c) Six percent (6%) for animal health and welfare, native animal development programs, disease control, prevention and response, including protective surveillance, pest and disease emergency response, and conduct research and technology advancement programs.
The fund shall be distributed as follows:
(1) Three percent (3%) for the BAI-National Development Centers;
(2) Two percent (2%) for vaccines and biologics production research and development initiatives and vaccine stockpiling; and
(3) One percent (1%) for the establishment and maintenance of the AMIS;
(d) Nine percent (9%) for the Capacity Recovery Fund (CRF) to be allocated to the BAI as the lead agency in the Animal Emergency Response Task Force (AERTF). It shall be utilized as a supplementary fund to the Quick Response Fund (QRF) of the DA, the National Disaster Risk Reduction and Management Funds under Republic Act No. 10121 or the "Philippine Disaster Risk Reduction and Management Act of 2010", or other government sources. LGUs may also augment the CRF using their local funds. Unexpended CRF shall remain on standby and shall not be reverted to the general fund.
The CRF shall be managed by the BAI Administrator. It shall be the source of actual cash assistance to livestock, poultry, and dairy (LPD) farmers who have become affected, with necessary proof, by animal disease outbreaks as declared by the national or local government authority. The qualification of recipients and the mechanism by which cash assistance shall be handed out shall be drawn by the BAI Administrator in consultation with the LPD associations or organizations: Provided, That the actual channel by which cash is to be given out shall be through the Development Bank of the Philippine (DBP);
(e) Fourteen percent (14%) to Philippine Center for Postharvest Development and Mechanization (PhilMech) for building or improving shared service facilities such as primary processing facilities like slaughterhouses, poultry dressing plants, facilities for the collection of dairy milk, and meat processing and storage. This component shall also include dairy logistics, cold chain development, distribution of equipment for developing of biosecure facilities with appropriate equipment for LPD production. These facilities shall serve the needs of small-hold raisers, cooperatives, or organizations: Provided, That the allocation and disbursement of funds shall be in accordance with the following schedule:
(1) Hogs subsector - at thirty percent (30%);
(2) Dairy subsector - at thirty percent (30%);
(3) Poultry subsector - at ten percent (10%); and
(4) Other animals - at thirty percent (30%);
(f) Fourteen percent (14%) for developing and augmenting food safety, animal extension support, and training services.
The fund shall be distributed as follows:
(1) Five percent (5%) to the BAI;
(2) Two and five tenth percent (2.5%) to the NDA;
(3) Two and five tenths percent (2.5%) to the PCC;
(4) Three percent (3%) to Agricultural Training Institute (ATI) of which 0.5% goes to International Training Center on Pig Husbandry (ITCPH); and
(5) One percent (1%) to PHilMech:
Provided, That all initiatives shall be in cooperation with ATI to delineate efforts avoiding overlaps and duplication, as well as to ensure its alignment with the NAIDP;
(g) Five percent (5%) to be equally divided between the BAI, NDA, and the 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. They shall establish model forage farms in their existing research and development (R&D) centers nationwide, and develop forage and feed consolidation models in partnership with cooperatives;
(h) Fifteen percent (15%) to the BAI for credit to the animal industry sector, to be made available in the form of credit facility, interest subsidies including negative interest loans in the case of calamities, and credit guarantees for the improvement of breeders and stocks through the purchase of breeders, growers, multipliers, feeds, genetically improved stocks, establishment of animal housing, and purchase of equipment for livestock, poultry, and dairy farms, with the least of interest rates and documentary requirements: Provided, That such credit instruments shall be made available through the Land Bank of the Philippines and DBP, at the direction of the BAI;
(i) One percent (1%) to DA-Agribusiness and Marketing Assistance Service (DA-AMAS) for marketing and trade promotion activities, and price analytics such as updating of cost structure, supply value chain analysis, sensitivity analysis, and price analysis benefitting the livestock, poultry and dairy raisers;
(j) Two percent (2%) to be divided between the BAI (1%) and PCC (1%) for farm school-based and/or industry-driven R&D programs, as well as technology transfer and commercialization programs and projects; and
(k) One percent (1%) to the DA for the accreditation of small-hold livestock raisers into formal groups such as cooperatives or organizations:
Provided, That the DA Secretary may reallocate unexpended funds from any item from the previous year in accordance with the programs enumerated in this section and towards the capitalization of the NDA: Provided, further, That each agency in the above allocation of funds shall annually report on their accomplishment to the Congressional Oversight Committee on Agricultural Fisheries Modernization (COCAFM).
Beneficiaries of the ANCEF.
SEC. 17. Beneficiaries of the ANCEF. - Within one hundred eighty (180) days from the effectivity of this Act, the DA, in consultation with farmers' cooperatives and organizations, and LGUs, shall establish the Livestock Registry System (LRS) as the master list of eligible AnCEF beneficiaries.
The beneficiaries of the AnCEF are small livestock raisers, livestock cooperatives, associations, or organizations accredited by the DA: Provided, That preferential attention shall be given to livestock raisers who are members of cooperatives, associations, or organizations.
Review of the AnCEF.
SEC. 18. Review of the AnCEF. - The following mandatory review of the AnCEF shall be performed:
(a) The Philippine Institute for Development Studies (PIDS) shall conduct impact evaluation of the AnCEF programs on livestock productivity on the second, third, sixth and ninth year of the effectivity of this Act;
(b) The percentage allocation of the AnCEF shall be reviewed on the third year from the effectivity of this Act for possible revisions should intervention priorities change; and
(c) Before the end of the tenth year from the effectivity of this Act, a mandatory review shall be conducted by the COCAFM to determine whether the AnCEF and its utilization as provided under this Act shall be continued, amended, or terminated. The increase or decrease in farmers' incomes shall be a primary benchmark in determining the effectiveness of the interventions under the program and its possible extension.
In view of its oversight functions, the COCAFM, at any time, may conduct an assessment of the implementation of programs and utilization of the AnCEF as directed under this Act.
