Transcript POULTRY, LIVESTOCK AND CORN CLUSTER

POULTRY,
LIVESTOCK AND
CORN CLUSTER
AF 2025 Mid-Year Conference:
Assessment and Ways Forward
07 October 2011, PSSC, Diliman, Quezon City
Component Sectors:
1. Poultry
• Broiler
• Layer
2. Livestock
• Hog
• Dairy Cattle
• Beef Cattle
• Small ruminants
3. Corn
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Sector Goals
1. Food self-sufficiency
2. Food safety and quality
3. Increased jobs and income
4. Educated and trained farming sector
5. Increased trade surplus
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AF 2025 Priority Programs, Strategies,
& Policy Recommendations
1. Strict enforcement of anti-smuggling laws
2. Review of the local government code
3. Government credit and insurance programs
4. Zoning ordinances
5. Post-harvest facilities
6. Specific sector recommendations stated in the
AF2025 Conference Output paper
Chronology of Post-Summit AF2025 Process
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February 10-11, 2011 -Summit in Antipolo
March 8, 2011 – Designation of TF Coordinators by
Sen. Pangilinan
March 16, 2011- TF Coordinators Meeting
March 29, 2011- TF on Poultry, Livestock and Corn Sector
Meeting
April 6, 2011- TF Coordinators Mtg. with Sen. Pangilinan
May 9, 2011- TF meeting re DA Budget
May 19, 2011- TF Coordinators Mtg. w/ Sen. Pangilinan
re: Budget
May 24, 2011- TF on PLCS Meeting
May 25, 2011- Presentation of TForces Output at Club
Filipino
Chronology of Post-Summit AF2025 Process
• June 9, 2011 - Dialogue with Secretary Proceso Alcala
(Designation of Asec Dave Catbagan as DA-Focal Person who will
work with TF on PLCS)
• June 23, 2011 - TF on PLCS Meeting with Asec Catbagan
• July 22, 2011 - LDC Executive Committee Meeting
• August 10, 2011 - TF on PLCS Meeting with Asec Catbagan
• August 16, 2011- Presentation of TF Activities to the NAFC
Committee on Poultry, Livestock and Feed Crops with Mrs.
Rufina Salas as chair
• September 16, 2011- TF on PLCS follow up meeting
• September 19, 2011- TF on PLCS meeting
BUDGET (2012) Priorities
1. National Corn Program
2011 – P534.3M
Proposed – P1.029 B
NEP – P950M
2. Post Harvest Facilities
2011- 0
Proposed – P392.31M
NEP – P339.26M
3. National Livestock
Program
- Strengthening of
Diagnostic and Biological
Infrastructures
Proposed – P1.029 B
NEP – P1.027 B
Proposed – P99.956 M
NEP – P50M
BUDGET (2012) Priorities
- Strengthening of Feed
Laboratories
Proposed – P58.273M
NEP – P10.9
- Improvement of Quarantine
Facilities and Services
Proposed – P58.391M
NEP – P15.938M
- Improvement of Meat
Establishment
NEP – P188.25M
(Triple A Slaughterhouse)
3. Livestock Development
Council
Proposed – P20.386M
NEP – P19M
KEY PRIORITIES
A. DAIRY SECTOR
1. Establishment of Genetic Improvement Board (Dairy
and Beef)
Status: A study on the Establishment of a Genetic
Improvement Board was presented during the July
22, 2011 meeting of the LDC Council. The dairy
sector has a resolution creating a Board of Animal
Registry
Way Forward:
● The study is for review of the relevant agencies
(PCC, NDA) and consultations with stakeholders.
● For possible legislation.
KEY PRIORITIES
A. DAIRY SECTOR
2. Policy on truth in labeling, i.e., UHT processed
milk should not be labeled as “fresh”
Status: The Dairy Confederation has asked
DA to support Rep. Kimi Cojuangco’s bill on
the definition and labeling of fresh milk.
Way Forward: For Legislation
KEY PRIORITIES
B. BEEF CATTLE SECTOR
1. Establishment of Genetic Improvement Board Same as Dairy
2. Create a national policy on the preservation of wet markets
Status: DA- AO 22 entitled “Rules & Regulations in the
Handling of Frozen and Chilled Meat Products in the Meat
Markets” to assure food safety by avoiding comingling of
thawing frozen meat with fresh meat.
C. SMALL RUMINANTS
1. Establishment of Genetic Improvement Board –
Same as Dairy
KEY PRIORITIES
D. HOG SECTOR
1. Establishment of Triple A Slaughterhouses, cold storage and
cold chain facilities
Status: BAI has submitted to the DA the market development
plan for Double A Slaughterhouses and for the phasing-in of
Triple A slaughterhouses. A budget of P180 M is included in
the NEP for the building of Triple A Slaughterhouses for 2012.
Way Forward: For consultation with the hog sector where to
locate the Triple A Slaughterhouses. The next phase is the
establishment of poultry dressing plants for small-and mediumscale farmers and traders.. (DA-Livestock Program)
KEY PRIORITIES
D. HOG SECTOR
2. Single tariff classification on meat and
/MDMs
offals
Way Forward: The NEDA-TRM will consider
raising the tariff rate of offals from 5% to 35% and
MDMs up to 20% except for liver in view of WTO
rice import concession. The sector will file a
petition to increase the tariff rate of offals from
5% to 35%.
KEY PRIORITIES
D. HOG SECTOR
3. Misdeclaration of meat products as offals or MDMs
Status: NMIS is conducting inspections during
unloading of meat products in accredited cold
storage facilities to verify or avoid misrepresentation
of such products
Way Forward:
● NMIS to inspect all cold storage facilities
● Issuance of an AO for mandatory accreditation of
cold storage facilities
KEY PRIORITIES
D. HOG SECTOR
4. More effective trigger price for SSG duties in
accordance with Chapter III Sec. 24 of RA 8800
Way Forward: DA-Policy and Planning and BAI
will study and determine a more effective trigger
price for the importation of SSG duties to
counter import surges.
KEY PRIORITIES
E. CORN SECTOR
1. Classification of Post-Harvest Facility site as
agro-industrial
2. Removal of 1% expanded sales tax on corn
grains or corn on cob sale of farmers to
Corn Centers
3. Removal of LGU fees and taxes by NFA and
LGU on farm machineries
Status: Referred by the National Corn
Program to the NFA and DAR.
KEY PRIORITIES
E. CORN SECTOR
4. Establish a GIS-supported database for corn farm
lands and project sites of Post harvest facilities
Status: Under consideration by OSEC
5. Stop excessive importation of chicken and pork meats
Status: National Corn Board has submitted a letter to
the OSEC.
Way Forward: DA must develop a Philippine
negotiating position in consultation with the
stakeholders.
KEY PRIORITIES
E. CORN SECTOR
6. DA support for Biotechnology vis-à-vis LGUs
Status: The proposal to develop a
Biotechnology Program vis-à-vis LGUs was
submitted to the DA
Way Forward: Conduct of stakeholders’
consultation
KEY PRIORITIES
F. POULTRY SECTOR
1. Removal of the Minimum-Access-Volume (MAV) on
chicken on the ground that the in-quota and out-quota
tariff rates have been equal since 2005 based on the
Philippine Schedule of Commitments with the WTO.
Status: The DA sought the opinion of the DOJ on the
issue last 21 December 2010. Follow up was made with a
letter sent on 20 July 2011. No reply from the DOJ as of
this date.
Way Forward: For the MAV Secretariat to follow up with
the DOJ bureaucracy so that efforts can be made to have
an opinion from Secretary de Lima of DOJ.
KEY PRIORITIES
F. POULTRY SECTOR
2. Nutritional analysis of Mechanical Deboned Meat
(i.e., a gel like by-product used by processors as
extenders)
Status: NMIS has already conducted the analysis.
There is an on-going public consultation on the
Administrative Order re: Guidelines on the Handling
and Usage of Mechanically Deboned Meat and for
implementation.
Way Forward: NMIS will furnish the stakeholders
the results of the analysis for study and verification.
KEY PRIORITIES
F. POULTRY SECTOR
3. Development of a data system to assure fair trade
and assist in anti-smuggling efforts which would
entail the following:
a) normal values for poultry and hogs from
exporting countries, SSG payments, PEZA
data, and regular reconciliation of MAV arrivals
with MAV utilization;
b) coordinate with the BOC to establish a fairer
reference price as a basis for imposing tariffs;
KEY PRIORITIES
F. POULTRY SECTOR
c) acquiring data on volume of exports from
countries of origin specific to poultry and hogs
and compared with BOC arrival data to capture
underreporting similar to IMF &UNCOMTRADE
Status: Sec. Alcala has approved the request during
the TF on PLCS dialogue with him on 09 June 2011.
Way Forward: Initial presentation to Sec. Alcala and
stakeholder during the TF PLCS meeting on
October 26, 2011.
KEY PRIORITIES
F. POULTRY SECTOR
4. Monitoring of chicken and pork products entering
the country through the PEZA including Subic and
Clark.
Status: DA already issued directives to PEZA to
first liquidate the used VQCs before issuing new
VQCs to monitor importation. Out of four companies
doing re export, only one complied.
Way Forward: Stricter monitoring of NMIS and BAI
KEY PRIORITIES
F. POULTRY SECTOR
5. Update of the BAI feed standards program as a
complement to the NMIS food safety program of antibiotic
residue testing.
Status: BAI already submitted the Quality Assurance
Program. BAI and other DA Agencies are capable of testing
aflatoxins, antibiotic residues except for amino acids.
Way Forward:
• Empower the buyers of commercial feeds, informing them
where to file a complaint and the procedures to do so.
• Request for Budget for laboratory to test amino acids.
KEY PRIORITIES
F. POULTRY SECTOR
6. Announce a policy of no special importation (0% tariff
and/or no SSG duties) to discourage those who want to
avoid SSG duties when the MAV has been exhausted or
artificially underutilized.
Status: In practice, no pressure from DA unlike in the
past. However, no clear effort to institutionalize the policy.
There is disagreement between DA and stakeholders.
Way Forward: As temporary compromise, to have
periodic announcements after due consultations that a
special importation is unnecessary. As an additional way
forward, to develop strict trigger conditions as to when
special importations can be done.
KEY PRIORITIES
G. COMMON CONCERNS
1. Anti-Smuggling
Based on the presentation of the Federation of Philippine
Industries, the Average Annual Disparity between
International Monetary Fund (IMF) and the UN Commodity
Trade Statistics Database (UNCOMTRADE) figures on
total exports to the Philippines and the import figures of the
BoC are as follows:
• US$14Billion/yr or PhP700Billion (US$1 = PhP50)
• Impact on government revenues: PhP120 Billion (12%
VAT and 5% duties) per annum
KEY PRIORITIES
G. COMMON CONCERNS
● Underreporting percentage: 25%
(The underreporting for the years 2007, 2008, 2009 are 15.97%,
24.15%, 26.54%, respectively.)
● For chicken, 2010 total imports – 101,957,447
kgs, 25% = 25,489,361.75 kgs.
● For Mavable products – 2010 total – 42,436,666
kgs., 25%=10,609,166.5
KEY PRIORITIES
G. COMMON CONCERNS
Proposals
• Transparency on data by DA and BoC
• Develop data specific to chicken to capture underreporting
similar to IMF &UNCOMTRADE
• OSEC should develop data on normal values, SSG, PEZA,
and MAV utilization on top
of the current import arrival data
at NTFPVW
• No to special importation
• Single Classification (meats & offals)
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
Problems:
• High taxes
• Passing-through fees
• Revenue measures disguised as
health ordinances
• Zoning and Land Conversion
• Restrictions on biotechnology
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
Proposals:
• Review of the Local Government
Code by the legislature
• DA interface with the DILG
• National Land Use Law
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
Status: Dep. Dir. Felix Valenzuela of LDC
conferred with the DILG regarding taxes and
passing-through fees. The view of the DILG is
that legislation is the only solution. Dir.
Leandro Gazmin of AMAS interfaced with the
League of Municipalities also with the same
results. BAI has committed to compile a list of
ordinances on LGU fees.
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
• Legislation to review and reform the Local
Government Code
• Presidential policy statement on food
security with LGU concerns as part of the
package of reforms
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
• On land use, study and support bills on National
Land Use especially those which addressed
agricultural security of tenure and land conversion
issues. In the Senate, the proposed bills are,
SBN109 (Honasan), SBN 141 (Pia Cayetano), SBN
647 (Estrada), SBN 1369 (Legarda), and SBN2673
(Zubiri). In the House, there is a proposed Farm Bill
by Reps. Mark Llandro L. Mendoza, Wilfrido Mark
M. Enverga, and Lorenzo R. Tanada III, Chapter 6,
Sections 35-39 of which tackle national land use.
KEY PRIORITIES
G. COMMON CONCERNS
2. LGU Taxes, Fees, and Other Ordinances
• On biotechnology, either a national policy
statement by the DA or the President and/or
legislation as part of a review of the LGC.
• Dep. Dir. Minda Manantan of NMIS suggested
the development of an incentive scheme for
LGUs which support agriculture and do not
impose passing-through fees.
KEY PRIORITIES
G. COMMON CONCERNS
3. National Environmental Laws and Regulations
• Request for DA to shepherd the small-and mediumscale players into the compliance process and to
prototype compliance techniques and technologies
KEY PRIORITIES
G. COMMON CONCERNS
3. National Environmental Laws and Regulations
• Status: LDC, through Dir. Jarmin, invited the DENR and the
LLDA to present their respective requirements and
compliance assistance programs on 22 July 2011. During
that meeting, the LLDA stated that the Baras Business
Council (BBC) in Rizal province is part of its compliance
assistance program. Mr. Cedric Sycip and Mr. Alex Gosun
of the BBC were invited to the 10 August 2011 meeting of
the PLCTF. They informed the TF that they have developed
a set technologies which they hope the LLDA and DENR
would consider as compliance with environmental laws.
KEY PRIORITIES
G. COMMON CONCERNS
3. National Environmental Laws and Regulations
Way Forward:
• The proposed technologies developed by BBC which are
applicable nationwide will be presented to BAR for
validation.
• The LDC has been designated as the Shepherd of the
sectors with respect to compliance with environmental
laws.
CONCLUDING REMARKS
According to the United States Council on
Agricultural Science and Technology (CAST),
globally, agriculture faces unprecedented
challenges such as increases in demand for
livestock-based foods in Asia, climate change
that threatens to decrease production capacity in
many places around the world, and increasing
demand due to continuing rapid population
growth in some poor countries (Agricultural
Productivity Challenges for the Future:
Addressing U.S. and Global Challenges, CAST
Issue Paper Number 45, January 2010).”
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CONCLUDING REMARKS
As a result, the most significant trend in the
world today is that countries are planning on the
assumption that food will NOT be cheap and
easily available in the international market.
Long-term food security based on local
production is now a necessity. We are hopeful
that the Department of Agriculture (DA) realizes
this and will embrace our advocacies and that of
other NGO’s.
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AF 2025 TASK FORCE ON POULTRY, LIVESTOCK
AND CORN SECTOR
Atty. Elias Jose Inciong- Chairperson
Asst. Secretary Dave Catbagan- Co Chairperson
Task Force Members
1. Mr. Gregorio San Diego, UBRA
1. Dir. Manuel Jarmin, LDC
2. Mr. Butch Umengan, NCCB
2. Atty Jane Bacayo, NMIS
3. Dr. Zosimo de Leon, NFHFI
3. Dir .Efren Nuestro, BAI
4. Mr. Edwin Chen, Propork
4. Adm. Grace Cenas, NDA
5. Ms. Sharon Tan, Propork
5. Atty. Vero Librojo, DA MAV
6. Mr. Roger Navarro, Philmaize
6. OIC Dir. Noel Padre, DA-PRS
7. Mr. Danny Fausto, Dairycon
7. Dir. Libertado Cruz, PCC
8. Mr. Dann Gomez, FCRAP/MITA
8. Dep. Dir. Felix Valenzuela-LDC
9. Mr. Ben Rara, FGASPPI
9. DA Corn Program
10. Ms. Rufina Salas, AGAP/CPLFC
11. Ms. Rita Imelda Palabyab, PABI
Thank
you!!!