Creation of National Dairy Authority for dairy Dev

Law Summary

Declaration of Policy

State policy aims for national self-sufficiency in milk and dairy products.
Goal includes achieving a self-reliant Philippine economy, proper nutrition, and more employment.
Emphasizes the primary role of the private sector in dairy research, production, processing, and marketing.
Government's role limited to policy-making, facilitation, and regulation.
Creation of an agency to assist private sector development under cooperativism.
Focus on breed development suited to Philippine conditions.
Establish marketing networks between processors and end-users.

Objectives

Accelerate development of the dairy industry.
Support production, processing, and marketing, especially of rural small dairy farmers.
Encourage participation of farm families, cooperatives, and private sector.
Ensure affordable supply of milk and dairy products.
Improve livelihood and income through dairying.
Enhance nutrition for children, pregnant, and nursing mothers.
Develop and spread smallholder-based dairy technology.
Improve milk production and build productive milking herds.
Conserve foreign exchange by supporting local production.

Creation of the National Dairy Authority (NDA)

Established as the central agency.
Attached to the Department of Agriculture for policy coordination.
Responsible for policy determination and direction in dairy development.

Dairy Industry Board Composition

Chair: Secretary of Agriculture.
Members: NDA Administrator (ex officio), Secretaries of Trade and Industry, Health, Education, Culture and Sports, Science and Technology, Agrarian Reform.
Director of Dairy Training and Research Institute.
Four presidential appointees representing commercial processors and dairy cooperatives from Luzon, Visayas, and Mindanao.
Members serve 3-year terms without reappointment.

Powers and Functions of NDA

Formulate and implement dairy programs impacting nutrition and income.
Assist in procurement and distribution of animals, supplies, equipment.
Integrate dairy production into rural livelihood and nutrition programs.
Supervise all dairy-related government personnel and programs.
Borrow funds and enter financial arrangements within legal limits.
Accept grants, subsidies, donations.
Establish offices nationwide.
Design credit systems for dairy farmers and cooperatives.
Charge fees for services.
Promulgate rules and regulations.
Sue and be sued, adopt corporate seal.

Board Meetings

Regular monthly meetings; special meetings as needed.
Quorum: at least 7 members.
Majority vote transacts business.
Department secretaries may be represented by undersecretaries or assistant secretaries with voting rights.
Chair votes only to break ties.

Allowance of Board Members

Per diems and emoluments fixed by the Board, not exceeding P4,000 per month.
Transportation reimbursed for representatives from distant areas.
NDA Administrator receives remuneration fixed by the Board.
Matters may be resolved by memorandum with majority approval if meetings can't be convened.

Authority Management

Full-time Administrator and Deputy Administrator appointed by the President.
Administrator qualifications: Filipino citizen, at least 35 years old, good moral character, competent executive, preferably knowledgeable in dairy.
Salaries based on Salary Standardization Act.

Administrator's Powers and Functions

Submit policy and measures for Board consideration.
Recommend organizational structure and personnel.
Implement Board policies.
Submit annual and supplemental budgets.
Represent Authority in dealings.
Appoint, discipline, or remove officers and personnel, subject to Board confirmation.
Perform other Board or Agriculture Secretary assigned duties.

Dairy Cooperatives and Farmers' Organizations

Authority assists formation of cooperatives among small producers and processors.
Facilitate cooperative access to dairy inputs on favorable terms.
Provide forums for discussing cooperative issues.
Help design credit systems for cooperatives.
Support marketing and negotiations for bulk sales.
Promote formation of a Dairy Cooperatives Federation.

National Dairy Campaign

Authority to promote nationwide support campaigns.
Encourage women's participation in dairy projects including animal care, nutrition, processing, and marketing.

Priority Projects

Educational programs for dairy farmers and cooperatives.
Training in animal husbandry, feed technology, cooperative management.
Dairy research on breeding, herd improvement, feed sourcing, products, veterinary drugs, and facilities.
Establish support services for animal health and nutrition supplies.
Increase local animal stock quality and quantity.

Dairy Development Fund

Created with initial P200 million from the National Treasury.
Annual appropriations of not less than P140 million to augment fund.
Funds exclusively for priority projects in Section 13.

Government Agency Support

Authority coordinates with agencies for infrastructure and tariff settings to protect industry.

Nutrition Programs

Government nutrition programs sourcing milk and dairy products from small farmers and cooperatives through the Authority.

Supply and Distribution Monitoring

Authority monitors importation, manufacture, supply, distribution of dairy products and inputs.
May set import/export pricing and guidelines after consultations.
Within 3 years, cooperatives and processors must agree on volumes of local milk absorption.
If no agreement, Authority determines volume processors must absorb.
Tax credits offered to processors who buy excess local milk.

Tax Exemptions

Authority exempt from duties and taxes on importation of dairy inputs under specified conditions.
Donations to Authority are income tax deductible and exempt from donor's tax.
Small farmers and cooperatives exempt from taxes on raw milk sales.
Milk processors get a 4% presumptive input tax credit on purchases from small farmers/cooperatives.

Credit Facilities

Bangko Sentral encouraged to adopt policies promoting financing via rural banks and credit institutions.
Specific banks tasked to develop lending programs for small dairy farmers and cooperatives at affordable terms.

Authority Auditor

Auditor and staff appointed by Commission on Audit.
Salaries paid by Commission on Audit.

Transitory Provisions

Abolishment of Philippine Dairy Corporation.
Transfer of dairy functions and assets from various agencies to Authority.
Secretary of Agriculture to designate officer-in-charge pending Administrator appointment.
Incumbent officials continue duties with benefits until Board orders otherwise.
New staffing pattern approved within 90 days.
Retirement or separation benefits prescribed.

Penalty Clause

Violators subject to imprisonment up to 6 months, fine up to P20,000, or both.

Promulgation of Rules and Regulations

Department of Agriculture to prepare rules within 6 months.
Secretary of Agriculture to report to Congress within 90 days on rule promulgation status.

Appropriations

Budgets of merged or abolished bodies transferred to Authority.
Subsequent appropriations included in General Appropriations Act.

Repealing Clause

All inconsistent laws, orders, rules repealed or modified.

Separability Clause

Declared unconstitutional or invalid provisions do not affect remaining provisions.

Effectivity

Act takes effect 15 days after publication in Official Gazette or newspaper of general circulation.