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 second quarter of 2008 increased by 1.0 percent, resulting to 4.92 million tons from 4.87 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.9 percent, the same percentage recorded in the second quarter of 2007.

Likewise, there was also an increase in the total value of domestic trade by 23.6 percent from PhP65.99 billion in the second quarter of 2007 to PhP81.56 billion in the same period of 2008. The commodities were traded mostly through water comprising 99.9 percent and 99.8 percent in the second quarters of 2007 and 2008 respectively.

Food and live animals leads total domestic trade value

Among the commodities that flowed throughout the country in the second quarter of 2008, food and live animals contributed the largest value amounting to PhP25.60 billion (31.4%). This was followed by machinery and transport equipment with PhP16.22 billion (19.9%). Mineral fuels, lubricants and related materials was next with PhP14.62 billion (17.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP736.08 million (0.9%). (See Table 1)

Similarly, food and live animals dominated the domestic trade in the second quarter of 2007, with a share of 30.7 percent (PhP20.29 billion) of the total value. Machinery and transport equipment was second with a 16.3 percent share (PhP10.75 billion). Manufactured goods classified chiefly by materials followed with a share of 15.2 percent share (PhP10.06 billion). Contributing the least value of PhP624.79 million was animal and vegetable oils, fats and waxes. (See Table 1)

Western Visayas contributes the largest value of domestic trade

In the second quarter of 2008, most of the traded commodities came from Western Visayas with value of domestic trade amounting to PhP16.37 billion (20.1%). Central Luzon came second with PhP14.17 billion (17.4%). National Capital Region (NCR) was next with PhP13.70 billion (16.8%). Northern Mindanao followed with PhP12.42 billion (15.2%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP25 thousand.

For the same period in 2007, NCR had the highest domestic trade share at PhP24.29 billion (36.8%). Northern Mindanao was the second highest contributing region with PhP9.10 billion (13.8%). Central Luzon was next with PhP9.07 billion (13.7%). Western Visayas was fourth with PhP4.95 billion (7.5%). Cagayan Valley remained the least contributing region with only PhP14 thousand domestic trade share.

Central Luzon exhibits the highest favorable trade balance

Central Luzon posted the most favorable trade balance at PhP13.84 billion. Other regions which surpassed the billion positive trade balance were Western Visayas (PhP6.97 billion), Northern Mindanao (PhP5.33 billion), and Eastern Visayas (PhP4.56 billion). On the other hand, Central Visayas recorded an unfavorable trade balance of negative PhP10.92 billion. Other regions with more than a billion negative trade balances were NCR (-PhP10.58 billion), CALABARZON (-PhP2.64 billion), Caraga (-PhP2.04 billion), and MIMAROPA (-PhP1.79 billion).

For the same period in 2007, Central Luzon also realized the highest at PhP8.80 billion. Three other regions recorded more than a billion positive trade balances namely: National Capital Region (PhP8.01 billion), Northern Mindanao (PhP2.98 billion), and Eastern Visayas (PhP2.61 billion). On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP9.68 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of August 31 , 2008, and were not included in this special release:
   
   1. Occidental Mindoro - Coastwise (April to June 2008)
   2. Romblon - Coastwise (May and June 2008)
   3. Palawan - Coastwise (June 2008)
   4. Cebu - Coastwise (April to June 2008)
   5. Negros Oriental -Air (April to June 2008)
   6. Isabela City - Coastwise (April to June 2008)
   7. Zamboanga City - Coastwise (April and May 2008), Air (April 2008)
   8. Zamboanga del Sur (Pagadian City) - Coastwise (June 2008), Air (June 2008)
   9. Zamboanga del Norte - Coastwise (April to June 2008)
   10. Cotabato City - Coastwise (April to June 2008)
   11. Surigao del Sur - Coastwise (May and June 2008)
   12. Maguindanao - Coastwise (April to June 2008)
   13. Sulu - Coastwise (April to June 2008)

2. There was still no rail transaction in the second quarter of 2008 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