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 fourth quarter of 2006 increased by 5.0 percent, resulting to 4.40 million tons from 4.19 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.8 percent in the fourth quarters of both years 2005 and 2006.

Likewise, the total value of commodities flowed within the country increased by 5.8 percent from PhP92.91 billion in the fourth quarter of 2005 to PhP98.27 billion in the same period of 2006. Shipment through water was the major mode of transport with shares of 99.6 percent in the fourth quarters of both years 2005 and 2006.

Food and live animals dominates total domestic trade value

Among the commodities that were transacted throughout the country in the fourth quarter of 2006, food and live animals contributed the largest value amounting to PhP32.65 billion (33.2%). Mineral fuels, lubricants and related materials was next with PhP15.90 billion (16.2%). Machinery and transport equipment followed with PhP14.64 billion (14.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP489.14 million (0.5%) (See Table 1).

Food and live animals likewise dominated the domestic trade in the fourth quarter of 2005, with a share of 30.6 percent (PhP28.43 billion) of the total value. Mineral fuels, lubricants and related materials was second with a 17.1 percent share (PhP15.88 billion). Machinery and transport equipment followed with a share of 14.5 percent share (PhP13.51 billion). Contributing the least value of PhP404.36 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 2006 came from NCR with value of domestic trade amounting to PhP23.32 billion (23.7%). Western Visayas came second with PhP16.36 billion (16.7%). This was followed by Central Luzon with PhP13.88 billion (14.1%). Northern Mindanao was next with PhP12.86 billion (13.1%). Eastern Visayas followed with PhP7.14 billion (7.3%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP26 thousand.

NCR also had the highest domestic trade share at PhP20.80 billion (22.4%) during the fourth quarter of 2005. Central Luzon was the second highest contributing region with PhP14.83 billion (16.0%). Western Visayas was next with PhP10.61 billion (11.4%). CALABARZON was fourth with PhP9.65 billion (10.4%). Eastern Visayas followed with PhP6.16 billion (6.6%). Cagayan Valley remained the least contributing region with only PhP45 thousand domestic trade share.

Central Luzon posts the highest favorable trade balance

In the fourth quarter of 2006, Central Luzon posted the most favorable balance of trade at PhP13.65 billion. Other regions which surpassed the billion positive trade balance were Northern Mindanao (PhP6.53 billion), Western Visayas (PhP5.45 billion), and Eastern Visayas (PhP1.54 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative PhP16.30 billion. Other regions with more than a billion negative trade balances were NCR (-PhP3.88 billion), Caraga (-PhP1.58 billion), Zamboanga Peninsula (-PhP1.24 billion), CALABARZON (-PhP1.15 billion), and MIMAROPA (-PhP1.10 billion).

For the same period in 2005, Central Luzon also realized the most favorable trade balance at PhP14.51 billion. Five other regions recorded more than a billion positive trade balances namely: 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 the most unfavorable balance of trade at negative PhP12.54 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of April 27, 2007, and were not included in this special release:
   
   1. Camarines Sur - Air (November and December 2006)
   2. Sorsogon - Coastwise (October to December 2006)
   3. Cebu - Coastwise (October to December 2006)
   4. Negros Oriental - Air (November 2006)
   5. Zamboanga del Sur - Coastwise (October to December 2006)
   6. Misamis Occidental - Coastwise (October to December 2006)
   7. Cotabato City - Coastwise (November and December 2006)
   8. Maguindanao - Coastwise (November and December 2006)
   9. Sulu - Coastwise (October to December 2006)

2. There was no rail transaction in the fourth quarter of 2006 due to the typhoons Milenyo and Reming that hit the country last September and November 2006, respectively, which resulted to the stoppage of the operation of the Philippine National Railways (PNR).

Source:   National Statistics Office 
                Manila, Philippines