Former Senator Cynthia Villar welcomed the signing of Republic Act No. 12308, or the Animal Industry Development and Competitiveness Act (AIDCA), a measure aimed at revitalizing the country’s livestock, poultry, and dairy sectors through a P200-billion investment over the next 10 years.
‘I thank President Ferdinand R. Marcos Jr., Representative Mark Enverga, the Department of Agriculture, and all industry stakeholders for their support in the passage of this vital measure,’ Villar said. ‘This law will strengthen our animal industries, ensure food security, and help build a more resilient agricultural sector.’
Signed into law on September 25, RA 12308 elevates the Bureau of Animal Industry (BAI) into a line agency under the Department of Agriculture, expanding its regulatory functions and authority. The measure also strengthens the Philippine Carabao Center (PCC) and National Dairy Authority (NDA) by assigning them new mandates, including biotechnology, vaccine development, and herd repopulation programs.
Villar said the initiative was driven by the devastation caused by the African Swine Fever (ASF) outbreak in 2022, which led to a 20.8 percent decline in pork production and economic losses estimated at ?100 billion in 2023.
‘The ASF outbreak nearly crippled our hog industry and disrupted the food supply chain. This law will help our farmers recover and prevent similar crises in the future,’ Villar said.
The former senator also emphasized the need to strengthen the local dairy industry, which currently produces only one percent of the country’s milk requirements.
‘Our dairy sector faces persistent challenges such as low herd population, lack of breeding farms, and insufficient training on animal nutrition and management. The AIDCA will help us address these issues through better programs and funding,’ Villar added.
A major feature of the law is the creation of the Animal Competitiveness Enhancement Fund (AnCEF), which will receive ?20 billion annually from tariffs on livestock, poultry, and dairy imports.The fund will be allocated for:
26%- Repopulation and herd build-up
7% – To be divided equally between the Phil Carabao Center and the National Dairy Authority for herd build-up and repopulation
6%- For animal health and welfare, native animal development programs, disease emergency control, prevention and response, including research and technology advancement
9% – For a Capacity Recovery Fund (CRF), supplemental to the Quick Response Fund under RA 20121
14% – For building improvement and mechanization of shared facilities (Processing plants,slaughterhouses,poultry dressing plants,storage and collection equipment).
14% – For augmenting and developing food safety, animal extension support services, and training
5% – For the development and propagation of animals, feeds, forage, and fodder-particularly seeds and planting materials-and ensuring affordable access for small-hold farmers
15% – For credit to the animal sector, including:Interest subsidies and negative interest loans in case of calamities,Credit guarantees for improvement of animal breeds, breeders, and multipliers,Feeds, animal housing, and purchase of equipment
2% – For technology transfer and commercialization of programs
1% – For marketing services
1% – For accreditation of smallholder farmers and raisers into formal groups such as cooperatives or organizations
The AnCEF was patterned after the Rice Competitiveness Enhancement Fund (RCEF), which Villar also principally authored. It will serve as a supplementary fund to the National Livestock Program (NLP).
The law mandates the Department of Agriculture (DA) to create a Philippine Livestock, Poultry, and Dairy (LPD) Value Chain Development Roadmap to align government programs and ensure efficient service delivery.
It also provides for the establishment of a Livestock, Poultry, and Dairy Management Information System (LPDMIS) – a centralized database for real-time monitoring and decision-making.
In addition, an Animal Registry System will be set up to identify and accredit eligible farmers and raisers who will benefit from AnCEF programs.
The Philippine Institute for Development Studies (PIDS) will monitor the implementation of the AIDCA and release an annual performance report beginning in its second year.
On its third year, the allocations under the AnCEF will be reviewed to assess program effectiveness, while a mandatory review by the Committee on Cooperatives and Farmer Modernization (COCAFAM) will be conducted on the law’s tenth year to determine whether amendments or extensions are needed based on improvements in farmers’ incomes.
‘Pork, chicken, and milk are essential to the Filipino diet. Through this law, we aim to make our animal industry more competitive and sustainable,’ Villar said.
‘This measure not only strengthens food security but also ensures better income for our farmers and livestock raisers,’ she added