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 increases, value declines

In the second quarter of 2007, the total quantity of domestic trade transactions increased by 0.9 percent, resulting to 4.87 million tons from 4.83 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 99.9 percent in the second quarters of 2006 and 2007, respectively.

On the other hand, there was a decrease in the total value of domestic trade by 17.2 percent from PhP79.68 billion in the second quarter of 2006 to PhP65.99 billion in the same period of 2007. The commodities were traded mostly through water, comprising 99.6 percent in the second quarter of 2006 and 99.9 percent in the second 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 second quarter of 2007 came from food and live animals amounting to PhP20.29 billion (30.7%). This was followed by machinery and transport equipment with PhP10.75 billion (16.3%). Manufactured goods classified chiefly by material was next with PhP10.06 billion (15.2%). The least share was contributed by animal and vegetable oils, fats and waxes with value amounting to PhP624.79 million (0.9%) (See Table 1).

Similarly, in the second quarter 2006, food and live animals dominated the domestic trade with a share of 31.6 percent (PhP25.19 billion) of the total value. Machinery and transport equipment was next with a 19.4 percent share (PhP15.45 billion). This was followed by manufactured goods classified chiefly by material followed with 14.8 percent share (PhP11.79 billion). Animal and vegetable oils, fats and waxes shared the least value of PhP345.94 million among the commodity sections (See Table 1).

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

In the second quarter of 2007, NCR accounted for 36.8 percent (PhP24.29 billion), of the total value of domestic trade, the largest share among the regions. Northern Mindanao followed with transactions amounting to PhP9.10 billion (13.8%). Central Luzon was third, contributing PhP9.07 billion (13.7%). Western Visayas was next with PhP4.95 billion (7.5%). Eastern Visayas followed closely with PhP4.63 billion (7.0%). Cagayan Valley remained to be the least contributing region with only PhP14 thousand.

For the same period in 2006, NCR also reported the highest domestic trade share of 28.5 percent (PhP22.69 billion). Western Visayas followed with a total value of PhP12.21 billion, accounting for 15.3 percent. Central Luzon was next with PhP9.82 billion (12.3%). Northern Mindanao was fourth with PhP8.11 billion (10.2%). Eastern Visayas followed closely with PhP7.98 billion (10.0%). Cagayan Valley contributed the least share among the regions with only PhP278 thousand domestic trade share.

Central Luzon leads in favorable trade balance

Central Luzon recorded the most favorable balance of trade at PhP8.80 billion. Three other regions registered more than a billion positive trade balance namely: NCR (PhP8.01 billion), Northern Mindanao (PhP2.98 billion), and Eastern Visayas (PhP2.61 billion). However, inflows for Central Visayas amounted to PhP10.93 billion resulting to the largest unfavorable balance of trade of negative PhP9.68 billion.

Likewise, in the second quarter of 2006, Central Luzon realized the most favorable trade balance at PhP9.51 billion. Other regions which surpassed the billion positive trade balance were Western Visayas, Northern Mindanao, Eastern Visayas, and NCR amounting to PhP2.89 billion, PhP2.58 billion, PhP1.96 billion, and PhP1.86 billion, respectively. Central Visayas recorded the most unfavorable balance of trade at negative PhP11.36 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of October 26, 2007, and were not included in this special release:
   
   1. Occidental Mindoro - Coastwise (April to June 2007)
   2. Catanduanes - Coastwise (June 2007)
   3. Iloilo - Coastwise (May and June 2007)
   4. Cebu - Coastwise (April to June 2007)
   5. Negros Oriental - Coastwise (June 2007)
   6. Northern Samar - Coastwise (April to June 2007) and Air (April to June 2007)
   7. Zamboanga del Norte - Coastwise (June 2007) and Air (June 2007)
   8. Zamboanga del Sur - Coastwise (April to June 2007)
   9. Zamboanga City - Coastwise (June 2007) and Air (May 2007)
   10. Misamis Oriental - Air (May and June 2007)
   11. Davao Oriental - Coastwise (April 2007)
   12. Cotabato City - Coastwise (April to June 2007)
   13. Maguindanao - Coastwise (April to June 2007)
   14. Sulu - Coastwise (April to June 2007)

2. There was still no rail transaction in the second 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