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 expands

The total quantity of domestic trade transactions in the fourth quarter of 2009 increased by 47.8 percent from 3.73 million tons reported during the same period of last year to 5.51 million tons . The commodities were traded mostly through water transport systems comprising 99.8 percent, the same percentage recorded in the fourth quarter of 2008.

Likewise, total value of domestic trade increased by 21.0 percent from PhP91.68 billion in the fourth quarter of 2008 to PhP110.95 billion in the same period of 2009. The commodities were shipped mostly through water transport systems comprising 99.5 percent and 99.2 percent recorded in the fourth quarter of 2008 and 2009.

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

The bulk of the value of commodities that flowed throughout the country in the fourth quarter of 2009 came from food and live animals with value amounting to PhP34.76 billion (31.3%). This was followed by machinery and transport equipment with PhP23.64 billion (21.3%)and mineral fuels, lubricants and related materials with PhP16.44 billion (14.8%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.00 billion (0.9%). (See Table 1)

Similarly, food and live animals contributed the largest value amounting to PhP28.01 billion (30.6%) among the commodities that flowed throughout the country in the fourth quarter of 2008. This was followed by machinery and transport equipment with PhP19.71 billion (21.5%) and manufactured goods classified chiefly by materials with PhP12.71 billion (13.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.40 billion (1.5%). (See Table 1)

National Capital Region (NCR) leads in value of domestic trade share

In the fourth quarter of 2009, most of the traded commodities came from NCR with value of domestic trade amounting to PhP23.43 billion (21.1%). Western Visayas came second with PhP16.54 billion (14.9%) followed by Central Visayas with PhP14.26 billion (12.9%), Eastern Visayas with PhP13.35 billion (12.0%) and Northern Mindanao with PhP13.06 billion (11.8%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP96 thousand.

Similarly, for the same period in 2008, NCR had the highest domestic trade share at PhP29.94 billion (32.7%). Western Visayas came second with PhP13.86 billion (15.1%). Northern Mindanao was next with PhP12.47 billion (13.6%), followed by Central Luzon with PhP10.78 billion (11.8%). The domestic trade of Zamboanga Peninsula contributed the least share among the regions with only PhP12.31 million.

Central Luzon posts the highest favorable trade balance

For the fourth quarter of 2009, Central Luzon maintained its rank as having the most favorable trade balance at PhP11.99 billion. Other regions which recorded more than a billion positive trade balances were Eastern Visayas (PhP6.16 billion), Northern Mindanao (PhP4.18 billion), and SOCCSKSARGEN (PHP1.53). On the contrary, Central Visayas still had the most unfavorable balance of trade at negative (PhP9.00) billion. Other regions with more than a billion negative trade balance were Caraga (PhP5.69 billion), Zamboanga Peninsula (PhP3.29), CALABARZON (PhP3.17 billion) and National Capital Region (PhP2.48 billion). From having a positive trade balance for the same period last year NCR had a negative trade balance for the 4th Quarter of 2009.

For the same period in 2008, Central Luzon posted the most favorable trade balance at PhP10.53 billion. Other regions which surpassed the billion positive trade balance were National Capital Region (PhP8.79 billion), Eastern Visayas (PhP5.82 billion), and Northern Mindanao (PhP4.43 billion). On the other hand, Central Visayas had the most unfavorable trade balance of negative PhP19.53 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of March 13, 2010, and were not included in this special release:
   
   1. Quezon - Coastwise (December 2009)
   2. Romblon - Coastwise (December 2009)
   3. Negros Oriental - Air (October 2009)
   4. Misamis Occidental - Coastwise (October - December 2009); Air (October - Dececember 2009)
   5. Davao Oriental - Coastwise (October to December 2009)
   6. Sulu - Coastwise (December 2009)

2. Philippine National Railways (PNR) still did not operate in the fourth quarter of 2009.

Source:   National Statistics Office 
                Manila, Philippines