Commodity Flow in the Philippines : Second Quarter 2006 (Preliminary Results)

Reference Number: 


Release Date: 

Saturday, February 17, 2007

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 decreases

The total quantity of domestic trade transactions in the second quarter of 2006 decreased by 29.9 percent, resulting to 4.83 million tons from 6.89 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.9 percent and 99.8 percent in the second quarters of 2005 and 2006, respectively.

Figure 1

Likewise, the total value of commodities flowed within the country decreased by 9.2 percent from PhP87.75 billion in the second quarter of 2005 to PhP79.68 billion in the same period of 2006. Shipment through water was the major mode of transport with shares of 99.4 percent and 99.6 percent in the second quarters of 2005 and 2006, respectively.

Figure 2

Food and live animals dominates total domestic trade value

Among the commodities that were transacted throughout the country in the second quarter of 2006, food and live animals contributed the largest value amounting to PhP25.19 billion (31.6%). Machinery and transport equipment was next with PhP15.45 billion (19.4%). Manufactured goods classified chiefly by material followed with PhP11.79 billion (14.8%). Animal and vegetable oils, fats and waxes shared the least value of PhP345.94 million (0.4%) (See Table 1).

Figure 3

Food and live animals likewise dominated the domestic trade in the second quarter of 2005, with a share of 28.8 percent (PhP25.27 billion) of the total value. Mineral fuels, lubricants and related materials was second with a 19.0 percent share (PhP16.63 billion). Machinery and transport equipment followed closely with a share of 18.8 percent share (PhP16.49 billion). Contributing the least value of PhP696.71 million was animal and vegetable oils, fats and waxes (See Table 1).

Figure 4

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

Most of the traded commodities in the second quarter of 2006 came from NCR with value of domestic trade amounting to PhP22.69 billion (28.5%). Western Visayas came second with PhP12.21 billion (15.3%). This was followed by Central Luzon with PhP9.82 billion (12.3%). Northern Mindanao was next with PhP8.11 billion (10.2%). Eastern Visayas followed closely with PhP7.98 billion (10.0%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP278 thousand.

Figure 5

NCR also had the highest domestic trade share at PhP19.30 billion (22.0%) during the second quarter of 2005. Central Luzon was the second highest contributing region with PhP14.22 billion (16.2%). Northern Mindanao was next with PhP9.13 billion (10.4%). Eastern Visayas was fourth with PhP8.52 billion (9.7%). Western Visayas followed closely with PhP8.22 billion (9.4%). Cagayan Valley remained the least contributing region with only PhP672 thousand domestic trade share.

Figure 6

Central Luzon posts the highest favorable trade balance

In the second quarter of 2006, Central Luzon posted the most favorable balance of trade at PhP9.51 billion. Other regions which surpassed the billion positive trade balance were Western Visayas (PhP2.89 billion), Northern Mindanao (PhP2.58 billion), Eastern Visayas (PhP1.96 billion), and NCR (PhP1.86 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative PhP11.36 billion. Other regions with more than a billion negative trade balances were Caraga (-PhP2.95 billion), Zamboanga Peninsula (-PhP1.99 billion), and Davao Region (-PhP1.84 billion).

Figure 7

For the same period in 2005, Central Luzon also realized the most favorable trade balance at PhP13.80 billion. Four other regions recorded more than a billion positive trade balances namely: Eastern Visayas (PhP3.83 billion), Northern Mindanao (PhP3.01 billion), CALABARZON (PhP1.41 billion), and SOCCSKSARGEN (PhP1.13 billion). On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP10.90 billion.

Figure 8


DOMSTAT reports from the following provinces/cities were not yet received as of October 27, 2006, and were not included in this special release:

  1. Manila - Rail (June 2006)
  2. Occidental Mindoro - Coastwise (May and June, 2006)
  3. Cebu - Coastwise (April to June, 2006)
  4. Isabela City - Coastwise (May and June, 2006)
  5. Misamis Oriental - Air (May, 2006)
  6. Basilan - Coastwise (May and June, 2006)
  7. Sulu - Coastwise (April to June, 2006)

Source:   National Statistics Office 
                Manila, Philippines