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 increase

In the fourth quarter of 2007, the total quantity of domestic trade transactions increased by 20.3 percent, resulting to 5.30 million tons from 4.40 million tons reported during the same period of last year. Water was the major mode of transport of commodities with shares of 99.8 and 99.7 percent in the fourth quarters of 2006 and 2007, respectively.

Similarly, there was also an increase in the total value of domestic trade by 3.1 percent from PhP98.27 billion in the fourth quarter of 2006 to PhP101.30 billion in the same period of 2007. The commodities were traded mostly through water, comprising 99.6 percent in the fourth quarter of 2006 and 99.4 percent in the fourth quarters of 2007.

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 fourth quarter of 2007 came from food and live animals amounting to PhP31.49 billion (31.1%). This was followed by machinery and transport equipment with PhP16.91 billion (16.7%). Mineral fuels, lubricants and related materials was next with PhP15.23 billion (15.0%). The least share was contributed by animal and vegetable oils, fats and waxes with value amounting only to PhP748.58 million (0.7%) (See Table 1).

Similarly, in the fourth quarter of 2006, food and live animals dominated the domestic trade with a share of 33.2 percent (PhP32.65 billion) of the total value. Mineral fuels, lubricants and related materials was next with a 16.2 percent share (PhP15.90 billion). This was followed by machinery and transport equipment with 14.9 percent share (PhP14.64 billion). Animal and vegetable oils, fats and waxes shared the least value of PhP489.14 million among the commodity sections (See Table 1).

National Capital Region (NCR) posts the highest value of domestic trade

In the fourth quarter of 2007, NCR accounted for 29.8 percent (PhP30.21 billion), of the total value of domestic trade, the largest share among the regions. Northern Mindanao followed with transactions amounting to PhP14.86 billion (14.7%). Western Visayas was third, contributing PhP13.94 billion (13.8%). Central Luzon was next with PhP12.98 billion (12.8%). Cagayan Valley remained to be the least contributing region with only PhP21 thousand.

For the same period in 2006, the National Capital Region (NCR) had the highest domestic trade share at PhP23.32 billion (23.7%). Western Visayas was the second highest contributing region with PhP16.36 billion (16.7%). Central Luzon followed with PhP13.88 billion (14.1%). Northern Mindanao was fourth with PhP12.86 billion (13.1%). Cagayan Valley contributed the least share among the regions with only PhP26 thousand domestic trade share.

Central Luzon leads in favorable trade balance

Central Luzon recorded the most favorable balance of trade at PhP12.57 billion. Three other regions registered more than a billion positive trade balance namely: Northern Mindanao (PhP6.07 billion), Eastern Visayas (PhP4.76 billion), and NCR (PhP4.55 billion). However, inflows for Central Visayas amounted to PhP16.93 billion resulting to the largest unfavorable balance of trade of negative PhP15.53 billion.

Likewise, in the fourth quarter of 2006, Central Luzon realized the most favorable trade balance at PhP13.65 billion. Other regions which surpassed the billion positive trade balance were Northern Mindanao, Western Visayas, and Eastern Visayas amounting to PhP6.53 billion, PhP5.45 billion, and PhP1.54 billion, respectively. Central Visayas recorded the most unfavorable balance of trade at negative PhP16.30 billion.

Notes:

1. DOMSTAT reports from the following provinces / cities were not yet received as of March 28, 2008, and were not included in this special release:
   
   1. Camarines Sur - Air (October to December 2007)
   2. Masbate - Coastwise (November to December 2007)
   3. Capiz - Coastwise (December 2007)
   4. Cebu - Coastwise (October to December 2007)
   5. Zamboanga del Norte - Coastwise (October to December 2007) and Air (October to December 2007)
   6. Zamboanga del Sur - Coastwise (October to December 2007)
   7. Zamboanga City - Air (December 2007)
   8. Misamis Occidental - Coastwise (October 2007)
   9. Cotabato City - Coastwise (October to December 2007)
   10. Maguindanao - Coastwise (October to December 2007)
   11. Sulu - Coastwise (October to December 2007)
   12. Tawi-tawi - Coastwise (October 2007)

2. There was still no rail transaction in the fourth quarter of 2007 due to the typhoons Milenyo and Reming that hit the country, which resulted to the stoppage of the operation of the Philippine National Railways (PNR).

Source:   National Statistics Office 
                Manila, Philippines