AN ACT ENHANCING ANIMAL INDUSTRY DEVELOPMENT AND COMPETITIVENESS, STRENGTHENING THE BUREAU OF ANIMAL INDUSTRY, AND CREATING FOR THE PURPOSE THE ANIMAL COMPETITIVENESS ENHANCEMENT FUND

[ REPUBLIC ACT NO. 12308, September 25, 2025 ]

AN ACT ENHANCING ANIMAL INDUSTRY DEVELOPMENT AND COMPETITIVENESS, STRENGTHENING THE BUREAU OF ANIMAL INDUSTRY, AND CREATING FOR THE PURPOSE THE ANIMAL COMPETITIVENESS ENHANCEMENT FUND

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

TITLE I
GENERAL PROVISIONS

Section 1. This Act shall be known as the "Animal Industry Development and Competitiveness Act".

Section 2. Declaration of Policy. - The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, which are competitive in both domestic and foreign markets.

To this end, it is hereby declared the policy of the State to advance the animal industry through robust regulatory and development institutions, adequate resources for production support especially for small farmers and producers, sound laws and regulations, effective coordination and collaboration with stakeholders, and credible standards and measures for safety and quality of animal products.

Section 3. Definition of Terms. - As used in this Act:

TITLE II
STRENGTHENING THE BUREAU OF ANIMAL INDUSTRY,
HARMONIZING ANIMAL INDUSTRY REGULATORY AGENCIES,
AND ENHANCING THEIR PROGRAMS

Section 4. Reorganizing and Strengthening the Bureau of Animal Industry. - The BAI is hereby expanded and reclassified into a line agency attached to the Department of Agriculture (DA), with regional and provincial offices. The BAI shall have an office for developmental functions, within which the NLP and its functions shall be absorbed. The NMIS is hereby reorganized and strengthened to be the core regulatory office of the BAI.

The BAI developmental office shall be called the Animal Development and Welfare Office (ADWO) and the BAI regulatory office shall be called the Animal Regulation and Enforcement Office (AREO).

The BAI shall be headed by an Administrator with the rank of an Undersecretary. The BAI shall also create, oversee, and implement the National Animal Industry Roadmap, in consultation with relevant stakeholders.

The PCC and the NDA shall be attached to and be under the direct supervision of the BAI.

Section 5. Authority of the President of the Philippines to Rationalize the Operation of the Livestock Agencies. - The President shall have the authority to restructure and complete the staffing pattern of the BAI in accordance with Section 4 of this Act and government policies and guidelines on rightsizing and rationalization efforts.

Within one hundred twenty (120) days from the effectivity of this Act, the DA, with the assistance of the Department of Budget and Management (DBM), shall submit the recommendations on the organizational structure and staffing pattern of the BAI for the President's approval: Provided, That safety nets shall be provided to employees whose agencies may be affected by the rationalization and funds and resources shall be set aside therefor: Provided, further, That organizational development programs to strengthen the institutional capacity of the agencies and improve the productivity of employees shall be implemented: Provided, finally, That the approved organizational structure and staffing pattern may be reviewed and evaluated five (5) years after the effectivity of this Act.

Section 6. Non-interruption of Government Service and Transitory Provisions. - The delivery of government functions and services shall not be delayed or disrupted during the reorganization of livestock agencies. Agencies and personnel shall continue to perform their respective functions, duties, and responsibilities in a holdover capacity until the transition has been completed.

Section 7. Philippine Carabao Center. - The PCC shall continue to perform its original mandates under Republic Act No. 7307 or the "Philippine Carabao Act of 1992", and implement its carabao milk production program. The PCC shall also conduct research and development for other animals. It may also be referred to as the PCC-National Institute for Animal Sciences.

In addition to its existing mandates, the PCC shall develop and implement strategies for other animals as specified under Section 6 of Republic Act No. 7307. The PCC may also undertake animal vaccine and biologics research and development.

The existing PCC regional centers located at the: University of the Philippines Los Baños (UPLB) in Laguna; Central Luzon State University (CLSU) in Nueva Ecija; Cagayan State University (CSU) in Cagayan; Mariano Marcos State University (MMSU) in Ilocos Norte; Don Mariano Marcos Memorial State University (DMMMSU) in La Union; Central Bicol State University of Agriculture (CBSUA) in Camarines Sur; La Carlota Stock Farm (LCSF) in Negros Occidental; Ubat Stock Farm (USF) in Bohol; Visayas State University (VSU) in Leyte; West Visayas State University (WVSU) in Iloilo; Caraga State University (CARSU) in Butuan City; Central Mindanao University (CMU) in Bukidnon; University of Southern Mindanao (USM) in North Cotabato; and Mindanao Livestock Production Center (MLPC) in Zamboanga del Norte shall be converted to research and development stations of the PCC. The existing regional centers may include research and development on other animals.

The PCC may also establish additional research and development center in other areas.

Section 8. National Dairy Authority. -The NDA shall be the central policy and developmental body for the Philippine dairy industry. Its regulatory functions, including its power to issue and impose safety regulations on the dairy industry, shall be transferred to the BAI regulatory office.

The NDA shall be strengthened as the food safety certifying agency for local dairy industry chain including, but not limited to, micro, small, medium and all other commercial dairy processing plants and other entities engaged in dairy activities, whether in whole or in part. The NDA shall be mandated by the BAI and the Food and Drugs Administration (FDA) to provide testing and accreditation services over all local dairy activities and products from primary production up to post-market product distribution.

The NDA, in the exercise of its functions on production, post-harvest, processing, marketing, storage, distribution, and trading, may secure data and reports relative to dairy industry supply and value chain participants.

Within one hundred fifty (150) days from the effectivity of this Act, the FDA, NDA, Bureau of Agriculture and Fisheries Standards (BAFS), and the BAI shall harmonize the standards and guidelines for the regulation of local milk and milk products into a code of dairy regulations to be implemented, enforced, and updated primarily by the BAI.

Section 9. Governance and Expanded Functions of the NDA. - The BAI Administrator shall be designated representative of the DA Secretary as Chairperson of the Dairy Industry Board, created under Section 5 of Republic Act No. 7884 or the "National Dairy Development Act of 1995".

In addition to its existing developmental powers and functions, the NDA shall:

Section 10. Management and Acquisition of Dairy Programs, Projects, and Assets. - All remaining government dairy programs, projects, and assets operating outside of the NDA, except the research and development component of the PCC, shall be absorbed by the NDA. Towards this end, the NDA, in coordination with affected agencies, shall conduct an inventory and survey of all assets it occupies and those assets, lots, funds, grants, subsidies and records of the DA related to dairying, and establish an office for transfer in its name, including the lot occupied by its central offices in the BAI compound, Visayas Avenue, Quezon City, measuring at least one thousand (1,000) square meters.

Subject to the submission by the NDA of a development plan to be approved by the BAI Administrator, focusing on production, post-harvest, processing, marketing, and other commercial arrangements within the dairy value chain and support services, the NDA may also develop properties of the DA such as the Dumarao Stock Farm in Dumarao, Capiz; Bureau of Animal Industry National Beef Cattle Research and Development Center (BAI-NBCRDC) in Malaybalay, Bukidnon; Davao Regional Upland Agriculture Research Station in Marilog District, Davao City; DA-RFO2 - Quirino Experiment Station in Quirino Province; and other suitable properties under the management and administration of the DA.

Section 11. NDA Capitalization. - The NDA shall have an authorizes capital of One billion pesos (P1,000,000,000.00) which shall be fully subscribed by the National Government in accordance with Title III of this Act.

Section 12. Condonation and Writing-off of Farmers' Debts. - To achieve the objectives of this Act, the past debts, including interests and penalties, of farmers to the NDA and the PCC under the Animal Dispersal Program or paiwi both agencies are hereby condoned and written off the records of the NDA and the PCC.

Section 13. Animal Management Information System (AMIS). - Within one (1) year from the effectivity of this Act, the BAI shall establish the AMIS. The AMIS shall be the repository of all information relevant to animal industries. It shall provide timely, accurate, and responsive information related to animal industries from municipal up to national level which shall include, but not limited to, the following data:

The AMIS shall have the capability to process, analyze, evaluate, and validate data and generate reports and forecasts. The system shall be placed directly under the BAI Administrator. The system reports shall be linked to the websites of the BAI, PCC, NDA, and the Philippine Statistics Authority (PSA) for easy access of stakeholders and users to livestock data and information.

Section 14. Nutrition Program and Milk Feeding Program. - The nutrition program of the government requiring milk and dairy products shall be sourced primarily from local dairy farmers and dairy cooperatives. For this purpose, the NDA, together with the PCC, shall spearhead the supply mapping of all local milk sources to determine the distribution based on supply and milk feeding program demand.

Pursuant thereto, the NDA and the PCC shall directly coordinate with the Department of Education (DepEd), Department of Social Welfare and Development (DSWD), LGUs, and other government agencies and entities to ensure the full utilization of local milk supply for the milk feeding program.

TITLE III
ANIMAL COMPETITIVENESS ENHANCEMENT FUND

Section 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:

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;

Dairy imports include imported products under the following HS headings or AHTN Codes, and Descriptions:

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:

Section 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:

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).

Section 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.

Section 18. Review of the AnCEF. - The following mandatory review of the AnCEF shall be performed:

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.

TITLE IV
ANIMAL INDUSTRY REGULATION,
ENFORCEMENT, AND FEES

Section 19. Administrative Regulations. - In addition to the regulations and prohibitions in this Act, the BAI, in consultation with the LGUs and stakeholders, may issue administrative orders or regulations for the conservation, preservation, management, and sustainable development of the animal industry. As far as practicable, all regulations on the sectors of the animal industry shall be harmonized and consolidated into Codes of Regulations for LPD and other major animal industry sectors.

Section 20. Creation of the Animal Emergency Response Task Force. - The AERTF is hereby created at the regional level and may be activated by the appropriate authority in the event of or in anticipation of any animal pest or epidemic incident, or when there is a suspected or confirmed case of emerging or re-emerging transboundary animal or zoonotic disease. The BAI is designated as the overall coordinating government body of the AERTF and shall activate the AERTF. The AERTF shall be composed of key officials or designated representative from the following agencies:

The provincial, municipal, or city veterinarian, as applicable, shall, within twenty-four (24) hours, report any event of notifiable and reportable animal pest or disease incident to the BAI.

In the event of a multiregional pest or epidemic incident, a national body shall immediately be formed, under the direction and command of the Office of the President, to address such pest or epidemic incident.

Section 21. Non-imposition of Fees and Charges on Livestock Movement. - The imposition and collection of any fee and charge, including fees for vehicle stickers, discharging, delivery, market, and entry permits, upon all types of delivery and transport vehicle carrying animal and animal products for access to all roads by any national or local government agency or instrumentality shall be prohibited.

Section 22. Streamlining the Regulations of Veterinary Drugs and Products, and Biologics. - The BAI shall become the sole regulatory agency for veterinary drugs, products, and biologics, and other related animal health products and devices, including the licensing and monitoring of veterinary drugs and products establishments. All regulatory processes for veterinary drugs, products, and biologics, and other animal health products and devices being handled by other agencies, such as the FDA, shall be transferred to the BAI within one hundred eighty (180) days from the effectivity of this Act.

Section 23. Suppletory Application of National Meat Inspection Code. - In the absence of any applicable provision under this Act, the provisions of Republic Act No. 9296 or "the Meat Inspection Code of the Philippines", as amended by Republic Act No. 10536, its implementing rules and regulations, and other relevant laws and issuances shall have suppletory application.

TITLE V
PROHIBITIONS AND PENALTIES

Section 24. Prohibited Acts and Penalties. -

Section 25. Administrative Violations. - Violation of administrative orders or regulations promulgated by the BAI or any provision thereof shall subject the offender to a fine of Ten thousand pesos (P10,000.00) to Two hundred thousand pesos (P200,000.00), depending on the socio-economic impact and seriousness of the violation, volume and value of the animal product and by-product, damage to the industry and/or the environment due to the violation, and the habituality of the offender: Provided, That a violator may offer not to contest with the BAI its finding that an offense was committed, after which the BAI, through the adjudication procedure, is authorized to impose not less than the minimum penalty, but not more than half of the maximum penalty imposable for the violation.

Section 26. Escalation Clause. - The fines herein prescribed shall be increased by at least ten percent (10%) every five (5) years.

Section 27. Administrative Adjudication. - The BAI is hereby empowered to impose the administrative fines and penalties provided in this Act.

For this purpose, the BAI shall organize and designate the composition of the Adjudication Committee, which shall be composed of the BAI Deputy Administrator as Chairperson, the Director which handles regulations and enforcement functions as Vice Chairperson, and three (3) other members from the livestock sector to be designated by the Secretary.

The Constitution shall promulgate rules and regulations for administrative adjudication and the disposition of confiscated animal products, animal by-products, and all other items used in the commission of the violations. It may also issue subpoena duces tecum and ad testificancum in administrative cases before it.

The Office of the Assistant Director is charge of legal concerns shall serve as the Secretariat of the Adjudication Committee and shall be supported by an adequate number of personnel.

Members shall be entitled to travel allowance, honorarium, and per diem for their attendance to the meetings, subject to government accounting and auditing rules.

TITLE VI
FINAL PROVISIONS

Section 28. Transitory Provisions. - Animal industry-related functions of the DA regional field office shall be transferred to the regional office of the BAI established under this Act. Employees responsible for the transferred laboratory functions will be reassigned to the Office of the Regional Director for BAI regional offices. Their employment terms, benefits, and service records shall be preserved.

The NMIS Central and Satellite Meat Laboratories shall be renamed and reorganized as Food Safety Laboratories of the BAI.

Section 29. Appropriations. - The amount necessary of the initial implementation of this Act shall be charged against the current year's appropriations of the programs, bureaus, and agencies concerned. Thereafter, such amount shall be included in the annual General Appropriations Act.

A one-time allocation of Two billion three hundred million pesos (P2,300,000,000.00) form the accumulated and unutilized Remedies Fund derived from safeguards imposed on bovine, chicken, processed pork and processed meat exports under Section 34 of Republic Act No. 8800 or the "Safeguard Measures Act" shall be allocated for the BAI, as follows:

Section 30. Separability Clause. - If any provision of this Act is declared unconstitutional, the remainder hereof not otherwise affected shall remain in full force and effect.

Section 31. Repealing Clause. - Such other laws, presidential decree, executive orders, letters of instruction, proclamations, or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Section 32. Effectivity. - This Act shall take effect fifteen (15) days after its publications in the Official Gazette or in the two (2) newspapers of general circulation.

Approved,

This Act, which is a consolidation of Senate Bill No. 2558 and House Bill No. 11355, was passed by the Senate of the Philippines and the House of Representatives on June 4, 2025.

Approved: SEP 25 2025

(SGD.) FERDINAND ROMUALDEZ MARCOS JR.
President of the Philippines