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(NAR) VOL. 15 NOS. 3-4 / OCTOBER - DECEMBER 2004

[ BAI ADMINISTRATIVE ORDER NO. 16, S. 2004, August 10, 2004 ]


WHEREAS, pursuant to "Presidential Decree 07, series of 1972" Prescribing the orderly marketing of livestock and animal products and regulations on animal feeds" It is necessary to formulate specific policies and procedures governing the flow of livestock through the various stages of marketing and the proper preservation and inspection of such products;

WHEREAS, pursuant to Letter of Instruction No. 16, dated 30 September 1972 addressed to the Secretaries of the Department of Agriculture and Department of National Defense, Provincial Governors, City and Municipal Mayors to immediately implement the provisions of Presidential Decree No. 07 "regulate the orderly marketing of livestock and animal products"

WHEREAS, that the Department of Agriculture Administrative Order No. 01, series of 1976, state that the "establishment of livestock markets pursuant to P.D. 07 and Letter of Instruction No. 16, hereby ordered that all cities, municipalities, and provinces of the entire country which have existing livestock markets shall operate only upon the authorization of the Director of the BAI and the operation of all livestock markets shall be subjected to the rules and regulations as stipulated in the guidelines for the establishment and operation of the livestock markets".

WHEREAS, Republic Act No. 7394 of 1991, otherwise known as the "Consumer Act of the Philippines" to implement measures to achieve the objectives of protecting the consumers against hazards to health, safety and deceptive, unfair and unconscionable sales acts and practices.

WHEREAS, pursuant to Republic Act No. 8485, otherwise known as the "Animal Welfare Act of 1998" purpose to protect and promote the welfare of all animals in the Philippines.

WHEREAS, pursuant to DA Administrative Order No. 28 of 2003, "guidelines on the movement and slaughter of swine and other Foot and Mouth Disease susceptible food animals" requiring all livestock traders to secure livestock handlers license issued by Director of Bureau of Animal Industry or his duly assigned personnel prior to the issuance of shipping permit and veterinary health certificate.

WHEREAS, pursuant to DA Administrative Order No. 32, series of 2002 "Foot-And-Mouth Disease Control and Eradication Measures in Slaughterhouses" that livestock markets which serve as a holding area for live sales should be built away from the slaughterhouses.

NOW, THEREFORE, I, LUIS P. LORENZO, JR., Secretary of Agriculture, do hereby issue this order.

SECTION 1. Objectives and Scope -

a.  To provide a centralized market with organize facilities with the use of the weighing scale, grading, price information and provide bio-security measures through various stages of marketing channels/distribution for livestock and poultry.

b.  To regulate the establishment, operation, management and accreditation of all livestock markets in the Philippines.

c.  To achieve the efficient marketing of livestock and poultry.

SECTION 2.  Criteria to be Considered in Selection of Proposed Livestock Market -

1.  A livestock producing area centrally located with good transport facilities;

2.  A livestock market originally holding sales or pooling place;

3.  Interest and willingness of local official in the establishment of livestock "oksyon" market;

4.  Program of LGU's on continuous livestock production;

5.  It must be at least 25 kilometers from the nearest accredited livestock "oksyon" markets with a different market day.

6.  Livestock "Oksyon" market should be established away from the slaughterhouse (A.O. 32)

7.  Availability of funds for the construction of the livestock "oksyon" market facilities.

8.  The project site should be owned by LGU's, Cooperatives and NGO's.

9.  Can implement the R.A. 7394 (Consumer Act) and R.A. 8485 (Animal Welfare Act)

SECTION 3. Requirements for Accreditation -

1. The Local Government Units, Cooperatives and other interested Non-Governmental Organizations shall provide the following:

a.  Resolution Letter - the city/municipal, cooperative and NGO shall pass a resolution letter that they are interested in LOM establishment and willingness to support the program of the Department of Agriculture.

If cooperatives, NGO's and other private parties are interested to establish an LOM in the area, they shall bind/waive an agreement with the city/municipal government that the LGU is not interested to put a livestock "oksyon" market.

b.  Benchmark Information - shall be submitted together with the resolution letter.  This information is vital in the evaluation of proposed livestock "oksyon" market.

c.  Site - the project site shall be owned by the LGU, Cooperative or the NGO's and at least 1/2 or .5 hectare with additional space/area for expansion.

d.  Facilities - the interested parties shall provide the following facilities.

d.1  Office and scale house
d.2  Sheds, pens, tie rails, corrals with water and feeding troughs
d.3  Loading and Un-loading ramps
d.4  Perimeter fence - for identification purposes to ensure security of the animals and better collections of fees
d.5  Water and lighting amenities

e. Weighing Scale - mechanical (dial) or digital weighing equipment with maximum capacity of 1 ton or 1,000 kilograms.

f. Personnel* - the interested party shall provide the following personnel.

f.1  Market Manager/ Livestock Market Superintendent
f.2  Livestock Inspector/Veterinarian
f.3  Livestock Grader/Weigher
f.4  Yardman/Helper
f.5  Office staff
f.6 Security Guard
*Number of personnel depends on the working load at the livestock "oksyon" market

2.  The Bureau of Animal Industry shall provide layout, plans and design to the local government units, cooperatives and other interested non-government organizations thru the Department of Agriculture Regional Field Units.

SECTION 4. Application for Accreditation - Accreditation of the livestock market shall be handled by the Marketing Development Division (MDD) of the Bureau of Animal Industry (BAI).  The Department of Agriculture Regional Field Units (DA RFUs) shall endorse/recommend the proposed project to the BAI if found feasible.

SECTION 5. Essential Requirements Before Approval of Accreditation - Prior to approval of accreditation, a team from BAI will inspect the site and facilities and see to it that the livestock market is in accordance with the facility requirements set by the Bureau of Animal Industry.  The livestock market operator shall pay to the Cashier's Office, Bureau of Animal Industry the following fees:

Type of Fee

1. Inspection Fee P 500.00
2. Accreditation Fee 2,000.00

SECTION 6. Issuance of Accreditation - Before the start of operation, a tripartite agreement will be signed by the livestock market operator, the Bureau of Animal Industry and the Department of Agriculture Regional Field Units stating the responsibilities of each party during the inauguration of the livestock "oksyon" market.

SECTION 7. Renewal of Accreditation - The accreditation is valid for one (1) year only and application for renewal should be at least one (1) month prior to expiration date.

SECTION 8. Revocation of Accreditation - Accreditation may be revoked for violation of the BUREAU OF ANIMAL INDUSTRY and the DEPARTMENT OF AGRICULTURE REGIONAL FIELD UNITS rules and regulations or guidelines at any time if the interest of the government so requires.

SECTION 9. Marketing and Operating Procedures -

A. Maintenance of Livestock Market Facilities

9.a.1 The manager shall oversee the smooth operation by maintaining the cleanliness the market.

9.a.2 Maintain the weighing scale in good condition.

B. Entry of the Animals (Bio-Security Measures)

9.b.1 The Livestock Inspector/Animal Health Officer shall inspect the animals for infectious diseases before entering the livestock "oksyon" market.  Only the healthy ones will be tagged, weighed, graded and yarded to specific sheds, corral or pens while awaiting buyers.

9.b.2 The Livestock Inspector/Animal Health Officer or the Quarantine Officer shall verify the approved handlers license and accreditation of transport vehicles.

9.b.3 All vehicles should be properly disinfected and subject for wheel bathing.

9.b.4 A footbath should be provided in the entrance/exit gate of the livestock "oksyon" market.

9.b.5 Livestock "oksyon" market should be established away from slaughterhouse (Administrative Order No. 32)

C. Suspected Sick Animals

9.c.1 The authorized Veterinarian/Quarantine/Livestock Inspector shall see to it that the suspected sick animals are properly handled/quarantined.

D. Payment of Market Charges

9.d.1  Management should see to it that livestock market charges are properly assessed and collected.
Specie Fee1
Transfer Certificate
Ownership Certificate
Yardage Fee2
Corral Fee 3
Lodging Fee4

1 - fees collected upon the entrance of the livestock "oksyon" market for the service rendered by the personnel

2 - for the use of the livestock "oksyon" market facilities

3 - for the use of facilities on a daily basis

4 - cost of feeds

E. Exit of the Animals (Exit gate)

9.e.1  The buyer shall present all necessary receipts/papers to the personnel/security guard.

9.e.2  Personnel/security guard assigned at the exit should verify the necessary documents prior to release of animals.

SECTION 10. Duties and Responsibilities of the Livestock "Oksyon" Market Personnel -

10.a Livestock Market Superintendent/Market Manager

10.a.1  Supervise and oversee the whole livestock market operation.

10.a.2  Maintain highest possible order of service of the livestock market personnel.

10.a.3  Imposition of bio-security measures in and out of livestock "oksyon" market premises.

10.a.4  Prepare transaction report (volume, price and origin)

10.a.5  Prepare the work and financial plan of the livestock "oksyon" market.

10.b Veterinarian/Livestock Inspector

10.b.1  Inspect all animals entering the livestock market.

10.b.2  Implement bio-security measures.

10.b.3  Report occurrence of diseases or any symptoms of animal disease in the livestock market to the proper authority.

10.b.4  Help in maintaining good sanitation.

10.c Weigher/Livestock Grader

10.c.1  Weighed all animals entering the livestock "oksyon" market.

10.c.2  Issue weighing slip to seller.

10.c.3  Maintain the weighing scale in good condition.

10.c.4  Grade each animal that passed through the weighing scale based on BAI grade.

10.c.5.  Issue grading slip with approximate price of the animals to owner.

10.c.6  Record all animals graded.

10.d. Yardman/Helper

10.d.1  Maintain cleanliness and good sanitation in and out of the livestock "oksyon" market premises.

10.d.2  Maintain the livestock "oksyon" market facilities in good condition.

10.d.3  Direct all animals to the weighing scale.

10.d.4  Direct all animals to holding area/sheds.

10.e Security Guard

10.e.1  Maintain peace and order in and out of the livestock "oksyon" market.

10.e.2  Verify necessary documents of the animals from the buyers/sellers before entering and leaving the livestock "oksyon" market premises.

10.f Collecting Officer

The Collecting officer must come from the Office of the City/Municipal Treasurer.

10.f.1  Collect fees and issue receipts.

10.g Office Staff

10.g.1  Prepare Transfer Certificates

10.g.2  Register buyers

10.g.3  Prepare release paper for animals sold

10.g.4  Make all necessary calculations and do paper works for buyers and sellers

10.g.5  Keep office record of all transactions

10.g.6  Keep time record and work sheet for all employees

SECTION 11. Monitoring - For purposes of monitoring, Inspection of livestock market will be done twice (2x) a week by assigned Veterinary Quarantine Officers (VQO) in the municipality, city or provincial level.  The Marketing Development Division (MDD) of the Bureau of Animal Industry shall prepare a list of accredited livestock "oksyon" market and provide copy to all LGU for purposes of verification.

The Market Manager will prepare a MONTHLY TRANSACTION REPORT to be submitted to the Marketing Development Division of the Bureau of Animal Industry and the Department of Agriculture Regional Field Units every second (2nd) week of the following month.

SECTION 12. Cooperating Agencies -

12.a DEPARTMENT OF AGRICULTURE (DA) will review and approve program policies and coordinate administrative enforcement.

12.a.1. Bureau of Animal Industry

12.a.1.1  Formulate and implement rules, regulations and policies regarding operation of the livestock "oksyon" market.

12.a.1.2  Provide plans and design of the livestock "oksyon" market facilities.

12.a.1.3  Conduct seminar/work on the operation and management of the livestock market.

12.a.1.4  Conduct/assessment/evaluation of the accredited livestock "oksyon" market facilities and the weighing scale unit.

12.a.1.5  Develop programs with the livestock market operators in the improvement of services, facilities and disease eradication measures for livestock.

12.a.1.6  Provide loan in the form of weighing scale to interested municipalities/cities.

12.a.1.7  Coordinate in the implementation of R.A. 8485 and R.A. 7394

12.a.2 Department of Agriculture Regional Field Units

12.a.2.1  Assist BAI in implementation of this Order regarding the establishment, operation, management and accreditation of stockyards.

12.a.2.2.  Assist BAI in the conduct of assessment/evaluation of proposed and operational livestock "oksyon" markets.

12.a.2.3  Provide disease eradication measures and control services in the livestock "oksyon" markets.

12.a.2.4  Provide technical assistance to LGU to support continuous livestock production.

12.a.2.5  Supervise and assist in the implementation of R.A. 8485 (Animal Welfare Act) and R.A. 7394 (Consumer Act)

12.b DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (DILG) will be responsible in the full cooperation of all local government units in the implementation of this order.

12.b.1. Local Government Units

12.b.1.1  Create a permanent position of Market Superintendent to oversee the smooth operation, continuity and sustainability of the livestock "oksyon" market.

12.b.1.2  Adopt this Administrative Order.

12.b.1.3  Assist in the implementation of this Administrative Order through the Provincial Veterinarian.

12.b.1.4  Assist Department of Agriculture in control and eradication of animal diseases.

12.b.1.5  Implement rules, regulations and policies regarding operation and management of livestock "oksyon" market.

12.b.1.6  Develop continuous livestock production programs for the sustainability of the livestock "oksyon" market.

12.b.1.7  Payment of monthly amortization of weighing scale loan.

12.b.1.8  Registration of all sellers/traders in the livestock "oksyon" market for proper identification.

12.b.1.9  Appropriate twenty percent (20%) of the gross income of the livestock "oksyon" market for its improvement of the facilities and repair of the weighing scale.

12.b.1.10  Implement the provision of R.A. 7394 (Consumer Act) and R.A. 8485 (Animal Welfare Act)

SECTION 13. Closure of the livestock "oksyon" market - Failure by the livestock "oksyon" market operator to comply with the BAI policies and regulations regarding the market operations shall be ground for closure.

SECTION 14. Penalties - The Municipal Mayor/livestock "oksyon" market operator found to be violating this Order, shall be subjected to a fine of not less than One Thousand Pesos (P1,000.00) but not more than Ten Thousand Pesos (P10,000.00) or imprisonment of not less than two (2) months but not more than one year, or both, upon the discretion of the court, pursuant to Article 19 of Republic Act No. 7394.

The Accreditation issued by the Director of the Bureau of Animal Industry shall be revoked if found to be violating any section of this Order.

SECTION 15. Effectivity - This order shall take effect fifteen (15) days after the publication of the same in the Official Gazette, and filing three (3) copies thereof with the UP Law Center.

Adopted: 10 Aug. 2004

Department of Agriculture

Recommended by:

Director IV
Bureau of Animal Industry
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