Food security gets boost from P20 billion animal competitiveness fund

MANILA, Philippines — The creation of an earmarked fund for the development of livestock and poultry sectors using collected tariffs is critical in boosting domestic meat production and achieving food security amid threats of animal diseases, experts said.

Philippine Chamber of Agriculture and Food Inc. president Danilo Fausto said the impending enactment of the Animal Industry Development and Competitiveness Act would be a “great” boost to the livestock sector, especially its programs to mitigate biosecurity threats.

The House of Representatives recently approved on third reading House Bill 11355 that aims to rationalize and strengthen the Bureau of Animal Industry while creating the Animal Competitiveness Enhancement Fund (ANCEF).

The ANCEF is a 10-year earmarked fund with an annual appropriation of P20 billion, primarily financed by tariffs collected from imported meat and dairy products, to bankroll programs aimed to develop the domestic livestock, dairy and poultry sectors.

The fund was patterned after the Rice Competitiveness Enhancement Fund, which lawmakers have touted as a role model in developing agricultural sectors.

The bill is now set to be deliberated by the bicameral conference committee to address the disagreeing provisions in the versions of the houses of Congress.

“ANCEF has the potential to improve food security and boost the resilience of the livestock, dairy and poultry sectors, with effective governance playing a crucial role in achieving these outcomes,” University of Asia and the Pacific Center for Food and Agri Business executive director Marie Annette Dacul told The STAR.

She pointed out that the success of ANCEF would depend on “solid” governance to ensure transparency and proper management of funds.

“Focusing investments on research, infrastructure and modernization will be crucial in driving sustainable growth and strengthening the sectors over time,” she said.

The ANCEF was earlier estimated to have a guaranteed budget of P7 billion from tariff collections but it was revised upward to P15 billion after the Department of Agriculture (DA) validated the figures. But now, lawmakers and DA officials are looking at P20 billion.

The programs that would be financed by ANCEF include herd build-up and repopulation, research and development, animal health and welfare, capacity recovery, post-harvest facilities, food safety and extension support, feeds distribution, credit, marketing and clustering of farmers, among others.

“The revenues in excess of P20 billion shall be allocated for direct finance support programs for farmers including recovery programs and support,” House committee on agriculture and food chairman Rep. Wilfrido Mark Enverga said.

He noted that the government collected P26 billion in tariffs from imported meat and dairy products in 2023 and another P25 billion last year.