4.7.

PRODUCT STANDARDIZATION AND CONSUMER SAFETY

The Philippine Agriculture and Fisheries Quality and Safety System 4.7.1.The agriculture and food standards formulation and enforcement functions are shared by the Department of Agriculture (DA), the Department of Health (DOH), the Department of Trade and Industry (DTI) and the local government units (LGUs). The powers, roles and responsibilities of these agencies are defined by at least six laws that directly relate to AFMA, including: (a) (b) (c) (d) (e) (f) Standardization Law of the Philippines of 1964; Food, Drugs and Devices, and Cosmetics Act of 1963, as amended by Executive Order 175, Series of 1987, Local Government Code of 1991; Consumer Welfare Act of 1998; Fisheries Code of 1998, and Executive Order 338 of 2001.

The Standardization Law of the Philippines 4.7.2.The Standardization Law of the Philippines (Republic Act 4109) enacted in 1964 established the Bureau of Product Standards (BPS) under the Department of Trade and Industry (DTI) (then the Department of Commerce) as the National Standards Body (NSB) of the Philippines. BPS supports industry and protects consumers' welfare through: development and promulgation of standards, product testing and certification; accreditation of competence and capability of testing and calibration laboratories; accreditation of management system of certification bodies; national registration scheme for quality assessors; international cooperation on standards and conformance; and training programs on international standards, product certification and other standardization activities. 4.7.3.Primarily, the BPS undertakes the development, promulgations and promotion of Philippine National Standards (PNS) to ensure the Philippine consumers will get the value of their money. BPS provides services to the public and provide necessary technical infrastructure to make Philippine companies more competitive. BPS in involved in the development and application of national, regional and international standards, of which many are developed in partnership with technical committees and working groups. As Philippine representative in the International Organization for Standardization (ISO), BPS ensures that Philippines' voice is heard, worldwide.

4.7 - 1

Table 4.7.1 Functions of Agencies Mandated by AFMA and Other Related Laws
Functions Technical Services & Research BAFPS with: BAI, BFAR, BPI, BPRE, CODA, FIDA, FPA, NMIS, NTA, PCA, PFDA, SRA & BAR DOH - BFAD & NNC DOST ITDI BFAR, PFDA DOH-BFAD DA DTI BPI LGUs DOH-BFAD BFAR, BFAR-FIQS, PFDA LGUs DOH-BFAD DA DTI BPI LGUs DOH-BFAD

Laws Agriculture & Fisheries Modernization Act (AFMA) of 1997 RA 8435

Standards Development & Promotion BAFPS with: BAI, BFAR, BPI, BPRE, CODA, FIDA, FPA, NMIS, NTA, PCA, PFDA, SRA, and AMAS, AMAS, BAR, & PAS; DOH - BFAD & NNC DOST - ITDI DTI BPS

Industry Compliance & Consumer Protection BAFPS with: BAI, BFAR, BPI, BPRE, CODA, FIDA, FPA, NMIS, NTA, PCA, PFDA & SRA DOH - BFAD & NNC

Fisheries Code of 1998 Consumer Act of the Philippines of 1991 Magna Carta for Small Farmers of 1991 Local Government Code of 1990 Food, Drug and Cosmetic Act of 1963 As Amended by EO 175 of 1987 Phil. Standardization Law Other Enactments

RA 8550 RA 7394

BFAR, BFAR-FIQS, PFDA DOH-BFAD DA DTI BPI LGUs DOH-BFAD

RA 7607 RA 7190 RA 3720, EO 175 S 1987 RA 4109

DTI-BPS NFA-FDC DOST-ITDI

DTI-BPS NFA-FDC DOST-ITDI

DTI-BPS DOST-ITDI

4.7 - 2

Food, Drug and Cosmetic Act of 1963 (RA 3720) As Amended by Executive Order 175 of 1987 4.7.4.The Bureau of Food and Drugs was given the authority administer and enforce the laws regarding the safety and purity of foods and cosmetics, and the purity, safety, efficacy and quality of drugs and devices being made available to the public. In the implementation of the law, the Department of Health (DOH) was tasked to: (a) establish standards and quality measures for foods, drugs and devices and cosmetics; (b) adopt measures to ensure pure and safety supply of foods and cosmetics, and pure, safe, efficacious and good quality drugs and devices in the country; (c) adopt measures to ensure the rational use of drugs and devices, such as, but not limited to, banning, recalling or withdrawing from the market drugs and devices which are not registered, unsafe, inefficacious or of doubtful therapeutic value, the adoption of an official National Drug Formulary, and the use of generic names in the labeling of drugs; and (d) strengthen the Bureau of Food and Drugs. 4.7.5.The Commissioner of Customs in Manila or the Regional Food and Drugs Supervisor is required to cause the delivery to BFAD samples taken at random from every incoming shipment of food, drugs, devices and cosmetics which are being imported or offered for import to the Philippine giving notice to the owner or consignee. Consumer Act of the Philippines of 1991 (RA 7394) 4.7.6.The Consumer Act of the Philippines (RA 7394) was enacted to protect the interest of the consumer, promote his general welfare and to establish standards of conduct for business and industry. The law mandates the government: (a) to develop and provide safety and quality standards for consumer products, including performance or use-oriented standards codes of practice and methods of tests; to assist the consumer in evaluating the quality, including safety, performance and comparative utility of consumer products; to protect the public against unreasonable risks to injury associated with consumer products; and to undertake research on quality improvement of products and investigation into causes and prevention of product related to deaths, illness and injuries.

(b) (c) (d)

4.7.7.The law spelled out the responsibilities of the DOH, DA and DTI in the development and enforcement of standards of quality and safety of products under their respective authorities. The DOH would enforce the rules and regulations with respect to food, drugs, cosmetics, devices and substances; the DA with respect to product related to agriculture; and the DTI with respect to other consumer products and, to develop and provide safety and quality standards for consumer products. The concerned departments were mandated to establish consumer product quality and safety standards which shall consist of the following:

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(a) (b) (c) (d) (e)

requirements as to performance, composition, contents, design, construction, finish, packaging of a consumer product; requirements as to kind, class, grade, dimensions, weights, material; requirements as to the methods of sampling, tests and codes used to check the quality of the product; requirements as to precautions in storage, transporting and packaging; and requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instruction, or requirements respecting the form of warnings or instructions.

4.7.8.The concerned departments were instructed to: (a) adopt existing standards or formulate, develop and propose consumer product quality and safety standards together with business and consumer sectors in specialized technical committees organized for the purpose; (b) upon promulgation of the standards, publicize them and conduct information campaign; (c) make appropriate order for recall, prohibition or seizure from public sale or distribution, consumer products that is found to be injurious, unsafe and dangerous; and direct the manufacturer, distributor, or seller of such defective products to extend any or all of the remedies to the injured person; (d) take measures to make a list of new consumer products and cause the publication by the respective manufacturers or importers of such list of products with their description; (e) establish consumer product standards and grant the Philippine Standard Certification mark after determining the products compliance with the relevant standard; (e) refuse admission into the Philippines of any consumer product that fails to comply with an applicable consumer product quality and safety standard or rule, is or has been determined to be injurious, unsafe and dangerous, is substandard; or has a material defect. 4.7.9.In addition to their powers, functions and duties under existing laws, the concerned departments were given the following functions and duties: (a) undertake researches, develop and establish quality and safety standards for consumer products in coordination with other government and private agencies closely associated with these products; (b) inspect and analyze consumer products for purposes of determining conformity to established quality and safety standards; (c) levy, assess, collect and retain fees as are necessary to cover the cost of inspection, certification, analysis and test of samples of consumer products and materials submitted; (d) investigate the causes of and maintain a record of product-related deaths, illnesses and injuries; (e) accredit independent, competent non-government bodies, to assist in monitoring the market for the presence of hazardous or non -certified products and other forms of violations, other appropriate means to expand the monitoring and enforcement outreach of the department in relation to its manpower, testing and certification resources at a given time; and (f) accredit independent competent testing laboratories.

4.7 - 4

4.7.10.The mandates of the DA under the Consumer Act were elaborated by AO 9 of the 1993 Series. In this AO, eight Bureaus of the DA were given powers to create Product Quality and Safety Standards. These are the National Food Authority (NFA), Bureau of Plant Industry (BPI), Bureau of Animal Industry (BAI), Bureau of Fisheries and Aquatic Resources (BFAR), Sugar Regulatory Administration (SRA), Fertilizer and Pesticide Authority (FPA), Philippine Coconut Authority (PCA) and the National Meat Inspection Commission (now National Meat Inspection Service or NMIS). These agencies and the Fibre Industry Development Authority and the National Tobacco Administration already have existing standards formulation mandates, while the NMIS and BFAR have new laws strengthening their standards formulation and enforcement functions. The Local Government Code of the Philippines of 1991 (RA 7190) 4.7.11.The Local Government Code granted every local government unit (LGU) the powers for its efficient and effective governance, and those which are essential to the promotion of the general welfare, including promotion of health and safety of its inhabitants. Local government units were likewise granted other powers, functions and responsibilities for provision of basic services and facilities, including agricultural support services, services and facilities related to general hygiene and sanitation (such as enforcement of fishery laws quality control of copra, fish ports, public markets, slaughterhouses). 4.7.12.The LGUs were mandated to discharge the functions and responsibilities of national agencies and offices devolved to them, including to regulate and inspect meat, fruits, poultry, milk, fish, vegetables and other foodstuffs; to regulate the slaughter, sale and disposition of animals for human consumption as well as powers to adopt quarantine regulations and prevent the introduction of disease, among others. Fisheries Code of 1998 (Republic Act 8550) 4.7.13.The Philippine Fisheries Code of 1998 (RA 8550) was enacted on 19 February 1998 to ensure the attainment of the following objectives of the fishery sector: (a) (b) (c) (d) (e) Conservation, protection and sustained management of the countrys fishery and aquatic resources; Poverty alleviation and the provision of supplementary livelihood among municipal fisherfolk; Improvement of productivity of aquaculture within ecological limits; Optimal utilization of off-shore and deep-sea resources; and Upgrading the post-harvest technology.

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Table 4.7.2 Product Standardization and Consumer Safety Services Mandate and Functions of Philippine Government Agencies1
GOP Agency Product(s) Covered All agricultural, livestock and fisheries and aquaculture products Mandate, Powers & Functions DEPARTMENT OF AGRICULTURE Bureau of Agriculture and Fisheries Product Standards
Formulate and enforce standards of quality in the processing, preservation,

Bureau of Animal Industry

Meat and meat products, including animal by-products

packaging, labeling, importation, exportation, distribution and advertising of agricultural, livestock and fisheries and aquaculture products; Conduct research on product standardization, alignment of the local standards with the international standards; and Conduct regular inspection of processing plants, storage facilities, abattoirs, public and private markets in order to ensure freshness, safety and quality of products. Recommend policies and procedures on the flow of livestock products and the proper preservation and inspection of such products; Prescribe standards for the quality of manufacture, importation, labeling, advertising, distribution and sale of livestock, poultry and allied industries; Recommend plans and programs, policies, rules and regulations and provide technical assistance in their implementation; Promulgate regulations for the preparation, sale, traffic in, shipment and importation of viruses, serum, toxin or analogous products used for the treatment of domestic animals Issue, suspend and revoke licenses for dispensing or maintenance of establishments for its preparation and treatment; Issuer licenses for its importation, and inspect such products. Regulate the sale of veterinary biologics and medicinal preparation; Protect the interest of the consumer, promote his general welfare and establish standards of conduct for business and industry. develop and provide safety and quality standards for consumer products,

Sources of Information: FAFST, Report on Global Competitiveness for Philippine Agribusiness Product Quality System; SEARCA, Improving Governance in Agriculture Bureaucracy; DA Report on Strengthening Quality Assurance and Other Regulatory Services for Diversified Farm Income and Market Development Project.

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GOP Agency

Product(s) Covered

Mandate, Powers & Functions including performance or use-oriented standards codes of practice and methods of tests; assist the consumer in evaluating the quality, safety, performance and comparative utility of consumer products; protect the public against unreasonable risks to injury associated with consumer product; and undertake research on quality improvement of products and investigation into causes and prevention of product related to deaths, illness and injuries; and Supervise and regulate the establishment, operation and maintenance of slaughterhouses, pet shops, kennel, veterinary clinics/hospitals, stock/stud farm, corrals, zoos for the breeding, treatment, sale or trading or training of animals Issue certificate of registration upon proof that the facilities of such establishment for animals are adequate, clean and sanitary and will not be used for, nor cause pain and/or suffering to the animals; and Revoke or cancel certificate or registration for non-compliance as to standards set by BAI as to the establishments adequacy, cleanliness and sanitation. Promulgate and implement policies, procedures, guidelines, rules and regulations governing post-production flow of livestock and meat and meat products (both locally produced and imported) through the various stages of marketing and proper handling, inspection, processing, storage and preservation of such products; protect the interest, health and general welfare of the meat consuming public; Ensure the production of clean, healthy and sound meat food; Provide technical supervision over LGU meat inspection work and assistance in their technical capability building; Evaluate and accredit meat plants; Enforce meat inspection laws, rules and regulations; Provide laboratory services to the meat industry; Perform inspection on imported meat and meat products; Provide technical assistance in meat plant development; and Promote consumer information, protection and assistance programs. Formulate and implement a Comprehensive Fishery Research and Development

National Meat Inspection Service

Meat and meat products

Bureau of Fisheries

Fisheries and

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GOP Agency and Aquatic Resources

Product(s) Covered aquaculture products

Mandate, Powers & Functions Program aimed at increasing resource productivity improving resource use efficiency, and ensuring the long term sustainability of the county's fishery and aquatic resources; Establish and maintain a comprehensive Fishery Information System; Provide advisory services and technical assistance on the improvement of quality of fish from the time it is caught (i.e., on board fishing vessels, at landing areas, fish markets, to the processing plants and to the distribution and marketing chain); Advise and coordinate with LGUs on the maintenance of proper sanitation and hygienic practices in fish markets and fish landing areas; Implement and inspection system for import and export of fishery / aquatic products and fish processing establishments consistent with international standards to ensure product quality and safety; Enforce all laws, formulate and enforce all rules and regulations governing the conservation and management of fishery resources, except in municipal waters and to settle conflicts of resource use and allocation in consultation with the NFARMC, LGUs and local FARMCs; Develop value-added fishery products for domestic consumption and export; and Assist the LGUs in developing their technical capability in the development, management, regulation conservation and protection of the fishery resources. Formulate rules and regulations for the conservation and management of straddling fish stocks and highly migratory fish stocks. Management, operations, and development of regional commercial fish port complexes located throughout the Philippines; Establishment of ice plants and cold storages, municipal fish ports, warehouses, factory buildings & other structures; Conduct of training on Hazard Analysis Critical Control Points and Good Manufacturing Practices and on the operation and management of municipal fish port; and Monitoring, compilation, and dissemination of fishery statistics and information necessary in the conduct of business activities and policy formulation. Prepare a program for the selection, production and certification of improved planting

Philippine Fisheries Development Authority

Bureau of Plant

Agricultural crops,

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GOP Agency Industry

Product(s) Covered seed and plant materials quality, GMOs

Mandate, Powers & Functions materials as well as guidelines for its implementation;
Recommend plant quarantine policies and prescribe rules and regulations for the

Cotton

Cotton and cotton

prevention, control and eradication of pests, diseases and injuries to plants and plant products; Recommend plans, programs, policies, rules and regulations to the Secretary and provide technical assistance in the implementation of the same; Prevent the introduction of exotic pests in the country and prevent further spread of plant pests already existing from infested to pest-free areas; Enforce phytosanitary measures for the export of plants, plant products and regulated articles; Supervise and control the existing filed inspections and control services and seed testing laboratories; Supervision, coordination, and monitoring of production, purification and maintenance of breeder and foundation seeds of all recommended cultivars; Accreditation of seed growers and plant nursery operators; Conduct crop protection using the regional crop protection centers; Establish pesticide laboratories all over the country; Monitor levels of pesticide residue in crops to protect local and international consumers from possible health hazards; Check on possible indiscriminate use and application of pesticides on food crops and other agricultural products; Determine pesticides degradation rates for different crops to be able to establish "waiting times" and prepare recommendations to improve/change agricultural practices; Determine and evaluate practices on the use of pesticides for possible modification resulting in acceptable low residues in agricultural products; Perform technical analyses on formulated pesticide products; Monitor the level of chemical residues of agricultural crops and by-products and recommend policies for safety of consumers; and Promote use of organic fertilizer and integrated pest management. Promulgate and enforce rules and regulations to govern cotton production, distribution

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GOP Agency Development Administration

Product(s) Covered products

Mandate, Powers & Functions and use of certified cottonseeds, pest control, and other quarantine measures.
Produce breeder, foundation and registered seeds and supervise certified seed

Fertilizer and Pesticide Authority

Fertilizer and pesticides, organic or inorganic

Fiber Industry Development Authority

Fiber crops and fiber products

National Tobacco Administration Philippine Coconut Authority

Tobacco products Coconut, coconut products

production by private cottonseed growers and set and enforce standards and procedures for seed production and marketing. Promulgate and enforce rules and regulations for the registration and licensing of fertilizer and pesticide handlers and products. Establish and implement regulations governing import and export of fertilizer and fertilizer inputs and pesticides, as well as domestic production and marketing, including efficacy and quality, and environmental impact, product safety and agrioccupational health. Establish and enforce tolerance levels and good agricultural practices for use of pesticides Restrict or ban use of pesticides, as needed. Prevent importation of agricultural commodities containing pesticide residues above the accepted tolerance levels. Monitoring of pesticide residues in selected crops. Promote the integrated development of the fiber industry in all its aspects from research, production, processing, marketing and trade regulation; Enforce fiber standards and regulatory measures in order to maintain good quality fiber traded in both local and foreign markets; Improve farm productivity, thereby, increasing farmers' income; and, Regulate and control grading and baling establishments. Promulgate rules and regulations on the production, standardization, classification, grading and trading of tobacco products Establish and enforce standards for domestic trade and export of copra and its byproducts.

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GOP Agency National Food Authority

Product(s) Covered Rice and corn

Mandate, Powers & Functions

Register and license grain handlers (including machinery) and manufacturers of

Food Development Center, NFA, DA

All food products

Sugar Regulatory Administration

Sugar and sugar by-products

Bureau of Postharvest Research and Extension

All agricultural crops

goods where grains are used as ingredients and collect corresponding fees as authorized; and License import/export of grains. Testing and standards development; Product development; Training; Pilot processing; and Quality and safety assessment. Provides an agro-industrial research service laboratory to all sectors of the sugar industry; Analyzes sugar, molasses, juice and bagasse for quality control purposes; and Analyzes all agro-based related materials to the sugar industry. Prevention and control of mycotoxin, and pests and diseases toward food preservation and safety by: Conducting studies on postharvest pests and diseases; Management of pests; Cataloguing of microbial cultures isolated; Operation and maintenance of mycotoxin laboratory; Screening, evaluation and formulation of natural plant products for the control of postharvest pests; Laboratory trial of ultrasonic cleaning of chemical residues and microbial contaminants on vegetables; Bioecological studies: Behavioral Study and Establishment of Rearing Techniques for Insects of Economic Importance; Bioecological Control of Banana Crown Rot with Epiphytic Fungi; and Postharvest Diseases Management Strategies and Storage Life Extension.

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GOP Agency

Product(s) Covered Processed food

Mandate, Powers & Functions DEPARTMENT OF HEALTH

Bureau of Food & Drugs, DOH

Establish standards and quality measures for processed foods; Inspection and licensing of establishments in accordance with Good Manufacturing

National Nutrition Council

All food products

Practices of regulated establishments such as manufacturers, packers/repackers, distributor, importers, exporters, wholesalers, outlets, groceries, supermarkets, other commercial outlets; Evaluation and registration of regulated products based on set standards of safety, efficacy, purity and quality of regulated products, processed foods (imported and local), advertised local products and processed food products intended for export; Market monitoring of products for adulterated products, expired and unregistered products; Laboratory analysis of regulated products such as collected samples from routine monitoring, products which are subject of complaints from consumers, products for registration and donated products; Evaluation and monitoring of advertisements and promotions of tri- media such as television, radio and print ads like newspaper and magazine; Policy formulation, drafting of rules and regulations, administrative orders and standards, issuance of bureau circulars/bureau memoranda and guidelines; Public assistance and information such as rendering the following services: product information, health advisories, and consumer assistance for complaints, and client assistance for consultancy, seminars and trainings; Legal functions such as disposition of consumer complaints re: adulterated food, misbranded food products, advertisement and promotional regulations; Administrative functions for human resource development: enhancement of skills and knowledge of personnel through training; and Special functions related to food such as implementation of food fortification program, salt iodization, and milk code. Coordinate national food and nutrition policies and strategies, including nutritional standards.

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GOP Agency

Product(s) Covered

Mandate, Powers & Functions

Bureau of Product Standards

Industrial Technology Development Institute

DEPARTMENT OF TRADE & INDUSTRY Development, promulgations and promotion of Philippine National Standards (PNS); All products not and covered by DA and 2 Development and promulgation of standards, product testing and certification; DOH Accreditation of competence and capability of testing and calibration laboratories; Accreditation of management system certification bodies and private emission testing centers; National registration scheme for quality assessors; International cooperation on standards and conformance; Training programs on ISO 9000/PNS 1000, ISO 14000/PNS 17000, ISO/IEC 17025, product certification and other standardization activities; and Development, implementation and coordination of standardization activities. Standards development. DEPARTMENT OF SCIENCE AND TECHNOLOGY Technology transfer; All food products Tests, analysis, calibration; Training; Technical information; Design and fabrication; and Use of laboratory and pilot plant facilities.

All standards developed by DA have to be submitted to BPS for numbering to be promulgated as Philippine National Standard.

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4.7.14.Chapter III of the Fisheries Code of 1998 provided the reconstitution of Bureau of Fisheries and Aquatic Resources (BFAR) as a line Bureau of the DA with the following functions related to fish quality and standards: (a) provide advisory services and technical assistance on the improvement of quality of fish from the time it is caught (i.e., on board fishing vessel, at landing areas, fish markets, to the processing plants and to the distribution and marketing chain); advise and coordinate with Local Government Units (LGUs) on the maintenance of proper sanitation and hygienic practices in fish markets and fish landing areas; implement an inspection system for import and export of fishery/ aquatic products and fish processing establishments consistent with international standards to ensure product quality and safety; and develop value-added fishery-products for domestic consumption and export.

(b)

(c)

(d)

4.7.15.Furthermore, the Fisheries Code provides for the strengthening of the Fisheries Inspection and Quarantine Service (FIQS) in BFAR for purposes of monitoring and regulating the importation and exportation of fish and fishery/aquatic resources. The FIQS shall have the following functions: (a) conduct fisheries quarantine and quality inspection of all fish and fishery/ aquatic products coming into and going out of the country by air or water transport, to detect the presence of fish pest and diseases and if found to harbor fish pests or diseases shall be confiscated and disposed of in accordance with environmental standards and practices; implement international agreements/commitments on bio-safety and biodiversity as well as prevent the movement or trade of endemic fishery and aquatic resources to ensure that the same are not taken out of the country; quarantine such aquatic animals and other fishery products determined or suspected to be with fishery pests and diseases and prevent the movement or trade from and/or into the country of these products so prohibited or regulated under existing laws, rules and regulations as well as international agreements of which the Philippines is a State Party; examine all fish and fishery products coming into or going out of the country which may be a source or medium of fish pests or diseases and/or regulated by existing fishery regulations and ensure that the quality of fish import and export meet international standards; and document and authorize the movement or trade of fish and fishery products when found free of fish pests or diseases and collect necessary fees prescribed by law and regulations.

(b)

(c)

(d)

(e)

4.7 - 14

Restructuring the Department of Agriculture, Providing Funds Therefore, And Other Purposes or Executive Order (E.O.) 338 of 2001 4.7.16.Executive Order 338 was never implemented. It was an attempt to clarify the roles of the different agencies under the DA, including BFAR as well as the National Fisheries Research and Development Institute (NFRDI). R. A. 7607 - Magna Carta for Small Farmers 4.7.17.This Act recognizing BPI expertise and inherent functions on pesticide residue analysis and pesticide formulation, seed production and certification, research, technology transfer and crop protection made BPI as the sole agency mandated to: (a) monitor the level of chemical residues of agricultural crops and by-products and recommend policies for safety of consumers; and promote use of organic fertilizer and integrated pest management I.B AFMA Goal and Objectives

4.7.18.The goal of AFMA is to modernize the agriculture and fisheries sectors of the country in order to enhance their profitability, and prepare said sectors for the challenges of globalization. The main strategies to accomplish this goal are (a) the provision of an adequate, focused and rational delivery of necessary support services; and (b) the appropriation of funds for the support services and other purposes. Among the critical production and marketing support services recognized by AFMA is Product Standardization and Consumer Safety (PSCS) service. The vision of AFMA is that all sectors involved in the production, processing, distribution and marketing of foods, and non-food agricultural and fisheries products shall adhere to, and implement the use of product standards in order to ensure consumer safety and promote the competitiveness of agriculture and fisheries products. 4.7.19.Chapter 7, Sections 60-64 of the AFMA mandated the Department of Agriculture (DA) to establish the BAFPS to set and implement standards for fresh, primary- and secondary-processed agricultural and fishery products. The powers and functions of BAFPS were detailed as follows:

a. Formulate and enforce standards of quality in the processing,

preservation, packaging, labeling, importation, exportation, distribution, and advertising of agricultural and fisheries products,

b. Conduct research on product standardization, alignment of the local

standards with the international standards; and

c. Conduct regular inspection of processing plants, storage facilities,

abattoirs, as well as public and private markets in order to ensure freshness, safety and quality of products.

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Box 4.7.1. AFMA Chapter 7 Product Standardization & Consumer Safety Section 60. Declaration of Policy It is the policy of the State that all sectors involved in the production, processing, distribution and marketing of foods, and non-food agricultural and fisheries products shall adhere to, and implement the use of product standards in order to ensure consumer safety and promote the competitiveness of agriculture and fisheries products Section 61. Bureau of Agriculture and Fisheries Product Standards The Department, within six (6) months after the approval of this Act, and in consultation with the Department of Trade and Industry and the Bureau of Food and Drugs, shall establish the Bureau of Agriculture and Fisheries Product Standards (BAFPS). Section 62. Coverage The BAFPS shall set and implement standards for fresh, primary- and secondaryprocessed agricultural and fishery products. Section 63. Powers and Functions The BAFPS shall have the following powers and functions: Formulate and enforce standards of quality in the processing, preservation, packaging, labeling, importation, exportation, distribution, and advertising of agricultural and fisheries products; Conduct research on product standardization, alignment of the local standards with the international standards; and Conduct regular inspection of processing plants, storage facilities, abattoirs, as well as public and private markets in order to ensure freshness, safety and quality of products. Section 64. Pool of Experts and Advisers The BAFPS may coordinate, seek the services of, and consult with both private and governmental agencies; research institutes educational establishments and such other individuals and entities with expertise in the field of product standards and consumer safety. Source: Republic Act 8435

I.C

The Implementing Rules, Targets and Current Status

4.7.20.The implementation of AFMA was guided by the Implementing Rules and Regulations (IRR) contained in the DA Administrative Order No. 6 - 1998 and issued on 10 July 1998. The IRR provisions can be classified into two types - - (a) those relating to the establishment, organization and management, and operationalization of BAFPS; and (b) those concerning the powers and functions, and details of activities of BAFPS. The IRR provisions are presented below according to the above classification3. The AFMA IRR and the BAFPS AO 17 provisions, and their status are summarized in Table 4.7.3.
3

Quoted from Department of Agriculture Administrative Order 6, Implementing Rules and Regulations of RA 8435, dated July 10, 1998. 4.7 - 16

4.7.21.

4.7 - 17

Table 4.7.3 AFMA IRR (DA AO 6, S 1998) Stipulation, DA AO No. 17, S 1998 Authorization and DA and BAFPS Activities to Comply with AFMA IRR and AO No. 17 AFMA IRR Section Stipulation DA AO 17, S 1998 Authorization Status as of 31 Dec. 20054

Rule 61.1

BAFPS Establishment, Organization and Management, and Operationalization Sec. DA to establish BAFPS Established BAFPS with the BAFPS was created by DA AO No. 17 on 4 1 on or before 30 July issuance of the DA AO No. 17 December 1998 1998; and issued on 4 December 1998 Ms. Concepcion Lizada was designated 1st Designate BAFPS Designation of BAFPS Director Director Director AO No. 1, Series of 2000 was issued on 28 BAFPS is under the Office of January 2000 amending AO No. 17 the Secretary Appointment of BAFPS Director by the President and 2 or more Assistant Directors on recommendation of DA Secretary; One Assistant Director assigned to concerns on consumer issues; and Incorporation of a Consumer Protection Division in BAFPS Sec. 9 BAFPS Organizational Structure in Annex A included 2 Assistant Director positions, one in-charge of Consumer Protection BAFPS organizational structure also includes a Consumer Affairs Div., with a Consumer Protection Section and a Consumer Education & Advocacy Section Tasks broadly defined in Annex B includes consumer Mr. Gilberto Leyese was appointed OIC Director on 16 July 2001 after resignation of Dr. Lizada and then Director on 19 September 2005 BAFPS sent proposal to Sec. Angara for approval of creation of 67 positions for staffing requirements of BAFPS on 19 October 1999 Sec Lorenzo requested DBM for the creation of 37 plantilla positions on 11 December 2002 DBM approved 17 positions in 2004 but letter was released only on 16 March 2005 No Assistant Director position has been approved, hence none appointed

Rule 61.2

Sources of Information: AFMA (RA 8435), DA AO No.6 Series of 1998, DA AO No.17 Series of 1998, BAFPS Report Submitted to NAFC AFMA Monitoring Unit, BAFPS Annual Report for 2004, Report on Global Competitiveness for Philippine Agribusiness Product Quality System, Report on Strengthening Quality Assurance and Other Regulatory Services for Diversified Farm Income and Market Development Project.

4.7 - 18

AFMA IRR Section Stipulation

DA AO 17, S 1998 Authorization protection and consumer education activities Sec. 8 The BAFPS Task Force provided for in Section 64 of RA 8435, together with representatives of other government agencies and the private sector, shall serve as the BAFPS Advisory Committee

Status as of 31 Dec. 2005 The BAFPS organization as specified in AO No. 17 Series of 1998 included a Consumer Services Div.

Rule 61.3

Considering existing Phil. agriculture and fisheries product standards, and the related functions and powers of various DA and non-DA agencies and offices, BAFPS Task Force (per Section 64) to propose: specific rules and activities of BAFPS; and if necessary and appropriate, the approach/manner and timing of consolidation of the functions and their associated resources currently with other agencies within BAFPS

The Task Force completed its work and stood

down.5

Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006)

4.7 - 19

AFMA IRR Section Stipulation Rule 62.1 BAFPS coverage shall include standards on consumer health and safety standards related to consumer health and safety and efficient trade of raw, fresh, primary and secondary processed agricultural and fisheries products, both food and non-food. Upon BAFPSs recommendation, issuance of DA AO specifying the full listing of the products covered by BAFPS on or before 30 Dec. 1998

DA AO 17, S 1998 Authorization Sec. 3 Formulate and enforce standards of quality of agriculture, livestock and fisheries and aquaculture products in collaboration and coordination with DTI and BPS, DOST, BFAD and DOH, SPUCs, LGUs, and the private sector, including POs and NGOs Enforcement to include formulation and implementation of standards utilized in enforcement of quarantine rules and regulations

Status as of 31 Dec. 2005 Development of Philippine National Standards is in full swing No AO specifying full listing of products covered by BAFPS was issued on or before 30 Dec. 19986 Listing of products covered by BAFPS has been deliberated with BFAD and other agencies. Report on proposed delineation of functions between BAFPS and other DA regulatory agencies submitted to DBM on 9 October 2003 after consultation with DBM, COCAFM and DA-Personnel Services Division Delineation of functions still being discussed with BFAD only7 Report on proposed delineation of functions between BAFPS-DA and BFAD-DOH submitted to DBM on 12 December 2003

BAFPS has decided to focus on food safety

issues and formulation/ harmonization of standards for primary- and secondaryprocessed agricultural and fisheries products.6

Sec. 7.2

The Department, through BAFPS, shall enter into a Memorandum of Agreement with each of the following agencies with similar functions, defining, among others, such aspects of product standards and regulations as product

MOA with other agencies defining aspects of product standards and regulations (e.g., product coverage, areas subject to regulation, and consumer arbitration) was not signed. A general Memorandum was prepared and signed off by BAFPS and the DA in February 2005. However, none of the nominated agencies have committed to the Memorandum.8
4.7 - 20

AFMA IRR Section Stipulation Rule 63.1 Consultation by BAFPS with BAI and BFAR on the delineation of functions in relation to the Animal Welfare Act of 1998 and the Fisheries Code of 1998 Issuance by the Secretary of Agriculture of an AO embodying agreements on the delineation of functions Creation of the BAFPS Task Force on or before 30 July 1998 to formulate the design of the BAFPS

DA AO 17, S 1998 Authorization Sec. 5

Status as of 31 Dec. 2005

On matters related to fisheries BAFPS has not coordinated with BFAR and product standards, BAFPS to PFDA and no discussion on delineation of coordinate with BFAR and functions were also conducted. PFDA as provided in the Required DA AO defining specific relationship Philippine Fisheries Code of of BAFPS with BFAR and PFDA has not been 1998 (RA 8550) issued. DA Secretary shall issue an BAFPS has not formulated standards for fish AO defining the specific and fish products relationship of BAFPS with BFAR and PFDA

Rule 64.2

Sec. 8

The BAFPS Task Force provided for in Section 64 of RA 8435, together with representatives of other government agencies and the private sector, shall serve as the BAFPS Advisory Committee

BAFPS Task Force was created by AO 6, 1998 Series. SO 411 S 2001, creating the Technical Committees of BAFPS was issued on 03 September 2001 SO 96 S 2002 issued on 14 February 2002 created additional Task Forces for International Food Standards.

6 7

BAFPS Accomplishment Report, First Quarter, January March 2004, Code VII-05 BAFPS Accomplishment Report, First Quarter, January March 2004, Code VII-06 Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006)

4.7 - 21

AFMA IRR Section Stipulation Rule 64.3 Preparation of the Terms of Reference, funding and manpower requirements of BAFPS for the DA Secretarys approval not later than 30 September 1998.

DA AO 17, S 1998 Authorization Sec. 4 The specific scope, timetables and mechanisms of implementation of the BAFPS functions shall be formulated in collaboration with the concerned agencies and promulgated through issuance by the Secretary of Agriculture and/or Memoranda of Agreement among the concerned agencies
BAFPS Powers and Functions

Status as of 31 Dec. 2005 No MOA was signed. Documentation approved by the DA Secretary showing BAFPS TOR, funding, and manpower requirements of BAFPS is in the form of AO No. 1 S 2000 issued by Sec. Edgardo Angara on 28 January 2000 amending AO No. 17 S 1998 to revise the functions and organizational structure of BAFPS

4.7 - 22

AFMA IRR Section Stipulation Rule 63.1.1 The powers and functions of BAFPS to include formulation and enforcement of quality standards

DA AO 17, S 1998 Authorization Sec BAFPS has the following 1 powers and functions as defined in the AFMA and the IRR: o formulate and enforce standards of quality in the processing, preservation, packaging, labeling, importation, exportation, distribution, and advertising of agriculture, livestock and fisheries and aquaculture products; o conduct research on product standardization, and alignment of the local standards with the international standards; and o conduct regular inspections of processing plants, storage facilities, abattoirs, as well as public and private markets in order to ensure freshness, safety and quality of products

Status as of 31 Dec. 2005 BAFPS functions were enumerated in the DA AO No. 17, series of 1998 which established BAFPS. However, said AO repeated the IRR provision on the need for an issuance by the DA Secretary and/or a Memo of Agreement detailing the specific scope, timetables and mechanisms of implementation of BAFPS functions. AO No. 1, Series of 2000 was issued on 28 January 2000 amending BAFPS functions and organization structure provided in AO No. 17 series of 1998. (Annex B) Standards completed with PNS Number9: Corn (shelled, grits) Vegetables (broccoli, cauliflower, cabbage, bulb onion) Fruits (saba/cardaba banana, pummelo, mango, pineapple, durian) Virgin coconut oil Coffee beans Pili nuts Table eggs Cutflowers (chrysanthemum-spray type, chrysanthemum-standard, orchid-spray, carnation, anthurium, roses) Organic agriculture specification

Standards for finalization10:

Fruits (mangosteen, papaya, calamansi/calamondin) Vegetables (carrot, tomato) Chilled young coconut water Nata de coco - raw
4.7 - 23

AFMA IRR Section Stipulation Rule 63.1.2 Development and implementation of standards and codes of practice for food safety and efficient trade

DA AO 17, S 1998 Authorization Sec. 6.1 Develop and implement codes of practice and guidelines for food safety, postharvest handling, primary and secondary processing, packaging, labeling, advertising, distribution and marketing of agriculture, livestock and fisheries and aquaculture products Transmit standards promulgated as national standards to BPS of DTI for assignment of PNS number

Status as of 31 Dec. 2005 Guidelines prepared are:12 Code of Hygienic Practice for the Sale of Fresh Agriculture and Fisheries Products in Markets and Authorized Outlets Guidelines for the Certification of Good Agricultural Practices for Fruits and Vegetables Farming

Sec. 6.4

All completed/finalized standards transmitted to BPS for assignment of PNS number.

BAFPS Website; Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006) BAFPS Website; Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006) Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006)
BAFPS Website, May 2006

10 11

12

4.7 - 24

AFMA IRR Section Stipulation Rule 63.1.3 Assistance to government offices and agriculture and fisheries enterprises in establishing the scientific basis for food safety and nutrition standards and codes of practice; and harmonization of these standards with the international standards and codes of practice
Coordination with government offices and agriculture and fishery enterprises on development of early warning system on international developments on food safety and nutrition standards and codes of practice

DA AO 17, S 1998 Authorization Sec. 6.5 Assist government offices and enterprises to establish the scientific basis for food safety and trade standards, and codes of practice and harmonize these with internationally standards and practices

Status as of 31 Dec. 2005 This is done through the Technical Committees organized for the standards formulation.

Rule 63.1.4

Sec. 6.6

Monitor and disseminate developments and trends in international food safety standards and codes of practice, ensure timely assessment of impact on domestic products and determine appropriate courses of action

Monitoring and dissemination of developments and trends in international food safety standards by BAFPS needs to be improved. Prior to the creation of the Philippine National Codex Committee (NCC), BAFPS assisted in the preparation and presented position papers in Codex Committee meetings and other fora. Since the creation of NCC, Sub-committees and task forces under the NCC are now responsible for preparation of country positions on identified Codex issues, and endorse these to the Technical Com., which in turn endorses to the Executive Com.

4.7 - 25

AFMA IRR Section Stipulation

Rule 63.1.5

DA AO 17, S 1998 Authorization Sec. 6.2 Ensure participation of representatives of all concerned parties in the formulation of standards and codes of practice Form multi-sectoral committees to formulate national standards, and subject these standards to periodic review and revision, if necessary In cooperation with the Agribusiness Marketing Assistance Service (AMAS), actively involve industry associations and professional organizations in standards development and implementation Establish and maintain, in collaboration with NIN the database, MIS, M&E, research and other information related to commodity and food safety standards

Status as of 31 Dec. 2005 BAFPS involves other GOs, academic institutions, professional organizations, industry representatives and consumer organizations in drafting standards through the Multi-sectoral Technical Committees and during public consultation.13

Ensuring the participation of all affected parties, government and nongovernment, in standards and codes of practice

Sec. 6.3

Sec. 6.18

Rule 63.1.6

Establishment and Sec. maintenance of 6.10 database, management information system, monitoring and evaluation system, and research on food commodity and food safety and nutrition standards in collaboration with NIN and research institutions.

Development of BAFPS Information System is on-going.14

13 14

BAFPS Accomplishment Report for CY 2004 BAFPS Accomplishment Report, First Quarter (January-March) 2004, Code VII-12

4.7 - 26

AFMA IRR Section Stipulation Rule 63.1.7 Conduct of product testing, surveillance and inspection of food handling, processing and storage facilities, including abattoirs, fish ports and landing areas and markets, for compliance with approved standards and codes of practice, and Establishment and operation of testing centers and research laboratories

DA AO 17, S 1998 Authorization Sec. 6.13 Conduct product testing, surveillance and inspection of food handling, processing and storage facilities, including abattoirs, fish ports and landing areas and markets, for compliance with approved standards and codes of practice, and establish and operate testing centers and research laboratories for this purpose In collaboration with the Bureau of Agricultural Research (BAR) and appropriate research institutions and SPUCs conduct research related to agriculture and fisheries product standards Establish an inspection and certification systems including third party accreditation to ensure the cost-effective and efficient implementation of standards and codes of practice

Status as of 31 Dec. 2005 Inspections are only carried out in markets and abattoirs.15

Sec. 6.11

Research required (which has been limited to date) has been contracted out and was overseen by the Technical Committee established on each standard on size distribution of fruit and vegetables.14 Started in connection with formulation of Guidelines for Organic Produce and the Certification of Good Agricultural Practices.14

Rule 63.1.8

Establishment of an inspection and certification system including third party accreditation and professional certification system for standards professionals

Sec. 6.14

15

Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006) 4.7 - 27

AFMA IRR Section Stipulation Rule 63.1.9 Provision of organization and expertise to ensure effective participation in international deliberations on food safety and trade standards in collaboration with DA Policy Analysis Service

DA AO 17, S 1998 Authorization Sec. 6.7 Provision of organization and expertise to ensure effective participation in international deliberations on food safety and trade standards in collaboration with DA Policy Analysis Service

Status as of 31 Dec. 2005 BAFPS recommended and endorsed participation of Philippine experts from standards-related organizations in international deliberations on standards. Participation in these meetings is limited because of lack of budget. This function was essentially given to NCC. NCC has instituted a process for prioritizing the Codex Meetings important for Philippine issues. NCC has also instituted a process for selection of appropriate delegates to the Codex Com. Meetings. NCC is temporarily housed by NAFC and has no operational budget, much less budget for participation in Codex Meetings. BAFPS serves as the National Codex Contact Point but performance needs to be improved. As the Codex Contact Point BAFPS should the home of the NCC and should act as the secretariat of the NCC. BAFPS is not agreeable to this arrangement. DA Policy Research Service acts as SPS notification point while BAFPS serves as enquiry point on food safety and standards concerns. Regularly done.

Rule 63.1.1 0

BAFPS serve as the Philippines National Enquiry Point for SPS and other food safety and standards concerns

Sec. 6.8

BAFPS serve as the Philippines National Enquiry Point for SPS and other food safety and standards concerns

Sec 6.9

Represent DA in inter-agency bodies involved with standardization and consumer protection

4.7 - 28

AFMA IRR Section Stipulation Rule 63.1.1 1 Determination and implementation of recall of products not fit for human consumption or pose hazards to health of humans, plants and animals.

DA AO 17, S 1998 Authorization Sec. 6.15 In collaboration with appropriate offices and entities, determine and implement the recall from the market of commodities found to be unfit for human consumption or pose a hazard to humans, animal or plant health, and undertake procedures for the destruction or disposal of confiscated commodities

Status as of 31 Dec. 2005 No recalls have ever taken place in the Philippines.16

16

Cecil McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report, Department of Agriculture, (May 2006) 4.7 - 29

AFMA IRR Section Stipulation Rule 63.1.1 2 Levy and collection of fees for services to be managed under a revolving fund proposed by DA to DBM to be created in the 1999 Appropriations Act

DA AO 17, S 1998 Authorization Sec. 6.17 Levy and collect fees for inspection, testing certification and other services. Provided, that the schedule of fees shall be determined in consultation with the Department of Finance, Commission on Audit and the Department of Budget and Management (DBM), and subject to the approval of the Secretary of Agriculture, except in instances where the collection of said fees is provided for under other laws. Provided further, that such fees shall be deposited to the Bureau of Treasury for the DBM, which shall hold the fees in trust for the designated agency to be disposed of in pursuance to the 1999 Appropriations act or form part of the corporate funds of the concerned government corporation

Status as of 31 Dec. 2005 No revolving funds were appropriated for BAFPS

4.7 - 30

AFMA IRR Section Stipulation Rule 64.1 Coordination with both private and government sectors

DA AO 17, S 1998 Authorization Sec. 7.1 In view of the specialized technical and legal expertise needed in product standards development, formulation and implementation, the BAFPS shall coordinate, seek the services of, and consult with both private and government agencies, research institutes, educational establishments and such other individuals and entities with expertise in the field of product standards and consumer safety

Status as of 31 Dec. 2005 This is a regular BAFPS activity as part of the standard formulation process.

4.7 - 31

I.C.1

BAFPS Establishment, Operationalization

Organization

and

Management,

and

4.7.22.On or before July 30, 1998 the Secretary shall issue an AO to establish the BAFPS and designate the BAFPS Director. As the BAFPS is being organized, the Secretary may designate an officer of the Department to serve in a concurrent capacity as BAPFPS Director. (Rule 61.1) Status: On 3 December 1998 DA Acting Secretary William D. Dar issued AO No. 17 - 1998 establishing BAFPS under the Office of the Secretary for the effective implementation and enforcement of agriculture and fisheries product standards. The said AO likewise specified and elaborated BAFPS powers and functions consistent with Section 63 of AFMA and the IRR. It also required BAFPS to coordinate with DA and non-DA agencies with similar functions. The Secretary also designated Ms. Concepcion Lizada as the first BAFPS Director. On 19 October 1999 BAFPS submitted a proposal for 60 staff positions. On 9 October 2001, DA Secretary Leonardo Q. Montemayor committed to Secretary Boncodin of DBM the abolition of 97 vacant positions from the various agencies and bureaus for the creation of 60 new positions for BAFPS. However, the DA Personnel Division found out that most of the positions offered were already filled up. On 11 December 2002 DA Secretary Luis P. Lorenzo wrote to Secretary Boncodin on the abolition of 67 vacant positions for the creation of 37 BAFPS permanent plantilla positions including the availment of one (1) legal expert and one (1) toxicological expert as local consultants. In March 2003, the Presidential Management Staff under the Office of the President wrote a letter to Secretary Boncodin instructing her to approve the regularization of BAFPS positions and its inclusion in the 2005 national budget. It was only in March 18, 2004 that the DA Personnel Division certified that the 67 vacant positions to fund the creation of 37 positions of BAFPS are still vacant. On 14 December 2004, BAFPS complied with the request of DBM to submit the Bureaus activities based on its mandated powers and functions under AFMA. On 19 January 2005, BAFPS was informed by DBM that only 3 out of the 67 positions offered by DA are funded and the rest were not since they have been vacant for a long time. Nevertheless, DBM approved on 16 March 2005 17 positions for designated sections of BAFPS, namely: a) b) c) d) Office of the Director Standards Development Division Laboratory Services Division Technical Services Division.

4.7 - 32

Hiring for the 17 approved positions is in the final stage. However, BAFPS still needs to comply with requirements set by the DBM in the March 2005 approval of the 17 positions, including: a) Submission to DBM of the Program, Activity and Project (PAP) Structure; b) Confirmation of the savings of the Personal Services budget to fund the approved 17 positions; and c) Submission of Reports on Funded Vacant/Vacated Regular Positions and Positions filled. Furthermore, DA needs to submit a proposal to rationalize the product standards activities, facilities, resources and systems within the parameters and timeline of the DA Rationalization Program. DA has yet to meet the above DBM requirements. 4.7.23.The BAFPS shall be headed by a Bureau Director and two or more Assistant Directors appointed by the President upon the recommendation of the Secretary. One of the Assistant Directors shall be concerned with consumer issues and the BAFPS shall incorporate a Consumer Protection Division. (Rule 61.2) Status: The BAFPS is headed by a Bureau Director who was appointed on 19 September 2005 after having been OIC since 16 July 2001. The BAFPS Organizational Structure in Annex A of AO 17, Series 1998 included 2 Assistant Director positions managing the Product Standards and Technical Services and, Industry Compliance and Consumer Protection. Under the Product Standards and Technical Services are the Standards Development and Promotion and Technical Services Division. On the other hand, Industry Compliance and Consumer Protection include the Industry Compliance and Consumer Affairs Division. On 28 January 2000 Secretary Edgardo J. Angara issued AO No. 1 -2000 (Amending Administrative Order No. 17- 1998) amending the organizational structure of BAFPS abolishing the previous designation of two (2) Assistant Directors This was replaced by one (1) Assistant Director under which three (3) divisions were created, namely (1) Standards Development, Harmonization and Promotion Division, (2) Standards Enforcement, Industry Compliance and (3) Technical Services Division and Consumer Affairs and Special Projects Division. However, the latest version of its organizational chart approved by the DBM in its letter of 16 March 2005 approving the staff complement of BAFPS, the final three (3) divisions are Standards Development Division, Laboratory Services Division and Technical Services Division. As of the end of 2005, BAFPS had 11 personnel: one with permanent position (the Director), 4 seconded from FIDA, 4 contractual (including a janitor), one each seconded from BPI and BAI.

4.7 - 33

4.7.24.The organization and design of the BAFPS shall consider the existing Philippine agriculture and fisheries product standards, the related functions and powers of the various agencies and offices of the Department and other agencies of government, including those provided under the Fisheries Code of 1998. On the basis of the review the BAFPS Task Force referred to in Section 64 shall propose the specific rules and activities of the BAFPS, and if necessary and appropriate, propose how and when functions and their associated resources currently with other agencies may be consolidated within the BAFPS. (Rule 61.3) Status: The BAFPS Task Force was organized by Section 8, AO 6 - 1998 (the AFMA IRR) and was involved in the organizational phase of the BAFPS. 4.7.25.The BAFPS TF shall consult with the BFAR and the BAI on the appropriate delineation of their respective functions in consideration of the provisions of the Animal Welfare Act of 1998 and the Fisheries Code of 1998, as well as practical considerations of the logistics, ease of administration, adequacy of budgets and personnel and agency capability. Their agreements shall be embodied in Departmental Amos jointly drafted by for the approval of the Secretary. In collaboration with the appropriate agencies, the BAFPS shall have the following powers and functions. (Rule 63.1) Status: Sec. 6, AO 17 - 1998 reiterated the need for BAFPS to coordinate with BFAR and PFDA. However, the relationship between BAFPS and BFAR and PFDA has never been defined. BFAR insists that the Fisheries Code is their operative law. 4.7.26.In addition to those from government agencies, the pool of experts shall also include experts from the private sector and concerned industry associations, POs and NGOs. (Rule 64.1) Status: Sec. 71, AO 17 - 1998 provided that BAFPS shall coordinate, seek the services of, and consult with both private and government agencies, research institutes, educational establishments and such other individuals and entities with expertise in the field of product standards and consumer safety in view of the highly technical and legal expertise needed in the standards, development and implementation. For standards development/formulation, BAFPS coordinates with private and government agencies through the Technical Committees which has representation from industry stakeholders, Goes, and NGOs, research institutions and academic institutions. BAFPS has yet to tap legal experts. Under the World Bank-assisted Diversified Farm Income and Market Development Project (DFIMP), BAFPS hired on February 13, 2006 Dr. Cecile McMurray as Senior Technical Advisor to advise on strengthening safety and quality assurance systems for market development. In particular, the consultant worked on the institutional and physical strengthening of BAFPS recognizing that the current system of control was not as effective as it should be. Along with the international expert were two local exports, Domingo F. Casaba and Dr. Maxima E. Flakier commissioned to work on Streamlining of

4.7 - 34

Quarantine Services of the Department of Agriculture and Development of Rationalization Plan of the Department of Agriculture Regulatory Laboratory, respectively. 4.7.27.The multi-sectoral BAFPS Task Force is hereby created to formulate the design of the BAFPS. On or before July 30, 1998, the Department Assistant Secretary charged with Regulatory and Consumer Services or another officer as designated by the Secretary shall assume the chair of the BAFPS TF. The BAFPS TF shall enable multi-sectoral consultations and the sharing of resources for the organization and early operationalization of the BAFPS. The Chairperson of the BAFPS TF is hereby authorized to draw resources from the concerned agencies such as, but not limited to: BPI, BAI, LDC, NMIC, BFAR, NFA, NNC, FDC and BAR in order to organize a secretariat for the BAFPS TF and the initial operations of the BAFPS. (Rule 64.2) 4.7.28.The TF shall be appointed from the pool of experts by the Secretary upon the recommendation of the TF Chairperson. The BAFPS TF shall prepare the terms of reference, funding and manpower requirements of the BAFPS for approval by the Secretary not later than September 30, 1998. (Rule 64.3) 4.7.29.Upon approval by the Secretary of the design an initial workplan of the BAFPS, the BAFPS TF shall cease to exist. The pool of experts will, however, continue to provide technical assistance to the Department on matters related to the BAFPS. (Rule 64.4) Status: The TF was activated to prepare the BAFPS terms of reference, funding and manpower requirements and ceased to exist after that. Sec. 8, AO 17 S 1998 appointed the BAFPS TF to serve as BAFPS Advisory Committee together with representatives of other government agencies and the private sector. It was kept busy in the early days of the BAFPS existence. I.C.2 BAFPS Powers and Functions

4.7.30.The coverage of the BAFPS shall include standards related to consumer health and safety and efficient trade of raw, fresh, primary and secondary processed agricultural and fisheries products, both food and non-food. On or before December 30, 1998 the Secretary, upon the recommendation of the BAFPS, shall issue a Department AO specifying the full listing of the products covered by the BAFPS. (Rule 62.1) Status: A matrix on the delineation of functions between BAFPS and other regulatory agencies under DA was submitted to DBM on 9 October 2003 based on the consultation meeting with DBM, COCAFM and DA-Personnel Division. Similarly, a copy of the proposed delineation of functions between BAFPS and BFAD-DOH was submitted to DBM on 12 December 2003. BAFPS had deliberations on the listing of product coverage with BFAD and few DA agencies but still DA has not issued an AO specifying the full listing of the products covered by BAFPS.

4.7 - 35

Box 4.7.2. BAFPS Product Coverage Per DA AO No. 6, 1998 (AFMA IRR)

Fresh agricultural and fishery products refers to agricultural and fisheries products
newly taken or captured directly from its natural state or habitat, or those newly harvested or gathered from agricultural areas or bodies of water used for aquaculture (e.g., fish sold fresh).

Primary processing refers to the physical alteration of raw agricultural or fishery

products with or without the use of mechanical facilities (tuna sold as sushi, dressed chicken).

Secondary processing refers to the physical transformation of semi-processed

agricultural or fishery products (dried fish). Source: Republic Act 8435

4.7.31.In collaboration with the appropriate agencies, the BAFPS shall have the following powers and functions. (Rule 63.1)

30.a. To formulate and enforce standards of quality that will ensure human health
and safety and efficiency in the consumer consumption, marketing and trade of agricultural and fisheries products, both for export and import. Enforcement shall include the formulation and implementation of standards utilized in the enforcement of quarantine relative to products for human consumption. (Rule 63.1.1)

30.b. Develop and implement in association with the Department, and Other
Departments, selected SUCs and LGUs, the codes of practice and guidelines for the food safety and efficient trade standards in postharvest handling, primary and secondary processing, packaging, labeling, advertising, distribution and marketing of agricultural and fisheries products. (Rule 63.1.2) Status: The MOA with other agencies defining aspects of product standards and regulations required under AO 17, S 1998, Section 7.2 has not been signed. Notwithstanding the authorizations granted by AO 17 Series 1998 for standards formulation and enforcement, BAFPS activities were focused on standards formulation, mainly due to lack of resources, both staff and budget. Standards development is in full swing mostly for plant products and mostly voluntary and not mandatory standards.

4.7 - 36

BAFPS has finalized the following standards: Product Anthurium Banana (saba/cardaba) Broccoli Bulb onions Cabbage Calamansi/calamondin Carnation, fresh Carrot Cauliflower Chrysanthemum (live flowering potted plants Chrysanthemum (spray type) Chrysanthemum (standard) Coffee beans (green) Corn, grits Corn, shelled Durian Eggs (table) Lettuce (head) Mango (fresh) Mangosteen Orchid (spray type) Organic Agriculture Papaya Pili nuts Pineapple Pummelo Roses Tomato Virgin coconut oil PNS Number PNS/BAFPS 23:2005 PNS/BAFPS 08:2004 PNS/BAFPS 16:2004 PNS/BAFPS 14:2003 PNS/BAFPS 17:2004 PNS/BAFPS 30:2006 PNS/BAFPS 02:2003 PNS/BAFPS 38:2006 PNS/BAFPS18:2004 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20

PNS/BAFPS 03:2003 ICS 65.020.20 PNS/BAFPS 05:2003 PNS/BAFPS 04:2003 PNS/BAFPS 01:2003 PNS/BAFPS 15:2004 PNS/BAFPS 10:2004 PNS/BAFPS 12:2004 PNS/BAFPS 35:2005 PNS/BAFPS 19:2004 PNS/BAFPS 13:2004 PNS/BAFPS 31:2006 PNS/BAFPS 06:2003 PNS/BAFPS 07:2003 PNS/BAFPS 33:2006 PNS/BAFPS 34:2005 PNS/BAFPS 09:2004 PNS/BAFPS 11:2004 PNS/BAFPS 24:2005 PNS/BAFPS 26:2006 PNS/BAFPS 22:2004 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020 ICS 65.020.20 ICS 67.080.10 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 65.020.20 ICS 67.200.10

Standards for finalization include:

4.7 - 37

Product Bangus, boneless Danggit Nata de coco, raw Organic fertilizer Tilapia, fillet Young coconut water, chilled

PNS Number

PNS/BAFPS 32:2005 ICS 67.080.01

PNS/BAFPS 28:2005 ICS 67.160.20

Standards in different stages of consultation include: Product Coco Coir Meat cuts Milk, fresh Rice PNS Number

PNS/BAFPS 11:2004 ICS 65.020.20

BAFPS also developed the Code of Hygienic Practice for the Sale of Fresh Agriculture and Fisheries Products in Markets and Authorized Outlets and Guidelines for the Certification of Good Agricultural Practices for Fruits and Vegetables Farming.

30.c. Assist government offices and agriculture and fishery enterprises to establish
the scientific basis for domestic food safety and nutrition standards and codes of practice and the alignment of these with internationally accepted standards and practices. (Rule 63.1.3) Status: Local experts from the members of the Technical Working Group of Corn Quality Management from PHTRC, NFA, BPRE, BAI and BFAD were tapped to conduct trainors training on the prevention and control of aflatoxin in 2005.

30.d. Coordinate with government offices and agriculture and fishery enterprises to
develop an early-warning system on developments and trends in international food safety and nutrition standards and codes of practice, to enable adequate domestic adjustment in these. (Rule 63.1.4) Status: BAFPS has no activities related to this function.

4.7 - 38

30.e. Ensure the participation of representatives of all affected parties, both

government and non-government in the formulation of agricultural and fishery product standards and codes of practice for commodity and food safety and efficient trade. (Rule 63.1.5) Status: BAFPS established Technical Committees and Task Forces with participation from both government and non-government sectors in the formulation of standards and codes of practice (including international standards. Special Orders 411, S 2001 and 96 Series 2002 were issued for the purpose.

30.f.

Establish and maintain, in collaboration with the NIN and the appropriate research institutions and SUCs, the database, Management Information System (MIS) and M&E, and research on commodity and food safety and nutrition standards. (Rule 63.1.6) Status: Collaboration with NIN on establishing and maintaining database is on-going.

30.g. Rule 63.1.7

Conduct product testing, surveillance and inspection of food handling, processing and storage facilities, including abattoirs, fish ports and landing areas and markets, for compliance with approved standards and codes of practice, and establish and operate testing centers and research laboratories for this purpose. (Rule 63.1.7) Status: BAFPS conducts inspection only of markets and abattoirs.

30.h. Rule 63.1.8

Establish an inspection and certification system including third party accreditation and a professional Certification System for commodity standards professional to ensure cost-effective implementation of standards and codes of practices. (Rule 63.1.8) Status: BAFPS conducts first party certification scheme for Good Agricultural Practices (GAP) and third party accreditation for organic agriculture.

30.i.

In collaboration with the Department PAS, provide organization and manpower expertise to ensure effective preparations and background for government participation in the deliberations on international food standards, including those related to the WTO, SPS), FAO, WHO, Codex Alimentarius Commission (CAC), the Office Internationale des Epizootics, the International Plant Protection Convention (IPPC) and other international bodies formulating international food safety and efficient trade standards, and, subject to the direction of the Secretary, be responsible for government participation in the deliberations of the above international bodies. (Rule 63.1.9)

Box 4.7.3. Philippine National Codex Committee

4.7 - 39

The Codex National Committee was established under the Joint Department Administrative Order No. 1, S 2005 (DA) or No. 2005-0028 (DOH) signed between the Department of Agriculture and Department of Health on 25 th November 2005. This JDAO was established pursuant to the Codex Asian Regional Guidelines which provides that each member-country must establish an NCC primarily to advise governments on the implications of various standardization and food control issues which have arisen and are related to the work undertaken by the CAC and to support the work of the Codex Contact Point. The NCC is composed of (1) Executive Committee, (2) Technical Committee, and (3) Sub-Committees and Task Forces. The NCC is composed of government agencies, non-government organizations, and the industry sector with an interest in the nature and content of Codex texts. It includes food control agencies, scientific and technical institutions, trade bodies, consumers, farmer organizations, and food manufacturers. The BAFPS shall be the National Secretariat of the NCC. In the initial operation, the National Agricultural and Fishery Council (NAFC) Fisheries and Aquaculture Section (FAS) shall act as interim Secretariat in coordination with BAFPS. The objectives of the NCC are: To provide a mechanism for integrating Codex decisions and activities into the programs of food control agencies, and those of other government and nongovernment organizations with responsibility to ensure the safety of foods; To ensure that Codex food standards, guidelines, codes of practice and other recommended measures reflect national interests and local capabilities and do not hinder food trade; To serve as a venue for government agencies, non-government organizations, and industry associations, to work together in the development of country positions on pertinent Codex issues, and in the evaluation and dissemination of Codex texts; and To institutionalize the establishment of technical expertise for cost-efficient and effective country participation in Codex meetings. The expected outputs of the NCC are: Identified priority Codex issues and country positions on these issues; Scientific database in support of country positions; A mechanism for facilitating the integration of relevant Codex decisions into the national food standards and food safety control programs; An integrated work plan and budget for the generation of scientific data, preparation of country positions, and for effective participation in Codex activities; A National Codex Information System (NCIS); Selection of appropriate technical expert/s in the country delegation to Codex meetings. Source: Joint Department Administrative Order No. DA-01 and DOH 2005-0028, S 2005

Status:

BAFPS role in providing organization and manpower expertise to ensure effective participation in Codex Alimentarius Commission meetings is minimal. This function is performed by the newly organized Philippine National Codex Committee (NCC) which is temporarily housed in NAFC and exists with a small budget support from NAFC, BAFPS, DA agencies and DOH agencies. The critical NCC activities - - government and private sector collaboration in the development of country positions on pertinent Codex
4.7 - 40

issues, and in the evaluation and dissemination of Codex texts; establishment of technical expertise for cost-efficient and effective country participation in Codex meetings; and participation in Codex Committee meetings - - are not funded. BAFPS should be host and Secretariat of the NCC, but it is not.

30.j.

Serve as the Philippines National Enquiry Point for SPS and other food safety and standards concerns. (Rule 63.1.10) Status: BAFPS performs this function but needs to improve especially with respect to the timely transmission/submission to CAC of the Philippine position on standards issues as well as dissemination of information on meetings as well as standards.

30.k. Determine and implement, in collaboration with the appropriate offices and
entities, the recall from the market of commodities that are determined to be unfit for human consumption. Provided, that confiscated commodities are to be destroyed. (Rule 63.1.11) Status: No recalls have been implemented

30.l.

Levy and collect fees for its inspection, testing and certification services. Provided further, that such fees shall be managed under a BAFPS revolving fund, proposed by the Department to the DBM to be created in the 1999 Appropriations Act. (Rule 63.1.12) Status: No revolving fund was created in the 1999 Appropriations Act.

II. FINDINGS AND ANALYSIS

4.7 - 41

II.A

AFMA PSCS and the Philippine Agriculture and Fishery Safety and Quality System

4.7.32.The Philippine agriculture and fisheries safety and quality system is characterized by numerous government units that have overlapping and uncoordinated standards formulation and enforcement functions. (Table 4.7.4) There are gaps despite the overlaps. The system is generally inefficient and reactive. It appears to prioritize food export issues. And based on the recent cases of foodborne illnesses and deaths, the system is not working. For example, the fisheries sector was forced to be serious in certification of fish manufacturing plants, especially the HACCP approach when the United States Food and Drug Administration imposed this requirement of all facilities for its products to be allowed entry into the United States. More recently, the European Union issues, also on fishery products, forced the BFAR undertake serious system overhaul (i.e., organizational and procedural adjustments), albeit unsuccessfully, mainly to comply with the import requirements and be recognized as a Philippine competent authority. However, there are well-known accomplishments of the DA in the areas of control of foot and mouth disease and the prevention of the Avian Influenza Virus infection, the control of mango pulp weevil infestation, the regulation of the use of chlorpyrifos in mangoes, among others. The DA should be commended for its role in making the Philippines the only significant poultry producer that has not been affected by the pandemic. 4.7.33.The government has not appropriated funds for PSCS. The AFMP for 20002004 did not contain such a budget line item. The only funding AFMA got were the salaries of the Director and personnel detailed from other DA agencies. BAFPS was fortunate to have been granted funding support by the DA commodity program. Budget has not been made available for even the basic requirements of hiring qualified personnel; procurement of adequate facilities and their operation, including laboratories and equipment; research, training and information collection and dissemination activities; and participation in international fora on food safety. 4.7.34.AFMA was an attempt to integrate the agriculture and fisheries safety and quality control system into one organization. Government was determined to achieve effective collaboration and coordination among agencies across the entire food or supply chain through the establishment of BAFPS. AFMA is indeed headed in the right direction. However, DA needs to make significant progress in food safety and quality and consumer protection. The fragmented food supply chain and large numbers of small producers involved in food chain increases the risk of food exposure to unhygienic environments, contamination and adulteration. The continuing poor posharvest handling, processing and storage of food by the small businesses caused by lack of appropriate facilities and knowledge and expertise in technology application pose problems.

4.7 - 42

Table 4.7.4 DEPARTMENT OF AGRICULTURE AGENCIES AND THEIR RESPONSIBILITIES1

AGENCY FOCUS REG LIC INSP Reg. LAB Res. LAB ACC CERT

Bureau of Agriculture and Fisheries Product Standards Bureau of Animal Industry

BAFPS

Raw, primary- and secondaryprocessed agriculture and fisheries products Quarantine - Live animals (and milk) includes Veterinary Service, Vaccines, Aflatoxin in animal feeds Meat2 and meat products Focuses on Sugar and Sugar products Quarantine live fish and their primary products canned tuna and frozen products Quarantine fresh agricultural crops and seeds testing and certification pesticide residues (MRLs) Licensing of premises and products formulation of MRLs Fiber crops but excluding cotton

BAI

National Meat Inspection Service Sugar Regulatory Administration Bureau of Fisheries and Aquatic Resources Bureau of Plant Industry

NMIS SRA BFAR

  

  

  

     ?

BPI

Fertilizer and Pesticide Authority Fiber Industry Development Authority

1

FPA FIDA

 

 

  

Adapted from Cecil H. McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report. Diversified Farm Income and Market Development Project. DA/World Bank. Feb. 2006. BFAD-DOH has related responsibilities.

4.7 - 43

AGENCY

FOCUS

REG

LIC

INSP

Reg. LAB

Res. LAB

ACC

CERT

Cotton Development Authority Philippine Coconut Authority National Food Authority Food Development Center, NFA National Tobacco Authority Bureau of Post harvest Research and Extension Food Development Center NFA Industrial Technology Development Institute DOST

CODA PCA NFA FDCNFA NTA BPRE FDC NFA ITDI DOST

Cotton and cotton fiber Coconut and coconut products Markets and Marketing (Rice and Corn) All food products Tobacco growing dried leaves All products, especially rice and corn All food products Processed food products

  

  

    

    

   

     

Legend: REG-Regulatory powers; LIC-Licensing powers; INSP- Inspects; Reg LAB- Laboratory carrying out regulatory functions; Res LABLaboratory for carrying out Research: ACC-Powers for Accreditation; LIC- Licensing power; CERT- certifies.

4.7 - 44

II.B.

AFMA PSCS and Its Implementation

4.7.35.The enactment of AFMA with its promise of substantial funding in addition to the DA regular budget, and the creation of BAFPS did not help improve the agrifisheries safety and quality system or provide adequate support for its efficient operation. The creation of BAFPS also fostered a divide especially among the DA standards and regulatory agencies. It was perceived as a threat to the other agencies especially because the specific product coverage and functions with regard to standards formulation and enforcement or regulation were not provided. In fact the IRR even made it more tenuous when it elaborated on the functions that were clearly within the purview of the other agencies. AFMAs prescription was like superimposing BAFPS in the existing agriculture and fisheries quality and safety system in the DA and in other agencies. 4.7.36.It is lamentable that strongest resistance to BAFPS was shown by the DA agencies. Instead of collaborating, cooperating and accepting BAFPS with a possible unique supportive role, the agencies did not accept the delineation of functions. Most agencies use the existing powers and authorities given by the laws and orders which created their agencies. It is amazing how the tug of war persists to this day even though BAFPS is directly under the Office of the Secretary. 4.7.37.To make matters worse, BAFPS was never appropriated a budget since 1998. BAFPS was added to the list of government agencies involved in food quality and safety that could not be and have not been effective primarily because of lack of budget despite AFMAs commitment for increased funding for the agriculture sector and the DAs operations. Within the 7 years of the life of AFMA, BAFPS was never really operationalized. Until recently, BAFPS was severely handicapped with a small office space with limited office furniture, and 7 staff. Its operations practically depended on funding from the DA rice, corn, high value, and livestock programs. The failure of BAFPS to obtain approval of the staffing and budget for both personnel and operations is the principal reason for the very much delayed operationalization of BAFPS, and failure to fulfill all its functions. 4.7.38.Even with the approval of the 17 positions and the recruitment completed, the fate of BAFPS largely depends on the outcome of the studies on the rationalization of the DA. The interim measure suggested by DBM is for BAFPS to be lodged in the Office of the Secretary, specifically under the Office of the Undersecretary for Staff Operations, as part of the General Administration and Support Services since it has not been included in the AFMA. In the meantime, BAFPS activities will remain limited until the DA complies with the requirements by the DBM. 4.7.39.The current responsibilities or mandate of BAFPS are not realistic and not achievable. The mechanism for the implementation of BAFPS mandate is unworkable. An analysis of the current authorization or mandate and configuration conducted by Dr. McMurray showed that they are not achievable and not appropriate17. Dr. Mc Murray pointed out that BAFPS should not be an implementing
17

Cecil H. McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report. Diversified Farm Income and Market

4.7 - 45

agency, but a policy setting body with oversight function and the power to scrutinize that the policies/standards are being implemented satisfactorily throughout the Philippines. Policy should be separate from implementation in accordance with the requirements of current international best practice. BAFPS should not be responsible to perform a policy function (i.e., formulation of standards) and an implementation function (i.e., enforcement of standards) at the same time. II.C Stakeholders Views on AFMA PSCS

4.7.40.As part of the review, the team held workshops and conducted a survey of key informants in 16 regions of the country to elicit comments on the AFMA benefits to the different agricultural based industries and feedback regarding the priorities of the law II.C.1 Regional Workshops

4.7.41.The regional workshop participants were divided into relevant commodity groupings. Each group was asked to assess the general impact, implementation and budget of the PSCS, giving the reasons for the rating; identify the major issues and concerns; and propose budget allocation for the component. The workshop outputs reflect the general lack of awareness and understanding of product quality and safety control. The participants are also generally unaware of the AFMA PSCS component and BAFPS and its powers and functions. Those who are aware of BAFPS questioned the capability of BAFPS given its delayed operationalization and lack of personnel. Nevertheless participants expressed satisfaction with well-known and recent activities of BAFPS and other related agencies (BPI and BFAR) such as, efforts on detection and control of aflatoxin and other mycotoxins, red tide monitoring, HACCP training in the fisheries sector and BAFPS standard setting activities and consultations. General Impact of Product Standardization and Consumer Safety 4.7.42.Table 4.7.5 shows that the AFMA PSCS had generally moderate impact across commodity groups. Abaca and Coconut. Region 4B is the rater for these commodities. Participants from this region agree that the AFMA PSCS Component had high impact on coconut industry (particularly virgin coconut oil, copra and coir), but only moderate impact on abaca industry. Coconut producers and processors are aware and conscious about product safety. There was also increased demand by consumers for high quality coconut products, e.g., virgin coconut oil. This may be an effect of the series of seminars and consultations conducted by BAFPS and PCA in connection with the formulation of VCO standards. Unlike the coconut industry, the abaca industry was only moderately affected by the PSCS. Standards are used only in the exporters
Development Project. DA/World Bank. Feb. 2006.

4.7 - 46

grading and baling facilities and not by the producers at the harvest and postharvest points of the supply chain.

Table 4.7.5 Stakeholders Assessment of AFMA Product Standardization and Consumer Safety General Impact
COMMODITY GROUP Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM Most Frequent Response Corn None Low Moderate Moderate Moderate Low Moderate Low Low Moderate Rice Low High Low Moderate None Moderate Low Moderate None Moderate Grains Fisheries Abaca Coconut (VCO, Coir, Copra) HVCC None Moderate Low Low High Low Moderate Low High Moderate Low None Moderate Livestock & Poultry None Low Moderate Moderate None Moderate Low Low None Moderate None Low Moderate Low Moderate Moderate

None Moderate

Low Low/ Moderate

Moderate High Moderate High (Aquaculture) Moderate Low Moderate Moderate Low Low Moderate Moderate Moderate Moderate Moderate Low Low Low Moderate None Low Low Moderate Moderate

High

Low

Note: Blank cell means either no discussion group for the commodity group was formed or no response. None means no impact.

Corn. Five out of 11 regions (Regions 3, 4A, 4B, 6, and 9) represented in the workshop are convinced that the AFMA PSCS had a moderate impact on the corn industry. The main reason for this rating is the conduct of a series of consultations and training of farmers, livestock raisers, Agricultural Technicians and other LGU agriculture personnel on prevention, detection and control of aflatoxin and other mycotoxins contamination. The five regions appreciated the consultations and demands for more of such training to cover more LGU personnel and more areas. On the other hand, respondents were concerned about the failure to operationalize BAFPS, the capability of BAFPS personnel to perform their functions, and the lack of field services by BAFPS since it has no field office. Participants from said 5 regions also want BAFPS to fast track the preparation of standards for corn and corn products. Regions 1 and ARMM participants agree that PSCS had no impact since the PSCS was not implemented in Region 1, while ARMM participants said the production program in that area focused on rice and not corn.

4.7 - 47

Grains. More than half of the regions represented (CAR, Region 12 and CARAGA) rated the PSCS implementation impact on the grains sector low. CAR participants did not feel AFMA PSCS. They gave importance to harmonizing the Philippine standards with international standards and the enforcement of these standards. They resent the fact that traders dictate quality standards. Region 12 participants did not believe that farmers got any benefits from the PSCS implementation. Farmers still have no awareness of standards, and are, therefore, not adopting them. For CARAGA Region participants, lack of awareness of standards, lack of testing facilities and equipment (especially moisture tester, and lack of posharvest facilities are the reasons why they believe the PSCS did not make a difference in the grains industry. Region 10 and Region 11 participants agreed that farmers are not aware of standards and those who know do not apply the standards. Although NFA applies standards on moisture content and purity, it cannot influence producers to adopt standards except when they sell to NFA. The fact is farmers do not always sell to NFA. Some participants complained that NFA is too strict when evaluating the quality of the farmers grains offered to it. Rice. Participants from Regions 4A, 5, 7 and 9 were convinced that the AFMA PSCS had moderate impact on the rice sector. Some farmers said they are not aware of standards. Those who know the standards are not strictly following them. Even improved milled rice sold does not meet the 97% purity requirement. Improper spraying can be a possible health hazard. An equal number of regions (1, 3, 6 and ARMM) agreed on the low impact of the PSCS. Participants find NFAs enforcement of standards lax, while producers know little about standards, and therefore do not implement them. Region 6 participants are happy with the implementation of Integrated Pest Management (IPM) and organic rice production. However, they raised the issue of the lack of information dissemination on organic farming, and the absence of an organic farming certifying body at the local level. Fisheries and Aquaculture. The majority of regions gave AFMA PSCS a moderate impact rating for a variety of reasons. For Region I, municipal ordinance on fisheries exist but are not strictly implemented. Consumer information dissemination is not implemented well. Region 2 participants pointed out the public misinformation on the quality and safety of fishery products, unsanitary processing of some products (e.g., corroded bagoong containers, and filthy fish boiling vats in the processing of smoked fish), lack of control on the use of food colors and other additives, and the failure of LGUs to implement product standards and food control due to lack of capability are manifestations that the PSCS is not making a good impact. Region 4A pointed out a lot of good things but still rated the PSCS impact moderate. These are: standards are in place; GMP and HACCP are used for quality assurance; and assistance on accreditation is provided. On the other hand, Region 5 participants believe that PSCS deserves the moderate impact rating because of: lack of awareness on product standards and consumer safety, absence of monitoring and surveillance due to lack of personnel, and

4.7 - 48

politically influenced implementation of PSCS18 are some of the reasons for Region 5s rating. Region 8s reasons for the moderate rating are: selective implementation of standards, absence of fish inspection prior to sale (spoiled, and fish caught using cyanide continue to be sold), lack of qualified personnel to do inspection in the municipality, and use by buyers of standards other than BFARs. Region 9 is contented with the availability of standards, quality control services and training. The good red tide monitoring is the only positive feedback for Region 10.19 Region 10 has a number of issues, namely: limited implementation of food control, lack of equipment and qualified personnel for cyanide and formalin tests, lack of inspectors, absence of quality control in hatcheries, LGUs failed to implement food control measures, lack of political will to enforce standards, and lack of standards for processed fishery products. Lack of government fish inspection is the only reason for the moderate rating given by CARAGA Region. High Value Commercial Crops. Five regions agreed that PSCS has a low impact on HVCC. Region 2 has limited awareness of standards. The activities implemented in the Region were not identifiable with AFMA PSCS. Region 3 participants believe that BAFPS has not really been operationalized mainly because it had no staff. In Region 4, they were not aware of the existence of BAFPS and agriculture and fisheries products standards. BAFPS was considered an infant agency by Region 5. The standards formulated are limited and the compliance with available standards is low. The public has limited awareness of the standards and consumer safety issues. Livestock and Poultry. Of the 15 regions which gave ratings, six gave moderate impact rating. Region 3 indicated that the inadequate budget and untimely release prevented the formulation of standards for processed meat. Region 4A is concerned that standards and regulations are not enforced, and standards are not harmonized with international standards. As far as Region 5 is concerned, implementation of PSCS activities should be improved, particularly the determination of aflatoxin in feeds and biologic residues. In Region 9, improvements are needed in the packaging and labeling of meat and meat products. Region 12 adopts standards and there are regular training on standards, and regular inspection is conducted for accreditation. In ARMM, NMIS rules and regulations are strictly enforced, e.g., standards for Halal slaughtering. However, there are concerns about the prevalence of backyard slaughtering, improper labeling of products, and improper handling of live animals transport to markets.

Budget Allocation for Product Standardization and Consumer Safety

18 19

No clarification is available in the transcripts of the workshop reports. Note that BAFPS is not involved in red tide monitoring.

4.7 - 49

4.7.43.Almost all the regions agreed that PSCS had inadequate budget allocation (Table 4.7.6). A few regions believed that it was more appropriate to give a none (meaning no budget) response considering that there was really no AFMA budget allocated if budget incremental to the DA regular budget was considered. The participants feel that the PSCS budget was not enough for fundamental activities that would make a difference to the agriculture and fisheries sector as envisioned by AFMA. Funding was needed for the implementation and expansion of start-up activities, such as: standards formulation for many products; information dissemination and promotion of standards adoption; monitoring and enforcement; consultation and training on quality and safety assurance measures (e.g., detection and control of aflatoxin, GMP, HACCP) for producers, processors, LGU Agriculture Staff, and consumers; set-up or upgrade of facilities and equipment for laboratory testing and make these services accessible; laboratory maintenance and operating expenses; and BAFPS and LGU personnel and personnel capability building. Table 4.7.6 Stakeholders Assessment of AFMA Product Standardization and Consumer Safety Budget Allocation
COMMODITY GROUP Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM Most Frequent Response Corn None None Inadequate Inadequate Inadequate Adequate Inadequate Inadequate Inadequate Inadequate Inadequate Rice Inadequate Inadequate Inadequate Inadequate Adequate Inadequate Inadequate Inadequate None Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Grains Fisheries Inadequate Inadequate Adequate Inadequate Inadequate Inadequate Inadequate None Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Abaca Coconut (VCO, Coir, Copra) HVCC Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Adequate None Inadequate Livestock & Poultry None Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate None Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate

Inadequate

Inadequate

Inadequate

Inadequate Inadequate Inadequate Inadequate Inadequate Inadequate

Note: Blank cell means no discussion group for the commodity group was formed or no response. None means workshop participants believe no budget was allocated.

Implementation of Product Standardization and Consumer Safety

4.7 - 50

4.7.44.Five of the eight commodity groupings across all regions agree that the PSCS implementation was poor (Table 4.7.7). The reasons for this rating are practically the same as the reasons of the budget rating. Participants in the workshops made special mention the consultations and training for the detection and control of aflatoxin (especially in corn) that were started in 2005 by the Corn Program. For fisheries and aquaculture sector, red tide monitoring is quite well known and appreciated. Table 4.7.7 Stakeholders Assessment of AFMA Product Standardization and Consumer Safety Implementation
COMMODITY GROUP Coconut Fisheries Abaca (VCO, Coir, Copra) Fair Fair Fair Good Fair Poor Fair Good Fair Poor Poor Poor Good Poor

Region

Corn

Rice

Grains

HVCC

Livestock & Poultry

1 Poor Poor Poor None CAR Poor Fair 2 Poor Good Poor Poor 3 Fair Poor Poor Fair 4A Fair Poor Poor Fair 4B Fair Fair Poor 5 Poor Fair Poor Fair 6 Poor Poor Good Poor 7 Poor Fair Poor Poor 8 Poor None Fair None 9 Fair Good Fair 10 Poor Poor Poor 11 Fair Poor/Good Poor 12 Poor Poor Poor Fair CARAGA Poor Fair Fair ARMM Poor Poor None Fair Most Frequent Poor Poor Poor Poor Fair Good Poor Fair Response Note: Blank cell means no discussion group for the commodity group was formed or no response. None means the participants were not aware of any implementation that took place.

Priority Focus for Intervention and Proposed Budget Allocation 4.7.45.The priorities for intervention spans the AFMA mandated functions of BAFPS, including: fast track standards formulation for agriculture and fisheries products, both fresh and processed; enforcement of standards and regulations; standards promotion among producers, marketers and processors; information and training for producers, marketers and processors; consumer education; and provision of accessible laboratory testing facilities (Table 4.7.8). However, there is also a call for the review of BAFPS mandate; the operationalization of BAFPS, including its presence in the local level; and the activation of the LGUs role in the inspection system. 4.7.46.The overall average budget allocation proposal for PSCS is 5.57%, besting only Information Support, Trade and Other Services Components. Of the seven

4.7 - 51

commodity groups, livestock, fisheries, and HVCC have the highest PSCS intervention requirement, proposing the highest budget allocation ranging from 7 7.6%. This is probably because of the export/import orientation of these commodities. Table 4.7.8 Stakeholders' Assessment of AFMA Product Standardization and Consumer Safety: Priority Focus for Intervention and Proposed Budget Allocation
PROPOSED BUDGET ALLOCATION (% of AFMA Budget)

PRIORITY FOCUS FOR INTERVENTION Corn (11 Regions)

BAFPS needs to finalize quality standard for corn & consumer safety Set policy to allow DA to revolve the proceeds from aflatoxin examination/analysis for the procurement of reagents and other laboratory supplies
Grains (5 Regions)

3.7%

None
Rice (11 Regions)

3.0% 2.8%
Fisheries (16 Regions)

None Formulation of standards for products. HACCP training of producers and processors. Information campaign on consumer safety among producers and consumers. Strict enforcement of product standards. Provision of laboratories in strategic places. Training of stakeholders on product quality and safety. Ensure quality fishery products in preparation for export trading and ensure consumer safety. Competent manpower from BFAR. Finish standards proposed by the National Seaweeds Development Program (NSDP). Set-up BAFPS in the region.

7.2%

4.7 - 52

Table 4.7.8. Contd

HVCC (14 Regions)

Information dissemination and enforcement of standards. Laboratory facilities. Full operationalization of BAFPS. Upgrading of needed laboratory facilities for accredited methods of analysis (High Performance Liquid Chromatography, Atomic Absorption Chromatography, and Gas Chromatography. LGUs to regularly monitor fertilizer and pesticide residues for fruits and vegetables following meat inspection system. Strict enforcement of the food labeling laws.
Livestock & Poultry (15 Regions)

7.0%

Impose sanctions to violators (users and vendors) for dispensing biologics. Strictly implement/enforce existing policies and product standards. Review BAFPS mandate. Strengthen; provide budget and facilities from national and local governments. Craft comprehensive program on product standardization. Intensify information dissemination through tri-media. Strict enforcement of product standards for meat and meat products by LGU. Budget allocation for product standards. Upgrade and utilize existing lab facilities for antibiotic and chemical residues. Define standards. Provide complete facilities and equipment.
Abaca (Region IVB)

7.6%

None.
Coconut: VCO, Coir, Copra (Region IVB)

5.0% 5.0%

None.

II.C.2 Survey of Producers Groups 4.7.47.Producers groups were selected from among the AFMA regional workshop participants. They were requested to fill-out the questionnaire on the respondents awareness of the PSCS component, BAFPS and its mandate. A total of 181 respondents representing 16 regions participated in the survey. (Tables 4.7.9A4.7.9E and Tables 4.7.10A-4.7.10C) 4.7.48.In all regions of the country, less than a third of the respondents are satisfied with the AFMA PSCS (Table 4.7.9A). More than half of the respondents from Regions 11 and 12 were satisfied with the PSCS. In contrast, CARAGA and ARMM had the least satisfied respondents. Those who are not satisfied make up less than a fourth of the respondents. Very few were very satisfied and represented only three regions (2, 9, and ARMM). Less than half of the respondents did not know or could not answer probably because they were unaware of this AFMA component.

4.7 - 53

Table 4.7.9A Survey of Producers Associations: Satisfaction with Current Product Standards, Quality and Safety.
Not Satisfied Satisfied Very Satisfied Don't Know No Answ er Total % % % % % # of Responses 1 27 36 36 11 CAR 57 43 7 2 12 18 6 41 24 17 3 25 25 25 25 8 4A 30 40 30 10 4B 14 29 57 7 5 13 40 47 15 6 39 33 28 18 7 33 17 50 6 8 22 11 67 9 9 43 14 43 7 10 37 37 5 21 19 11 11 56 22 11 9 12 11 56 22 11 9 CARAGA 25 6 69 16 ARMM 8 8 15 31 38 13 All Regions 23 30 2 12 33 181 Region

Note: Totals may not add-up due to rounding off.

Table 4.7.9B Survey of Producers Associations: Awareness of existence of BAFPS

Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM All Regions Yes % 43 6 13 30 71 27 28 33 33 43 32 22 22 31 8 25 No % 91 43 59 75 50 47 61 17 22 29 47 67 67 44 62 51 Don't Know No Answ er Total % % # of Responses 9 11 14 7 29 6 17 13 8 10 10 10 29 7 7 20 15 11 18 50 6 11 33 9 29 7 21 19 11 9 11 9 25 16 31 13 13 10 181

4.7 - 54

Note: Totals may not add-up due to rounding off.

4.7.49.More than half of the respondents do not know that BAFPS exist, while a fourth were aware (Table 4.7.9B). Awareness of BAFPS was highest among Region 4B respondents. On the other hand, three quarters of the Region 3 respondents were unaware of BAFPS. 4.7.50.Of those who knew about BAFPS existence, only a little more than half were aware of is functions and target accomplishments (Table 4.7.9B). More than two thirds of the respondents do not know the functions and the target accomplishments of BAFPS (Table 4.7.9C). 4.7.51.Less than on tenth of the respondents know of standards that have been formulated by BAFPS or other government agencies (Table 4.7.9C). Close to two thirds have no awareness of the Philippine standards. Table 4.7.9C Survey of Producers Associations: Awareness of BAFPS functions and target accomplishments
Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM All Regions Yes % 9 29 13 30 14 27 6 33 14 16 11 22 19 8 14 No % 82 43 71 75 40 57 53 78 67 56 86 68 78 67 63 62 66 Don't Know No Answ er Total % % # of Responses 9 11 29 7 24 6 17 13 8 10 20 10 29 7 20 15 17 18 6 11 33 9 7 16 19 11 9 11 9 19 16 31 13 12 8 181

Note: Totals may not add-up due to rounding off.

4.7.52.The respondents are even less aware of the standards that are being enforced by BAFPS or other government agencies (Tables 4.7.9D and 4.7.9E). Less than one tenth of the respondents are aware of the standards enforced, while more than two thirds are not aware.

4.7 - 55

Table 4.7.9D Survey of Producers Associations: Awareness of the Standards that have been Formulated by BAFPS and other Government Agencies
Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM All Regions Yes % 14 13 10 14 13 11 17 29 5 11 11 6 8 No % 82 71 71 75 50 57 60 78 83 56 57 74 67 67 13 62 63 Don't Know No Answer Total % % # of Responses 18 11 14 7 24 6 17 13 8 40 10 29 7 27 15 11 18 6 11 33 9 14 7 21 19 22 9 22 9 81 16 38 13 20 8 181

Note: Totals may not add-up due to rounding off.

Table 4.7.9E Survey of Producers Associations: Awareness of the Standards that are being Enforced by BAFPS or other Government Agencies

4.7 - 56

Region 1 CAR 2 3 4A 4B 5 6 7 8 9 10 11 12 CARAGA ARMM All Regions

Yes % 14

No % 73 57 65 88 50 57 60 72 100 56 43 68 78 78 69 62 67

10 29 20 17

11 11

Don't Know No Answer Total % % # of Responses 27 11 29 7 29 6 17 13 8 10 30 10 14 7 20 15 11 18 6 11 33 9 57 7 32 19 11 9 11 9 31 16 38 13 18 8 181

Note: Totals may not add-up due to rounding off.

4.7.53.The lack of awareness was evident in the responses when asked to enumerate standards they know, the agencies that have formulated standards and agencies that enforce standards (Tables 4.7.10A 4.7.10C)). For example, some respondents appear to be confused with some of the buzz words they hear (e.g., GMP, HACCP, and ISO), identifying them as standards. Table 4.7.10A Survey of Producers' Associations: Awareness of Specific Product Standards that have been Formulated by BAFPS and Other Government Agencies
Region CAR Specific Product Standards Size standards for flowers Corn Rice Banana Meat packaging Grains Hybrid seeds Livestock products Inbred seeds GMP HACCP Pili nut standards CODEX Identification of aflatoxin in fuels Chlorpyrifos maximum residue level accepted in Japan and USA Cypermethrin maximum residue level accepted in Japan and USA

Region 2 Region 3 Region 5 Region 6

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Region Region 7 Region 9

Region 10

Region 11 Region 12

Specific Product Standards Poultry Corn Rice HACCP CODEX ISO GMP Pesticide residues Abaca Size and quality standards Vegetables Insecticide residue Mangoes Soil-less growing Tuna Banana Pineapple Coconut Rice Rice Mango Banana Pineapple Coconut Banana Rubber Vegetable Egg

Table 4.7.10B Survey of Producers' Associations: Awareness of Specific Government Agencies that have Formulated Standards Region Region 5 Region 6 Region 9 Government Agencies that Have Formulated Standards BAFPS DOST FIDA BFAD Philippine Quarantine Service DTI BPS

Table 4.7.10C Survey of Producers' Associations Awareness of Specific Government Agencies that are Enforcing Standards Region Region 5 Government Agencies Enforcing Standards BAI BFAR BPI

II.D

Important Issues and Global Developments in Food Safety, Quality, Control and Consumer Protection

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Food Safety, Quality and Consumer Protection20, 21 4.7.54.Food safety may defined as all conditions and measures necessary during the production, processing, storage, distribution and preparation of food to ensure that when eaten, it does not present an appreciable health risk. Food safety implies absence or acceptable levels of contaminants, adulterants, naturally occurring toxins or any other substance that may make food injurious to health on an acute or chronic basis. Food quality can be considered a complex characteristic of food that determines its value or acceptability to consumers. Food quality is about all positive or negative attributes that influence the value the consumer gives on the product. This includes positive attributes such as the origin, color, flavor, texture, nutritional content and processing method of the food; and negative attributes, such as spoilage, contamination with filth, discoloration, and off-odors.

Box 4.7.4 Considerations of Food Safety Food safety is an essential public health issue for all countries. Foodborne diseases due to microbial pathogens, biotoxins, and chemical contaminants in food represent serious threats to the health of thousands of millions of people. The integration and consolidation of food industries and the globalization of the food trade are changing the patterns of food production and distribution. Food and feed are distributed over far greater distances than before, creating the conditions necessary for widespread outbreaks foodborne illness. Increasing urbanization leads to greater requirements for transport, storage and preparation of food. In developing countries, food is often prepared by street vendors. In developed countries, up to 50% of the food budget may be spent on food prepared outside the home. All these changes lead to situations in which a single source of contamination can have widespread, even global consequences. Globalization of the food trade offers many benefits to consumers, as it results in a wider variety of high quality foods that are accessible, affordable and safe, meeting consumer demand. The global food trade provides opportunities for food-exporting countries to earn foreign exchange, which is indispensable for the economic development of many countries. However, these changes also present new challenges to safe food production and distribution and have been shown to have widespread repercussions on health. Food safety programs are increasingly focusing on farm-to-table approach as an effective means of reducing foodborne hazards. This holistic approach to the control of food-related risks involves consideration of every step in the chain, from raw material to food consumption. Hazards can enter the food chain on the
20

Adapted from: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome .2003 Committee on World Food Security, 25th Session Report, May-June 1999).

21

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farm and can continue to be introduced or exacerbated at any point in the chain. Although significant progress has been made in many countries in making food safer, thousands of millions of people become ill each year from eating contaminated food. The emergence of increased antimicrobial resistance in bacteria causing disease is aggravating this picture. The public is increasingly aware of the risks posed by pathogenic microorganisms and chemical substances in the food supply. The introduction of new technologies, including genetic engineering and irradiation, in this climate of concern about food safety is posing a special challenge. Some new technologies will increase agricultural production and make food safer, but their usefulness and safety must be demonstrated if they are to be accepted by consumers. Until recently, most systems for regulating food safety were based on legal definitions of unsafe food, enforcement programs for the removal of unsafe food from the market and sanctions for the responsible parties after the fact. These traditional systems cannot respond to existing and emerging challenges to food safety because they do not provide or stimulate a preventive approach. During the past decade there was a transition to risk analysis based on better scientific knowledge of foodborne illness and its causes. This provides a preventive basis for regulatory measures for food safety at both national and international levels. The risk-based approach must be backed by information on the most appropriate and effective means to control foodborne hazards. Source: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome .2003

4.7.55.Food control is defined as: . . . . a mandatory regulatory activity or enforcement by national and local authorities to provide consumer protection and ensure that all foods during production, handling, storage, processing and distribution are safe, wholesome and fit for human consumption; conform to safety and quality requirements; and are honestly and accurately labeled as prescribed by law. 4.7.56.The Philippines has commitments under international trade agreements. The World Trade Organization (WTO) and ASEAN Free Trade agreements cover trade liberalization as well as supplemental and complementary issues such as, the application of Sanitary and Phytosanitary (SPS) Measures and equivalence; harmonization of standards; reciprocal recognition of tests and certification of products; and introduction of greater transparency in standards and conformance. 4.7.57.The FAO/WHO Guidelines states that most country food safety and quality systems typically have the following components:

a. Food related laws, regulations and standards Laws traditionally consist

of legal definitions of unsafe food, and the prescription of enforcement tools for removing unsafe food from commerce and punishing responsible parties. Food laws and regulations must be relevant and enforceable. An inadequate food law will have a negative impact on the effectiveness of food control activities. Updated standards are also important.

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Box 4.7.5 Food Legislation Food legislation should: Provide a high level of health protection; Include clear definitions to increase consistency and legal security; Be based on high quality, transparent, and independent scientific advice following risk assessment, risk management and risk communication; Include provision for the use of precaution and the adoption of provisional measures where an unacceptable level of risk to health has been identified and where full risk assessment could not be performed; Include provision of for the right of consumers to have access to accurate and sufficient information; Provide for tracing of food products and for their recall in case of problems; Include clear provisions indicating that primary responsibility for food safety and quality rests with producers and processors; Include obligation to ensure that only safe and fairly presented food is placed on the market; Recognize the countrys international obligations particularly in relation to trade; and Ensure transparency in the development of food law and access to information. Source: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome. 2003

b. Food related control management This pertains to the establishment of a

leadership function and administrative structures for: (a) development and implementation of an integrated national food control strategy; (b) operation of a national food control program; (c) securing funds and allocating resources; (d) setting standards and regulations; (e) participation in international food control related activities; (f) developing emergency response procedures; and carrying out risk analysis.

c. Inspection Services Qualified, trained, efficient and host food inspection

service is essential to the administration and implementation of food laws. The reputation and integrity of the food control system is only as good as the integrity and skill of the inspectors.

Box 4.7.6. Responsibilities of the Inspection Service Inspecting premises and processes for compliance with hygienic and other requirements of standards and regulations; sampling food during harvest, processing, storage, transport or sale to establish compliance, to contribute data for risk assessments and to identify offenders; recognizing forms of food decomposition by organoleptic assessment; identifying food which is unfit for human consumption; or food which is otherwise deceptively sold to consumers; and taking the necessary remedial action;

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 recognizing, collecting and transmitting evidence when breaches of law occur, and appearing in court to assist prosecution; encouraging voluntary compliance by means of quality assurance procedures; carrying out inspection, sampling and certification of food for import/export inspection purposes when so required; in establishments working under safety assurance programs such as Hazard Analysis Critical Control Point (HACCP), conduct risk based audits. Source: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome. 2003.

d. Laboratory services for physical, microbiological and chemical analyses

with qualified and skilled analysts to ensure effective and efficient performance. Due to the high capital investment and maintenance and operating cost, the number and location of the laboratories must be determined in relation to the objectives of the system and the volume of work. A central reference laboratory equipped for sophisticated and reference analysis would help in effective coverage of analyses needed.

e. Information, Education, Communication and Training Delivery of

information, education and advice to stakeholders across the supply chain. The activities are provision o f balanced factual information to consumers; provision of information packages and educational programs for key officials and workers in the food industry; development of train-the-trainer programs; and provision of reference literature to extension workers in the agriculture and health sectors.

Box 4.7.7. Components of Risk Analysis Risk assessment a scientifically based process consisting of the following steps: (1) hazard identification; (2) hazard characterization; (3) exposure assessment; and (4) risk characterization. Risk management the process of weighing policy alternatives, in consultation with all interested parties, considering risk assessment and other factors relevant for the health protection of consumers and for the promotion of fair trade practices, and if needed selecting appropriate prevention and control options. Risk communication the interactive exchange of information and opinions throughout the risk analysis process concerning hazards and risks, risk related factors and risk perceptions, among risk assessors, risk managers, consumers, industry, the academic community and other interested parties, including the

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explanation of risk assessment findings and the basis of risk management decisions. Source: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome. 2003.

4.7.58.In strengthening national food control systems FAO recommends that country authorities take into consideration basic principles and values that strengthen food control activities, including:

a. Maximizing risk reduction by applying the principle of prevention as fully as

possible throughout the production, processing and marketing chain; preference is for a preventive approach that controls processes by applying good practices such as good agricultural practices (GAP), good manufacturing practices, and good hygienic practices (GHP);

b. Addressing the farm-to-table continuum (or the supply chain); this calls for
an integrated approach which emphasizes the vital role of the producer, processor, transporter, vendor and consumer in ensuring food quality and safety;

c. Establishing emergency procedures for dealing with particular hazards

(e.g., recall of products);

d. Developing science-based food control strategies; e. Establishing priorities based on risk analysis and efficacy in risk
management;

f. Establishing holistic, integrated initiative which target risks and impact on

economic well-being; and

g. Recognizing that food control is a widely shared responsibility that

requires positive interaction among all stakeholders. 4.7.59.According to the FAO/WHO, there are at least three types of organizational arrangements for a national food control system. These are: a) Multiple Agency System multiple agencies are responsible for food control b) Single Agency System a single, unified agency for food control c) Integrated System a national integrated approach. 4.7.60.The Philippine system is basically a multi agency system which leads to problems like duplication of regulatory activities, increased bureaucracy,

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fragmentation and lack of coordination or even conflict between bodies involved in policy, monitoring and control of product safety. FAO/WHO suggests that in revising food control system, governments consider the Integrated System to achieve effective collaboration and coordination between agencies. The typical organization of such a system consists of four operational levels:

1.Level 1 Formulation of policy, risk assessment and management, and

development of standards and regulations. 2.Level 2 Coordination of food control activity, monitoring, and auditing. 3.Inspection and Enforcement. Single Agency System a single, unified agency for food control. 4.Integrated System Education and training. 4.7.61.FAO/WHO recommends that governments consider a model, which calls for the establishment of an autonomous national agency for activities at Levels 1 and 2, with existing multi-sectoral agencies retaining responsibility for Levels 3 and 4 activities. The role of the competent autonomous national agency is to establish national food control goals, and undertake strategic and operational activities necessary to achieve those goals. Other functions of such an agency at the national level may include:

Revising and updating the national food control strategy as needed; Advising relevant ministerial officials on policy matters, including
determination of priorities and use of resources;

Drafting regulations, standards and codes of practice and promoting their

implementation;

Coordinating the activity of the various inspection agencies and monitoring

performance;

Developing consumer education and community outreach initiatives and

promoting their implementation;

Supporting research and development; and Establishing quality assurance schemes for industry and supporting their
implementation. RECOMMENDATIONS Amendment of the AFMA 4.7.62.AFMA Chapter 7, Product Standardization and Consumer Safety, should be amended to strengthen the agriculture and fisheries product control, promote uniform application of consumer protection measures, more timely action to protect consumers and more cost efficient and effective use of resources and expertise. The AFMA IRR and related AOs will have to be amended as well accordingly.

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4.7.63.The amendments proposed are:

a. Establish the Agriculture and Fisheries Safety Authority (AFSA); b. Modify the organization, powers and functions of BAFPS, and the
regulatory agencies, i.e., BPI, BAI, NMIS, BFAR, FIDA, CODA, PCA, SRA, NTA, NFA and FPA.

c. Establish the Laboratory Service (LS) and a National Reference

Laboratory (NRL).

d. Allocate budget for institutional and physical strengthening of the

agriculture and fisheries quality and safety control system; including multiyear funding for infrastructure and facilities development and research; and

e. Authorize collection of fees for services and retention of agency collections

for specific and agreed upon uses.

Agriculture and Fisheries Safety Authority22 4.7.64.The first proposed amendment to Chapter 7, Product Standardization and Consumer Safety, of AFMA is to provide for the establishment of the Agriculture and Fisheries Safety Authority (AFSA) . AFSA shall integrate the agriculture and fisheries safety and quality system to achieve effective collaboration and coordination among the different agencies of DA as well as DOH. 4.7.65.The following roles, organizational components and activities are based on a typical food control agency described in the FA/WHO Guidelines for Strengthening National Food Control Systems.

a) AFSA Mission
AFSA mission shall be to protect the health and safety of consumers, promote trade, and prevent fraudulent practices by ensuring that agriculture and fisheries products traded meet the highest standards of safety and quality provided by law.

b) AFSA Role and Activities

AFSA shall be an autonomous body accountable to the DA as DA has responsibility for the significant part of the agriculture and fisheries supply chain or the farm-to-table continuum. DA will agree with DOH

22

The Authority is proposed to cover Fisheries since the sector is still under the Department of Agriculture.

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on the delineation of powers and functions to minimize overlaps and promote efficiency. AFSA shall formulate agri-fisheries product control policy and provide advise to all concerned Departments on all matters concerning agrifisheries products control; AFSA shall formulate the budget for the agri-fisheries product safety and quality control system and shall be accountable to the DA; AFSA shall coordinate the implementation of agri-fisheries control measures; AFSA shall be responsible for the identification of legislative needs; monitoring the efficiency and effectiveness of law enforcement and food surveillance activities; commissioning research, etc.; AFSA shall coordinate, monitor and audit national agency, local agency and local government units agri-fisheries products control activities, including food analysis, inspection, enforcement and education; AFSA shall oversee the management of a Central Laboratory Service AFSA shall use reserve enforcement powers in effect in the event that enforcement bodies default or are negligent in their duties.

c) AFSA Management Board

AFSA shall be governed by a Management Board (MB) with a Chairperson and Directors. The number, conditions of appointment or engagement, tenure of the members of the MB will be specified by the AFMA amendment. Representatives from the DA, DOH, DTI, DILG, and DOF may be appointed to the MAB. Other members of the MAB should have experience or expertise in one or more of the following fields: Public health and epidemiology Food science and technology Agriculture and fisheries production Agricultural science and animal health Agricultural marketing and trade Human nutrition Food laws Public administration Consumer rights and affairs

The MB shall have the following responsibilities: (1) Formulate broad policy and resource framework for AFSA activities within the law;

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(2) Provide advise to all concerned Departments on matters relating to the AFSA mandate; (3) Provide overall coordination; (4) Set-up the scientific or technical committee that will assist and advise the Board in matters of scientific nature, providing scientific inputs in agriculture and fisheries safety and quality control decisions-making processes, including: scientific and technical questions relating to food safety and hygiene, and risk assessment; food standards and codes of practice; research; nutritional value and content of food and labeling; implementation and administration of inspection services; and monitoring and evaluation including regulatory impact assessment. (5) Set-up the Consultative Committee that will facilitate broad consultation with producer, industry, trade and consumer groups, and provide views and advice to MB on food safety and quality and regulation. (6) Appoint the Chief Executive Officer (CEO) of the AFSA. The MB shall decide the extent of the delegation of its authority to the CEO. (7) Oversee AFSA and scrutinize its performance to ensure it is transparent, fair and efficient. The MB shall be accountable for all the actions and operations of the AFSA.

d) AFSA Organizational Structure

A possible organizational structure for AFSA is shown in Figure 4.7.1. The proposed structure reflects the principal functions or key areas of responsibility, namely: (i) Analysis and Surveillance/Research; (ii) Standards; Inspection; and (iii) Support Services/Communication. AFSA could perform the Standards and Inspection functions through contracts with BAFPS and the Inspection agencies of the DA (e.g., BPI, BAI, NMIS, etc.) provided the powers and functions of these agencies are modified as discussed in the following sections.

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Figure 4.7.1 Sample Philippine Agriculture and Fisheries Safety Authority Organizational Chart
OVERSIGHT BY SECRETARY OF AGRICULTURE MANAGEMENT BOARD AGRI-FISHERIES SAFETY AUTHORITY

TECHNICAL COMMITTEES

CONSULTATIVE COMMITTEE

CHIEF EXECUTIVE OFFICER

Analysis & Surveillance

Standards

Inspection

Technical Assistance, Training & Communication

Source: Assuring Food Safety and Quality: Guidelines for Strengthening National Food Control Systems. FAO/WHO. Rome. 2003

4.7.66.The AFSA mission, roles and functions and organizational structure discussed above should serve as general guide in the formulation of its detailed organization, terms of reference and operational plans at an appropriate time with the assistance of technical experts.

III.A.2 BAFPS, Other DA Agencies and Other Agencies 4.7.67.This second proposed amendment concerns the function and organization of BAFPS. BAFPS should be made the sole standards formulation agency of government in the agriculture and fisheries sector. BAFPS should formulate new standards, and review and update existing standards to harmonize them with international standards. The coverage of BAFPS function should include: (a) product standards for fresh and secondary processed products, both food and non-food; (b) guidelines and codes of practices; and (c) standards of hygiene. It should prioritize mandatory standards over voluntary standards in its work program. It will set priorities for research needs related to standards formulation. Standards formulation should be carried out in close coordination with BFAD-DOH. For processed products, BAFPS will have to agree on the specific product coverage with BFAD-DOH. The current practice of BFAD-DOH covering only tertiary processed products (e.g.,

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canned or bottled products) could already be specifically provided in the agreement. Likewise, BPS-DTI role in assignment of number for standards to be adopted as national standards should be recognized and followed. On the other hand, roles of the DA enforcement agencies should be differentiated from those of the Bureau of Customs, to avoid recurrence of cases of some Customs personnel usurping the power of the enforcement agencies by reversing the DA enforcement agencies decisions. Manuals of procedures should be updated and disseminated for everybodys guidance and compliance. 4.7.68.BAFPS should continue to act as Codex Contact Point (CCP) to facilitate continuous contact and information exchange with the Codex Commission. Like all its other functions, BAFPS needs capability upgrading and operational budget support to perform this function. 4.7.69.Ideally, the CCP should also be Host and Secretariat of the NCC. At the current state of BAFPS organizational development when it is still striving to perform its critical function of standards formulation with limited funding and personnel still gaining experience and training, it makes perfect sense to temporarily assign the responsibility for the NCC to another relevant DA unit or agency. NAFC seems to be an appropriate home for the NCC with NAFCs mandate per DA Administrative Order No. 6, Series of 1998 to assist the DA in the monitoring and coordination of the agriculture and fisheries modernization process; and serve as the integrative and consultative structure for inter-agency and inter-sectoral collaboration in agriculture and fishery modernization.23 4.7.70.DA through BAFPS or NAFC should provide budget support for the implementation of the NCC activities that are essential to the attainment of expected outputs, namely: identification of priority Codex issues and country positions on these issues; scientific database in support of country positions; a mechanism for facilitating the integration of relevant Codex decisions into the national food standards and food safety control programs; an integrated work plan and budget for the generation of scientific data, preparation of country positions, and for effective participation in Codex activities; and a National Codex Information System (NCIS); and selection of appropriate technical expert/s in the country delegation to Codex meetings. 4.7.71.BAFPS should also be the SPS Enquiry and Notification Point (this function currently with the DA Policy Analysis Service). In addition, BAFPS (instead of the Department of Foreign Affairs) should be the channel of communication for information on the European Unions Rapid Alert System for Food and Feed (RASFF), a system for providing control authorities with an effective tool for the exchange of information regarding measures taken to ensure food safety. BAFPS should promote the use of and implementation of standards. Research in connection with product standards setting should be contracted to research institutions through the BAR competitive research grants as well as through BAFPS funding. BAR should be required to clear with BAFPS all such research proposals.
23

http://nafc.da.gov.ph/mandates.php accessed on 3 May 2007.

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4.7.72.DA agencies which currently perform standards development function should be stripped of this power. All DA regulation and enforcement functions that are currently under BPI, BAI, NMIS, BFAR, FPA, NFA, PCA, SRA, NTA, and CODA should be consolidated under an Inspection and Regulation Service (IRS). The function would include product quality and safety, and plant and animal health inspection and regulation. The role of the LGUs in enforcement should be clarified to avoid confusion that leads to conflict as well as gaps. The study findings and recommendations of Dr. Bonifacio Cayabyab24 are important inputs to the establishment of the IRS. The specific recommendations are on: (a) mechanisms for centralizing/decentralizing and sharing and integration of quarantine service; (b) sustaining the quality and quantity of service; (c) application of commercial principles and retention of income to BAI, BPI, BFAR and BAFPS; and (e) upgrading of facilities, system, and manpower components. BAFPS role in relation to the enforcement agencies is that of auditing the implementation of standards and enforcement of food control standards and regulations. 4.7.73.Market development and market promotion activities fall under the purview of and should be turned over by the regulatory agencies to AMAS. For most regulatory agencies, product research and development could be performed by government research or academic institutions. These activities are usually funded with resources from commodity programs or BAR anyway. They also compete for resources within the agency. Laboratory Service 4.7.74.The third proposed amendment is the establishment of a Laboratory Service at the same organizational level as BAFPS and the Inspection and Regulatory Service. This amendment takes the changes in laboratory services proposed by DA Consultants Dr. McMurray25 and Dr. Flavier26 a step further. The LS will be the new management structure for all laboratories (more aptly referred to as service laboratories) and a National Reference Laboratory (NRL) that is yet to be established. The organization and configuration of the service must be determined and carefully decided considering the objectives of the agriculture and fishery control system and the volume of work for optimum coverage. The planning should address the critical issues of: (a) existing laboratories being under funded, under equipped, under utilized, and not to international standards; (b) lack of qualified laboratory technical personnel and existing personnel under trained; (c) duplication of laboratory analysis; and (d) lack of oversight of regional laboratories.

24

25

Consultant on Streamlining of Quarantine Services under the Diversified Farm Income and Market Development Project. Cecil H. McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report. Diversified Farm Income and Market Development Project. DA/World Bank. Feb. 2006. Maxima E. Flavier, Ph.D. Development of Rationalization Plan of the Department of Agriculture Regulatory Laboratories. Draft Report, Department of Agriculture/World Bank. Quezon City (May 2006)

26

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Box 4.7.8. Functions of National Reference Laboratories Acquire and/or develop testing methods to International Standards. If methods are acquired from outside the country, there is a need for them to be validated for use on the materials and specimens to be analysed in the Philippines. Provide the direct linkage with other International Reference laboratories. Obtain the necessary International reference materials needed by BAFPS to ensure cross compatibility with analytical procedures as practiced internationally (Note: International Reference materials can also be used for Proficiency testing and BAFPS should only release for method validation once the material has been used for proficiency testing) Disseminate and train staff in the associated laboratories as appropriate in the fully validated methods. Establish a Quality Control system not only for their own use but also for affiliated laboratories. Provide a central resource for data analysis either from its own Laboratory information system or from data acquired at Regional level. The laboratory would run a statistical and an Information Technology service to all laboratories within its purview. Provide for and implement of statistically designed surveillance and monitoring surveys to determine the level of contaminants and the occurrence/incidence/prevalence of animal diseases etc. Provide a court of last resort in cases of dispute between analytical laboratories or between laboratories and their clients. Provide a confirmatory analysis service to outlying laboratories Provide advice to the Department of Agriculture and Ministers as required. Should not provide direct analytical support to the industry. The Centre should provide support to other laboratories when they need help. For instance, the Centre should provide confirmatory analysis and provide technical support and advice when required. It is not the function of the Centre to undermine the development of commercial laboratories or other laboratories in the Public Sector. In any case the Reference Centre will have oversight over the performance of other laboratories and therefore cannot be placed in a position where it can abuse its authority. The method of operation requires that the Reference laboratory is funded by the state in order to maintain its impartiality.

Source: Cecil H. McMurray. Institutional and Physical Strengthening of the Bureau of Agriculture and Fisheries Product Standards. Technical Report. Diversified Farm Income and Market Development Project. DA/World Bank. Feb. 2006.

4.7.75.The LS shall be tasked with the establishment of the NRL, including crucial infrastructure needed for effective and efficient laboratory services coverage that conform to international standards and the worlds best practice. The CRL shall be furnished with superior and advanced equipment for sophisticated and advanced analyses for a brad range of food safety issues, and reference analyses. The CRL

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shall also perform or oversee the development and validation of national methods. Dr. McMurray provides details of the functions of the NRL. 4.7.76.The AFSA functions related to the LS would be: (a) oversight of laboratory management plans; (b) review of budgets and approve capital expenditures and maintenance and operating costs, including infrastructure developments; (c) consider issues of duplication and deployment; (d) review and comment on training programs; (e) advice DA on all matters concerning laboratories; and (f) employ experts to address particular issues. BAFPS shall conduct audits and performance assessment of laboratories to provide assurance that laboratories are performing analytical functions that conform to international standards; hence the food control standards are properly implemented and enforced. Funding Under the Extended AFMA 4.7.77.Strengthening the Philippine agriculture and fisheries quality assurance and control system needs serious and priority attention for reasons already enunciated in AFMA, i.e., consumer safety, trade facilitation and competitiveness. To conform to the worlds best practices, this calls for institutional and physical strengthening of the entire system, from risk analysis, standards setting, regulation and enforcement, information and training, laboratory facilities and equipment, regional and international standards and safety networking, and participation in regional and international meetings, particularly those of FAO/Codex Alimentarius Commission and International Standards Organization. 4.7.78.For the fourth amendment, the extended AFMA funding should make specific provisions for multi-year funding for infrastructure, facilities and equipment; research for standards setting; and research related to food safety issues. 4.7.79.To address the eternal funding constraints, some services could be shifted to a user fee system, which simply means user pays for services, for example, inspection for certification/accreditation/permits, and laboratory services. The Fifth Amendment should provide for the authorization for all concerned agencies to retain all fees collected by the agency and to be used to sustain operation instead of being turned over to the Bureau of Treasury. Review of Current Donor-Funded DA Projects and Other AFMA-Related Laws 4.7.80.The review and amendment of AFMA presents an opportunity for the comprehensive review of the Philippine agriculture and fishery safety system especially if the policy makers choose to adopt an integrated system to minimize duplication and eliminate the gaps and enhance efficiency as recommended in this report. This will include review of related laws including, the Fisheries Code of 1998, Standardization Law of the Philippines of 1964, Food, Drugs and Devices, and Cosmetics Act of 1963, as amended by Executive Order 175, Series of 1987, Local

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Government Code of 1991, Consumer Welfare Act of 1998, and Executive Order 338 of 2001. 4.7.81.DA and COCAFM should revisit the on-going projects and review the relevance and consistency of the current efforts under those projects with the Agriculture and Fishery Control objectives under the proposed AFMA amendment. Those projects are DFIMP, the European Union Trade Related Technical Assistance, Economic Modernization through Efficient Reforms and Governance Enhancement, and Institutional Grant for Policy Development. DA should ensure that the projects are aligned with the objective of strengthening of the agriculture and fishery control system to protect the Filipino consumer as well as consumers of the Philippine export products equally and promotes the competitiveness of Philippine products in the domestic as well as foreign markets.

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