I

Republic of the Philippines i..

"-{.F
r
OFFICE OF THE SECRETARY '..
,1i
tf"
.,,

Ellipdcal Road, Diliman ct

L.
,r, t\r 1 100 Quezon City a qfit 0 c022
1tgt
tr
a

MEMORANDUM CIRCULAR
tqo. 0l
Series of2022

SUBIECT: AMENDED GUIDELINES ON THE IMPLEMENTATION OF [Link]

SWINE PRODUCTION, REPOPULATION, AND EXPANSION THROUGH FARM
CLUSTERING AND CONSOLIDATION AS ENUNCIATED IN THE INTEGRATED
NATIONAL SWINE PRODUCTION INITIATIVES FOR RECOVERY AND
EXPANSTON (TNSPTRE) PROGRAM

WHEREAS, in the exercise of the mandate of Section 7, Chapter 2, Book IV of Executive Order No.
292 entitled: Instituting the Administrative Code of LgB7, the Secretary of the Department is
empowered to promulgate rules and regulations necessary to carry out department objectives,
policies, functions, plans, programs and projects; and issue administrative orders necessary for
the efficientadministration of the offices under the Secretary and for proper execution of the laws
relative thereto;

WHEREAS, the Department launched the Integrated National Swine Production Initiatives
for Recovery and Expansion (INSPIRE) to implement calibrated repopulation and
enhancement of the local swine industry to recover the sector's capacity to produce sufficient
supply ofhogs and pork;

WHEREAS, the Department also launched the Bantay ASF sa Barangay or BABay ASF program
to complement the INSPIRE Program, with the aim at instituting biosecurity and disease control
measures with strong collaboration between the Department of Agriculture, its relevantagencies,
with concerned Local Government Units (LGU), and stakeholders taking ownership of such
program benefitting the farmers;

WHEREAS, Bayanihan Agri-Clusters is one of the key strategies of the Department of Agriculture
to achieve its ONEDA REFORM AGENDA with consolidation, modernization, industrialization, and
professionalization as it four pillars;

WHEREAS, "clustering" is one of the strategies of implementation of INSPIRE PROGRAM and as

embodied in the Farm and Fisheries Clustering and Consolidation (F}CZ) Program would be key
to consolidation and eventual modernization of the swine farmers and the industry;

NOW, THEREFORE, pursuant to the provisions mentioned above and several previous issuances
and Memoranda, this Order is hereby promulgated and issued by the Department of Agriculture
(DA).

A -secure &nd' re s ilie nt ? liilippines

'witli ertqpt1t11, e red' andyrttsye rous fanners andfisfterfo (fr.

Wtr,zrPtPlts
 Section I
Scope and Obiectives

This Memorandum Circular is aimed to provide guidance and basis for the orderly and proper
implementation of INSPIRE's Component 1, calibrated repopulation and expansion of production
through farm clustering and eventual consolidation, regardless of zoning classification.

The private sector is likewise encouraged to adopt such clustering strategies for their
repopulation and expansion efforts,

Section II
Deftnition of Terms

As used in this Guideline, the following terms, words, and phrases shall be construed as:

Cluster - A group of farmers, with a minimum of 30 members residing in a given locality with the
business-type activity of swine production, or having the intention of doing a business-type
activity of swine production; it also refers to a group of swine farmers as used in DA
Administrative order [AO) No. 7, Series 202l,lmplementing Guidelines for the "Bantay ASF"
Program.

Clustering - A strategic approach that involves organizing individual farmers from a specific
locality into a group doing a similar business-type activity

Community-based Farming- is a holistic model initiative Farming system or production that is

based in the community where the farmers reside

Compartment - A swine subpopulation contained in one [1J farm or farm cluster with a strictly
supervised biosecurity management system where surveillance, enhanced biosecurity and
movement monitoring are applied for the purpose of maintaining ASF freedom, trade and
business continuity.

Consolidation - The strategy of pulling together the areas and resources of farmers to achieve
economies of scale in production and the harvestto enable the f;armers to negotiate better prices.

Farmers' Cooperatives and Associations - as used in this guideline would refer to the group
of individuals who have undergone social preparation and duly registered by any recognized
government agencies [i.e., SEC, DOLE, DA& DAJ with at least 50% of its members engaged in
swine-raising; FCAs also refer to duly-registered hog raisers' group, integrators, contract growers
and agrarian reform beneficiaries organization IARBOs)

Section III
Rationale and Program Description

The 3-year INSPIRE Program offers mixed interventions to jumpstart the ASF
industry. Further, despite the develoned- swine sub-sector. a larse I
cure dnd rcsi[ient PltitiilpineF
e [Link] t r,{ e re d at tc{
-p
r os-}re rotts .farmer S antr-fis fierJO(k
production is accounted for by small hold raisers. At the same time, there is a glaring Iack of
integration in the value chain. Information gathered during stakeholder consultations indicate
that as much as 90% of the swine trading is channeled through traders andf or middlemen.

Indeed, the ASF problem presents the opportunity of rebooting modernizing, and re-structuring
the industry for efficiency, sustainability, and disease resiliency.

While the primary focus of the INSPIRE is on increasing swine inventory and breeder base, the
Program also takes particular attention to clustering and consolidation strategies, specifically of
small-hold farm compartmenG, to facilitate technical support services and other interventions
along the value chain.

The program also includes implementing biosecurity plans anchored to the BABayASF programs
in support of repopulation efforts. Government financial institutions also offer concessional and
flexible loan terms to the commercial raisers, who lost 30o/a of their breeder animals as per the
latest PSA data, to hasten the recovery.

As such, calibrated repopulation

will be executed through clustering and consolidation. Following
one of the New Thinking in Agriculture paradigms, the beneficiaries shall be organized into
clusters of farm compartments.

The clustered compartments shall adopt modern climate-controlled building systems and
Biosecurity Level 1 compliant facilities for disease resilience. Facility management shall be
through paid labor. Likewise, this cluster shall continue to follow the requirements to ensure
freedom from ASF as embodied in Administrative Order Nos. 6 and [Link] is expected that this
approach would facilitate production support services, technical support, and monitoring
organized by the farmer cooperatives and associations [FCA) under the supervision of the LGU
veterinary office or the Bureau of Animal Industry [BAI). Clustering would enable marketing
efforts to be more efficien! and the prospects of value addition and maximized profits can be
realized.

As one recommended scheme, the FCA swine clusters or compartments will be encouraged to
pursue a contract growing arrangement with swine integrators. This will ensure the sustainable
supply of piglets, breeders, feeds, access to markets, and overall logistical supporL The local
government units shall be required to provide veterinary and technical assistance and policy and
administrative support. The institutional framework for the implementation is presented in
Figure 1.

SECTION IV
Institutional Framework

Figure 1. Institutional Framework for the Community-Based Swine Production

through Clustering and Consolidation

A rs e c ur e and' re s i tient ? hitlppine s

vitli f,Wrynuq
enlltitw e rect' attd_1tr osyerous farmers andfislierfoft
tota'&n M I
 ,,Ltlonql GNrnrunt
Suppon:
IilIEGRATOn/ tGTJ
FEIOSUPPUTN
[Link], Proc€int
. Bantay ASf sa Barangay
.INSPIRE
srP!,
I
. Capability
Building
. Profes5ioMl Services Market
acPg + . lnstitutional Markets
$ta . Wet Markets
. Meat Shops
. Loan Facility . Kadiwa niAni at Kita
(:nm.rrr4:rt hbrll

Section V
Responsibilities

The following agencies and offices are responsible in the preparation, funding, and
implementation of the Projects:

A. Farmer Cooperatives and Associations (FCAs):

a. Apply and comply with the requirements
b. Ensure the organizational integrity of the FCA and its members.
c' Ensure compliance with the approved Project Document for the attainment of the
target volume of production
d. Ensure the sustainability of the project
B. Local GovernmentUnits (tGUs);
a. Provide necessary technical support to the FCA in the preparation and
implementation of the projects;
b. Facilitate issuance of clearances and permits compliant to local zoning and other
regulations; and
c. Implement BABay ASF Program.
C. Department of Agriculture
a. NationalLivestockProgram:
i. Provide project steering and overall guidance and supervision to all units
concerned;
ii. Consolidate and validate the list of potential beneficiary FCAs to be
endorsed by the Secretary or representative for approval;
iii. Facilitate MOA signing with qualified FCA beneficiaries;
iv. Provide policy support and coordination with GFIs; and
v. Provide budget to fund eligible components subject to fund availability.

A -l'oo d: se c ur e and' re si llent ? [Link] s

enTpi\t, e re d anrfyrospe rotts farmet s and-fXlierfo{k
 b. Regional Field Office - The DA RFOs shall:
i. Promote this Project for greater awareness;
ii. Prepare Iist of selected potential beneficiary FCAs and LGUs and submit to
NLP;
iii. Determine those FCAs that are willing to apply to the DA (if funds are
available) and to the GFIs under credit programs financing;
iv. Assist the interested FCAs in complying with requirements that shall
include but not limited to organization and institutional developmen!
proposal preparation, MOA signing, and technical assistance; and
v. Manage funds lodged at the RFOs for this Project from the application
period, processing, fund transfer and implementation; and
vi. Release funding to FCA immediately after MOA is finally signed and all
requirements are complied.

C. Agribusiness Marketing Assistance Service/Divisions:

i. Assist in linking with GFIs, swine company integrators, feed companies
that could be potential partners in the implementation of the Projec! and
ii. Assist the beneficiaries in the aspect of marketing and market linking.
d. Agricultural rraining Institute - Regional rraining center(ATI-RTC),
including International Training Center on Pig Husbandry IITCpH):
i. Promote the Project for greater awareness;
ii. Assist FCAs in complying with the requirements that include but not
limited to organization and institutional development, proposal
preparation, MOA signing and technical assistance; and
iii. Manage funds that are lodged at ATI for this Project from the application
period, processing, fund transfer, and implementation.

Section VI
Proiect Package, Fund Grant and Schemes

The Department of Agriculture provides a Five million and Five hundred thousand
[Php5,500,000J fund grant for every recipient of this Project. For purposes of allocating the
financial assistance, the following expenses are allowed:

1. The establishment of a Biosecure Facility (inclusive of the perimeter fence, climate-controlled

animal house, waste management basic farm equipment, office, shower area) is a minimum
land area of 2,000 square meters
2. Feeds and biologics
3. Piglets

The National Livestock Program Central Office should approve any modification of the funding
coverage. Moreover, the beneficiary shall adopt the housing /faciliLy design recommended by the
National Livestock Program as minimum requirements in setting up the Project as provided for
in Annex A.

A.l oo d: se c ur e {t nd' re sitient ? [Link]

iloreqaarng,
entp ot, e re c{ and-prospe rotts farmers andfis fierfo{k
iltoWor lut
Below are the various packages which the recipient/beneficiary may optto avail:

A. Recommended Proiect Package

1. FCA without Existing Facilities

This scheme is for qualified FCA fsee Section VII) which opts to establish a new facility and
whose distribution of expenses would be guided by the following

FUNDING COVERAGE
AMOUNT (PHP)
Biosecure Facility (inclusive of perimeter fence, climate-
controlled animal house, waste management, basic farm
equipment, office, shower area) 4,100,000.00
Feeds/biologics support 500,000.00
Piglets * 900,000.00
TOTAT 5,500,000.00
xlnitial stocking of 150 heads

The FCA may enter into a contract growing scheme with a partner integrator/farm/feed
supplier wherein piglets, feeds, biologics and other related inputs may also be supplied by the
partner swine company, integrators andf or feed company as covered in their Deed of
Undertaking,

2. FCA with Existing Facilities

This scheme may be availed by qualified FCAs and their members (section II & Section VII), where
existing un-utilized/abandoned facilities that can be retrofitted cost-effectively. Some members
[e.g., ten members) of the FCA may avail of fund grant. The fund grant shall cover the retrofitting
of existing facilities, procurement of piglets, feeds, and other biologics specified in the Project
document, subject to the final approval of the National Livestock Program. The retrofitted
facility/s shall conform with Biosecuri{y Level II as defined in the checklist contained in AO #7.

3. FCA with a Contract Growing Agreement

Contract growing agreement may be entered into by a qualified FCA [See Section VII). The FCA
and its partner contract grower may propose a modification of the breakdown of the fund grant
specified in Section VI 41 subject to the final approval of the National Livestock Program Central
Office. Likewise, facility design should conform to the minimum requirements specified in Annex
A and be validated by the Regional Agriculture Engineering Division IRAED).

B. Alternative FCA Cluster/Compartments Scheme

This scheme provides the establishment of farm compartments for ASF prevention & control.
The scheme implements the general principles of risk assessment, biosecurity mal
Husbandry Practice (GAHP)J, and traceability. It enhances disease
.A foorfsecure [Link] resi{ient ?hitip_pines

e nypov e re d artdyr ospe rotts Jarmers andfisfierfot6

and emergency response in case of ASF outbreaks to support animal health and welfare,
consumer safety as well as business continuity.

To establish compartment[s) with ASF disease-free status, the compartment shall be clearly
defined in its operations, The locations of all its components and related units will be clearly
identified, e.g., feed mills, slaughterhouses, rendering plants (if any), farms within the
compartment, The epidemiological separation fsurveillance) between the animals in a
compartment and subpopulations with different health status will be ensured in the
compartment. Figure 2 provides the illustrative scheme of a compartment.

GP Farm GP Farm

--a

h
Genetic Nucleus

'
PS Farm
.-....{
I PS Farm PS Farm
I
f

n^^ Abattoir
Iumml GROW OUT FARMS
(subject to
regular audit)
All In - All Out System
Feed Mill
(subject to
SWINE FARM ASSOCIATION
regular Audit)
(each farm is a Compartment - all implement same Biosecurity management)

Section VII
Minimum Requirements

This Project can be availed by organized and active FCAs who desire to undertake modernized
swine raising compartments using the community swine clustering model. The following
qualifications must be considered :

A. Areas
1. LGUs with existing BABay ASF-related Ordinances/Executive Orders; compliant with the
protocols under DA Administrative Order No. 3 0, seri es of 202\, Guidelines on the Recovery
and Declaration of Freedom from African Swine Fever [ASF) for Local Government Units
(LGU).
2. Must be released from quarantine (where applicable);

It is understood that areas under the remaining zoning classification may repopulate
or expand anytime following existing rules and regulations of the government

B. FCA Applicants
A io o d: s e c ur e and' re s ilierut ? [Link] s

e nyp ot,, e re d' anc(_1tr os1n rous Jarmcrs andfU fierjoft

 1,. With at least thirty (30) swine-raising members preferably from ASF-affected areas and
who are RSBSA-registered;
2. Atleast50%ofparticipatingmembers(SectionVIIBl)musthaveexperienceinoperating
and managing a swine enterprise;
3. Must be willing to provide the land, maintenance and labor as counterparts;
4. Must be willing to undergo the process of swine repopulation and Biosecurity training for
farm compartments;

5. No existing unliquidated funds from DA or its any attached agencies;

6. Must be accredited/registered to either SEC, DOLE, CDA, or any government accrediting
body.

Section VIII
Application Procedure for Inclusion in the program

A. Requirements for Application

t. Letteroflntent
Z. Endorsement from LGU (Municipal, City)
3. Certificate of Release from Quarantine (where applicable)
4. ProjectProposal
5. Duly notarized Deed of Undertaking that the FCA will enter into an agreement with an
Integrator/ Piglet Supplier/ Feed Supplier

B. Requirements for the MOA signing

1' Approved Program Document/ Project Proposal based on the DA's prescribed program
design signed by the head, endorsed by RFOs, approved by the NLp
irector/U ndersecretary for Livestock/Secretary
D

2. Board/ Council Resolution Authorizing the Head/Representative to Enter into MOA or

any Document that gives Authority to the Head/ Representative to enter into MOA
3. Proof of Land Ownership: Land title/ tax declaration/ usufruct fif involves
establishment of structure)
4. Compliance of proposed location with Iocal zoning other regulations
5. Organizational Legal Documents/ Identity and Registration
6. List of Officers and Members
7. Accreditation/ Registration Certificates from either SEC, DOLE, CDA, or any government
accreditation body

C. Application Process

Activity Procedure Responsible Time Frame

Submission and L. Submit application FCA (assisted by One day

Review documents to DA-RFO LGUs/RFos)

2. Review the submitted DA-RFOs Two days

\
-secure fin res 1"en

e ntp ov, e re d and-_pr os |2e rotts farmzrs andfis lierptQ

 documents

3. Complete any lacking FCA Five days

documents and resubmit to
[Link]

4. Revise proposalas deemed FCA/LGU Five days

necessary by DA-RFOs

On-site evaluation !. Validate beneficiary and the [Link], LGU One day
location ofthe Project
(applicant must have a
minimum of 60 pointsJ

2. Approve Project Proposal DA-RFO Two days

Compliance with Processing of permits and FCA, LGU One month

local clearances
requirements

Preparation and 1. Prepare, discussand agree DA-RFO, LGU I 20 days

Signing of MOA on the provisions of the MOA FCA

2. MOA Signing DA-RFO, LGU / Five days

FCA, DA-NLP

Fund Transfer 1. Fund transfer as stipulated in DA-RFO Five days

MOA and existing rules and
regulations on transfer of
funds

Implementation 1. Monitoring of project [Link] One day

implementation [e.g.,
construction of facilities

2. Testing and commissioning RAED One day

Liquidation 1. Submit liquidation report as LGU / FCA Within 12

per COA rules and regulation months from
completion of
the facility
construction
* The ATI-RTC, including the ITCPH, shall likewise follow the abovementioned application
process in managing and distributing funds lodged therein.

-secure an d' r e s ilient ? [Link] s

witli ent polr,e re d' antl--prttsye rous farmzrs an{-fis herfoffi

 \./

Section IX
Supplementary Guideline

The DA-RFOs may issue a supplementary guideline to facilitate the orderly implementation of the
Project.

Section X
Effectivity

This Memorandum Circular shall take effect immediately upon signing and shall be valid unless
revoked and superseded by future issuances.

Done this l# ary or janvart4 2022 in Quezon City

\
C;C,
WILLIAM D. DAR, Ph.D.
Secretary
/t
OEPARTMENT OF AORICULTURE

r ililililt ilt illilr ilil ililt fl fl il ilr

ilil1fl t ililil l]ililil
ln [Link] pls clt! thls cod. :
For Signature: S-01-22-01 S4
[Link].d i O1llf nO22 12:69 PM

A.f ooct: se cur e and' re s ilient ? [Link]

witli ent p,tv,e re d atu{yrtlspe rous farrners anetfis fierfotk
 l
0 0 0 00
{ fz 'r
,! ut c
-o
1 f 9
2 I qz
i F
z
E
-.,]
I z
<)

zJ f;
o
c
@
z
I
o

ir
I
I

0
!! I

L
slo

-t?
t;
t;
le
o a-l
l" o --1 z
o ',a
e
A
i
N) H+
'2n
O)
O ri N)
O
O
O ?d
rrl
z--l
;16 g -o
r
?IF
z
tit.'
IJ
l-!
l. 0
g
:r

i.
N
o
o
o o
o
d. o

r L
6
o
KEY ITEM QUANIITY DESCRIPTION
c1f HOPPER 1 TONS FEED CAPACITY
(D FINISHER BUILDING LOCAL BUILDING
(3) AUGER 60 2 6OMM AUGER FEED SUPPLY 2 ROWS OF 10 PENS
(+, BUILDING IS CURTAIN SIDED
(b) BOX TEEDER 1Q 2X4 SST BOX FEEDER
PENS ARE 4.3 X 3.15 METERS CEILING HEIGHT IS 2.40 METERS
G) 15 ANIMALS PER PEN
rF)
AT 0.9 SQ.M PER ANIMAL FLOORING IS TOTAL CONCRETE SLATS
EXHAUST FAN 5O'' GALVANIZED CONE FAN
CD EXHAUST FAN 2 ffi (EXCEPT WALKWAY)
(ID
[Link] 0.6 M GANG SLATS
COOLING PAD
COOLING PAD
2
2
[Link]
1.8 X 4.8 M. WRAP SYSTEM
lROWOFO.9MX 0.6 M GANG SLATS

) 45000
*] 000 4300
1 1 000
N.?t
/F\
\:r/ o @ A
\9-l @
@
@ u--y u-ti v-_\
4i 50
8450 -[
@
JI rtr (
\t_!/ ,a
\_9/
/'F\ \:r/ q9, @ @ t
I z-.\i v\ u-ry UJ l @
I
t )(

lr
4000 I
lo
)
I
o
3800

P,ojucl TitlLl PR arcdby: }lvicwud l,y: L'rilried Comrt by: [Link]$mE$dirs Approeal: [Link] ConhDt: Sicrl No :

FratsHEE BUILDtXG 2X150

l?'
Ronnie F. Mercado Engr, Enrmanuel R, Lanuza Engr. Juana T. Tapet. PhIl Engr, Ariodear C. Rico
EOUIPMENT AND AUILDINC LAYOUT A-01