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 of domestic trade declines, value increases

The total quantity of domestic trade transactions in the fourth quarter of 2005 decreased by 7.4 percent, resulting to 4.19 million tons from 4.53 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.7 percent and 99.8 percent in the fourth quarters of 2004 and 2005, respectively.

On the other hand, the total value of commodities flowed within the country increased by 19.5 percent from Php77.73 billion in the fourth quarter of 2004 to Php92.91 billion in the same period of 2005. Shipment through water was the major mode of transport with shares of 99.1 percent and 99.6 percent in the fourth quarters of 2004 and 2005, respectively.

Food and live animals dominates total domestic trade value

Among the commodities that were transacted throughout the country in the fourth quarter of 2005, food and live animals contributed the largest value amounting to Php28.43 billion (30.6). Mineral fuels, lubricants and related materials was next with Php15.88 billion (17.1). Machinery and transport equipment followed with Php13.51 billion (14.5). Animal and vegetable oils, fats and waxes shared the least value of Php404.36 million (0.4) (See Table 1).

Food and live animals likewise dominated the domestic trade in the fourth quarter of 2004, with a share of 30.3 percent (Php23.52 billion) of the total value. Mineral fuels, lubricants and related materials followed with a 21.8 percent share (Php16.91 billion). Machinery and transport equipment was next with a share of 17.1 percent share (Php13.29 billion). Contributing the least value of Php406.55 million was animal and vegetable oils, fats and waxes (See Table 1).

National Capital Region (NCR) contributes the largest value of domestic trade

Most of the traded commodities in the fourth quarter of 2005 came from NCR with value of domestic trade amounting to Php20.80 billion (22.4). Central Luzon came second with Php14.83 billion (16.0). This was followed by Western Visayas with Php10.61 billion (11.4). CALABARZON was next with Php9.65 billion (10.4.). Cagayan Valley?s domestic trade contributed the least share among the regions with only Php45 thousand.

Central Luzon had the highest domestic trade share at Php16.00 billion (20.6) during the fourth quarter of 2004. NCR was the second highest contributing region with Php12.37 billion (15.9). Northern Mindanao followed closely with Php12.16 billion (15.6). Eastern Visayas was next with Php8.85 billion (11.4). Cagayan Valley remained the least contributing region with only Php33 thousand domestic trade share.

Central Luzon posts the highest favorable trade balance

In the fourth quarter of 2005, Central Luzon posted the most favorable balance of trade at Php14.51 billion. Other regions which surpassed the billion positive trade balance were CALABARZON (Php4.65 billion), Western Visayas (Php3.08 billion), SOCCSKSARGEN (Php2.24 billion), Eastern Visayas (Php2.17 billion), and Davao Region (Php1.82 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative Php12.54 billion. Other regions with more than a billion negative trade balances were NCR (-Php5.19 billion), MIMAROPA (-Php5.18 billion), Caraga (-Php1.99 billion) and Zamboanga Peninsula (-Php1.71 billion).

For the same period in 2004, Central Luzon also realized the most favorable trade balance at Php15.74 billion. Four other regions recorded more than a billion positive trade balances namely: Northern Mindanao (Php6.33 billion), Eastern Visayas (Php6.00 billion), SOCCSKSARGEN (Php3.80 billion), and MIMAROPA (Php3.47 billion). On the other hand, NCR suffered the most unfavorable balance of trade at negative Php11.60 billion.

Source:   National Statistics Office 
                Manila, Philippines