Bulk Purchases of Feed Ingredients, Feed Supplements, Drugs, and Biologicals for Poultry and Hog Production

September 29, 1975

LETTER OF INSTRUCTIONS NO. 321

 

WHEREAS, it is the policy of government to support small and medium sized entrepreneurial activities;

WHEREAS, field surveys conducted by the Department of Agriculture verify reports that an alarming number of small poultry and hog raisers have gone out of business;

WHEREAS, the same surveys indicate that many more raisers are in danger of being forced out of business;

WHEREAS, these raisers suffer from recurrent shortages in the supply of feeds, chicks, and piglets; cdt

WHEREAS, lack of certain feed ingredients and certain unscrupulous cost-cutting measures have resulted in low quality feeds;

WHEREAS, the poor quality of feeds has forced raisers to incur higher costs due to lower feed to weight conversion ratios;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines do hereby order the following:

1.  The National Grains Authority (NGA) and/or the Food Terminal Inc., in consultation with the Department of Agriculture (DA), shall engage in the bulk purchases of local and imported feed ingredients, feed supplements, drugs, and biologicals needed in poultry and hog production. Such ingredients and other inputs shall then be sold to small and medium size poultry and hog raisers and to small medium size feedmills, at preferential prices, preferably through cooperative or associations.

2.  That LOI No. 57, dated February 19, 1973, now be amended as it is hereby amended:

a)  The Philippine Coconut Authority (PCA), in consultation with the DA, is hereby empowered to increase the volume of copra meal allocated for animal feeds purposes and to include in addition to FMAP, PAHRI, and other bona fide members of hog and poultry raisers' cooperative and/or associations, small and medium size and feedmills and other legitimate individual poultry and hog raisers.

b)  The Chairman of the Price Stabilization Council (PSC) is hereby directed to review the ceiling prices of copra meal and molasses from time to time in consultation with the DA. aisa dc

3.  The Chairman of the PSC is further directed to review and establish a reasonable ceiling price for pollard.

4.  The NGA shall require all flour millers to provide adequate quantities of their pollard production for sale to small and medium size feedmills and small and medium size poultry and livestock raisers. To stabilize corn prices for feed purposes, NGA shall make available corn at predetermined fixed prices to prevail over specific time periods. This corn may then be purchased by poultry and livestock raisers and feed mills under specific purchase contracts.

5.  In the light of Instruction 1, 2, 3, and 4, the PSC, in consultation with the DA, is hereby instructed to review present price ceilings for feeds.

6.  The Bureau of Animal Industry (BAI) is directed to impose rigid quality standards for feeds, and accelerate gearing up its laboratories, testing facilities and personnel, for the proper monitoring of the production of quality commercial feeds. BAI shall also monitor strictly the activities of hatcheries to ensure appropriate monthly production of chicks and to ensure the proper disposition of such chicks so as not to prejudice small and medium size independent procedures.

7.  The Department of Trade is hereby instructed to supervise and ensure that feedmillers, particularly the big ones, do not discriminate against the small and medium size poultry and hog raisers, especially the independent producers, in their sales, pricing and credit policies.

8.  The Board of Investment (BOI) is hereby instructed to review jointly with the DA its policies on integrated operations versus small and medium size operations in an effort to provide incentives to small and medium producers.

9.  I hereby order that a committee be formed to study any monopoly practices by feedmillers. This committee shall be chaired by the Secretary of Justice, with the Secretaries of Trade, Industry, and Agriculture as members.

This Letter of Instructions shall take effect immediately. casia

DONE in the City of Manila, this 29th day of September, in the year of Our Lord, Nineteen Hundred and Seventy-Five.