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

The total quantity of domestic trade transactions in the first quarter of 2010 increased by 26.3 percent, resulting to 4.24 million tons from 3.36 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.8 percent and 99.7 percent in the first quarter of 2009 and 2010, respectively.

On the other hand, the total value of commodities flowed within the country increased by 10.4 percent from PhP84.86 billion in the first quarter of 2009 to PhP93.73 billion in the same period of 2010. Shipment through water was the major mode of transport the same percentage shares of 99.3 percent in the first quarter of 2009.

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

Among the commodities that were transacted throughout the country in the first quarter of 2010, food and live animals contributed the largest with value amounting to PhP27.07 billion (28.9%). This was followed by machinery and transport equipment with PhP20.45 billion (21.8%) and mineral fuels, lubricants and related materials followed with PhP16.79 billion (17.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.65 billion (1.8%). (See Table 1)

Likewise, food and live animals dominated the domestic trade in the first quarter of 2009, with a share of 32.6 percent (PhP27.70 billion) of the total value. This was followed by machinery and transport equipment with 18.8 percent share (PhP15.93 billion), mineral fuels, lubricants and related materials with a share of 14.8 percent share (PhP12.5 billion). Contributing the least value of PhP1.03 billion (1.2 percent) was animal and vegetable oils, fats and waxes. (See Table 1)

National Capital Region accounts for the largest value of domestic trade

In the first quarter of 2010, most of the traded commodities came from National Capital Region with value of domestic trade amounting to PhP13.50 billion (14.4%). Western Visayas came in second with PhP13.15 billion (14.0%), followed by Eastern Visayas with PhP12.63 billion (13.5%), followed by Central Luzon with PhP12.51 billion (13.3%) and Northern Mindanao with PhP11.65 billion (12.4%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP108 thousand.

Likewise, NCR had the highest domestic trade share at PhP26.64 billion (31.4%) during the first quarter of 2009. Western Visayas was the second with PhP15.50 billion (18.3%). Northern Mindanao was next with PhP11.73 billion (13.8%), followed by Central Luzon with PhP9.77 billion (11.5%). Cagayan Valley�s domestic trade contributed the least share among the region with only PhP18 thousand.

Central Luzon leads in favorable trade balance

In the first quarter of 2010, Central Luzon posted the most favorable balance of trade at PhP12.10 billion. Other regions which surpassed the billion positive trade balance were Eastern Visayas (PhP7.31 billion), Northern Mindanao (PhP4.74 billion), and SOCCSKSARGEN (PhP2.31 billion). On the other hand, NCR suffered an unfavorable trade balance of negative PhP10.26 billion. From having a positive trade balance for the same period last year NCR had a negative trade balance for the 1st quarter of 2010. Other regions with more than a billion negative trade balances were Central Visayas, (-PhP6.69), Caraga (-PhP4.40), and CALABARZON (-PhP3.72 billion).

For the same period in 2009, Central Luzon posted the most favorable balance of trade at PhP9.45 billion. Other regions which surpassed the billion positive trade balance were Northern Mindanao (PhP5.25 billion), NCR (PhP5.24 billion), and Eastern Visayas (PhP1.97 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative PhP15.54 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of June 8, 2010, and were not included in this special release:
   
   1. Romblon - Coastwise (March 2010)
   2. Negros Occidental - Coastwise (March 2010)
   3. Cebu - Coastwise (March 2010)
   4. Negros Oriental - Coastwise (January to March 2010)
   5. Western Samar - Coastwise (March 2010)
   6. Davao Oriental - Coastwise (January to March 2010)
   7. Sulu - Coastwise (February and March 2010)
   8. Tawi-Tawi - Coastwise (January to March 2010)

2. As of first quarter of 2010 Philippine National Railways (PNR) still not resume its operation.

Source:   National Statistics Office 
                Manila, Philippines