Commodity flow or domestic trade refers to the flow of commodities through the water, air and rail transport systems in the country. Data on the inflow and outflow of commodities in the different regions of the country are used to construct interregional and inter-industry relation tables. These serve as bases in the formulation and implementation of various regional development programs like countryside development and port planning.

Quantity and value of domestic trade increases

In the first quarter of 2006, the total quantity of domestic trade transactions increased by 35.3 percent, resulting to 5.88 million tons from 4.35 million tons reported during the same period of last year. Shipment through water was the major mode of transport with shares of 99.8 percent and 99.9 percent in the first quarters of 2005 and 2006, respectively.

Likewise, there was also an increase in the total value of domestic trade by 18.8 percent from PhP82.12 billion in the first quarter of 2005 to PhP97.57 billion in the same period of 2006. The commodities were traded mostly through water comprising 99.5 percent in the first quarter of 2005 and 99.6 percent in the first quarter of 2006.

Food and live animals contributes about one-third of total domestic trade value

The bulk of the value of commodities that flowed throughout the country in the first quarter of 2006 came from food and live animals with value amounting to PhP31.95 billion (32.7%). This was followed by mineral fuels, lubricants and related materials with PhP19.07 billion (19.5%). Machinery and transport equipment was next with PhP12.32 billion (12.6%). The least share was contributed by animal and vegetable oils, fats and waxes with value amounting only to PhP1.25 billion (See Table 1).

Similarly, in the first quarter of 2005, food and live animals dominated the domestic trade with a share of 30.9 percent (PhP25.36 billion) of the total value. Mineral fuels, lubricants and related materials was next with a 17.3 percent share (PhP14.22 billion). This was followed by machinery and transport equipment followed with a share of 15.3 percent share (PhP12.58 billion). Animal and vegetable oils, fats and waxes likewise shared the least value of PhP792.75 million among the commodity sections (See Table 1).

Central Luzon leads in value of domestic trade

In the first quarter of 2006, Central Luzon accounted for 20.0 percent (PhP19.50 billion) of the total value of domestic trade, the largest share among the regions. The National Capital Region (NCR) was next with transactions amounting to PhP18.18 billion (18.6%). Western Visayas was third, contributing PhP12.64 billion (13.0%). Northern Mindanao followed closely with PhP12.35 billion (12.7%). Cagayan Valley remained to be the least contributing region with share of only PhP323 thousand.

In contrast, during the first quarter of 2005, NCR reported the highest domestic trade share at PhP14.69 billion (17.9%). Northern Mindanao was second with a total value of PhP13.49 billion (16.4%). Central Luzon was next with PhP12.67 billion (15.4%). MIMAROPA followed with PhP7.44 billion (9.1%). Cagayan Valley contributed the least share among the regions with only PhP91 thousand.

Central Luzon posts the highest favorable trade balance

Central Luzon recorded the most favorable balance of trade at PhP16.75 billion, in the first quarter of 2006. Four other regions registered more than a billion positive trade balances namely: Western Visayas (PhP4.74 billion), Northern Mindanao (PhP4.48 billion), Eastern Visayas (PhP2.73 billion), and SOCCSKSARGEN (PhP2.01 billion). However, inflows for NCR amounted to PhP28.73 billion resulting to the largest unfavorable balance of trade of negative PhP10.56 billion.

Likewise, in the first quarter of 2005, Central Luzon realized the most favorable trade balance at PhP12.35 billion. Other regions which surpassed the billion positive trade balance were Northern Mindanao, SOCCSKSARGEN, Eastern Visayas, and Davao Region, amounting to PhP7.90 billion, PhP3.04 billion, PhP2.19 billion and PhP1.06 billion, respectively. Central Visayas recorded the most unfavorable balance of trade at negative PhP11.20 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of September 29, 2006, and were not included in this special release:
   
   1. Sorsogon - Coastwise (March 2006)
   2. Cebu - Coastwise (January and March, 2006)
   3. Isabela City - Coastwise (January to March, 2006)
   4. Misamis Oriental - Air (January and February, 2006)
   5. Basilan - Coastwise (January to March, 2006)
   6. Sulu - Coastwise (March 2006)

2. There was no Rail Transaction in the First Quarter of 2005 due to the railroad accident in November 2004, which resulted to the stoppage of the operation of the Philippine National Railways (PNR).

Source:   National Statistics Office 
                Manila, Philippines