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Section 1.    Declaration of Policy. — Recognizing the importance of the dairy industry on the development of the national economy, it is hereby declared to be the policy of the Government of the Philippines to promote and encourage the development of dairy industry so as to achieve self-sufficiency, at least, in milk and dairy products and to improve the health and standard of living of the people.

Sec. 2.    In order to provide financial assistance to persons engaged or to engage in the dairy industry, the Development Bank of the Philippines shall set aside and make available annually for a period of ten years the sum of ten million pesos to be loaned to processing plants, dairy farmers, farmers raising cows, goats and caraballa for dairy purposes: provided, that for one-half of the said sums the maximum amount of loans granted under this Act shall not exceed the value of ten milking cows for each borrower: provided, that no loan shall be granted three months before the election.

Sec. 3.    To implement the policy enunciated in Section one hereof, the Bureau of Animal Industry shall have the following powers and  duties;

(1)    To promote and develop caraballa, cattle and goat dairying;

(2)    To establish dairy breeding farms, herd improvement associations, artificial insemination centers in strategic places in the country to propagate dairy livestock for sale and/or distribution on a fifty-fifty sharing basis of the offspring to prospective dairy farmers, family-size farms and commercial dairy farms. The first born and every other offspring thereafter shall automatically belong to the Government and the rest to the corresponding dairy farmers, family-size farmers and commercial dairy farms: provided, that the Government's share shall be sold or disposed of in the same methods;

(3)    To issue plans, programs and disseminate information relative to dairy farming in order to help dairy farmers in their ventures;

(4)    To extend technical assistance to dairy farmers and agencies connected with the development of the dairy industry;

(5)    To define and delineate dairy development districts and satisfy dairy breeds of animal that may be imported or propagated in the country;

(6)    To establish, maintain and operate, and later sell to qualified persons, milk collection and chilling centers, processing plants and other services in aid to marketing and to purchase milk to be processed in said plants;

(7)    To import dairy animals to be propagated by the Bureau for sale at reasonable cost, which shall not be less than the book value thereof, to private parties;

(8)    To provide necessary personnel for the implementation of this Act, subject to the requirements of the Civil Service Law, WAPCO regulations and such orders relative thereto;

(9)    To perform such other functions as may be necessary to carry out the provisions of this Act.

Sec. 4.    To carry out the powers and duties provided for in Section three of this Act, there is hereby appropriated out of any funds in the National Treasury not otherwise appropriated, the sum of fifteen million pesos, which shall constitute a dairy revolving fund to be expended by the Director of Animal Industry and which shall be made available immediately upon the approval of this Act.

Sec. 5.    Subject to the approval of the Secretary of Agriculture and Natural Resources, the Director of Animal Industry shall promulgate rules and regulations to carry out the aims and purposes of this Act.

Sec. 6.    To provide funds for dairy research and the training of manpower, there is hereby appropriated annually the sum of one million pesos out of any funds in the National Treasury not otherwise appropriated, for the use of the dairy training and research institute, under the academic supervision of the University of the Philippines: provided, that any income derived from the activities of the institute shall be available for expenditure by it until expended.

Sec. 7.    At the end of each fiscal year following the approval of this Act, the Director of Animal Industry shall submit a report to the President of the Philippines, and to each and every Member of the Congress of the Philippines, covering all activities during the fiscal year with respect to plans, accomplishments and expenditures under this Act.

Sec. 8.    This Act shall take effect upon its approval.

Approved: June 18, 1964

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