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 falls, value accelerates

The total quantity of domestic trade transactions in the second quarter of 2009 decreased by 11.2 percent, resulting to 4.37 million tons from 4.92 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.9 percent and 99.8 percentage recorded in the second quarters of 2008 and 2009, respectively.

On the other hand, the total value of commodities flowed within the country increased by 36.3 percent from PhP81.56 billion in the second quarter of 2008 to PhP111.19 billion in the same period of 2009. Trade transactions through water was the major mode of transport comprising 99.8 percent in the second quarter of 2008 and 99.2 percent in the same period of the current year.

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

One in three commodities that were transacted throughout the country in the second quarter of 2009 belongs to food and live animals which contributed the largest value amounting to PhP35.38 billion (31.8%). Machinery and Transport Equipment was next with PhP21.41 billion (19.3%). Manufactured Goods Classified Chiefly by Material followed with PhP16.70 billion (15.0%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.20 billion (1.1%). (Table 1)

Likewise, Food and live animals dominated the domestic trade in the second quarter of 2008, with a share of 31.4 percent (PhP25.60 billion) of the total value. Machinery and transport equipment was second with a 19.9 percent share (PhP16.22 billion). Mineral fuels, lubricants and related materials followed with a share of 17.9 percent share (PhP14.62 billion). Animal and vegetable oils, fats and waxes shared the least value of PhP736.08 million (0.9%). (Table 1)

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

Most of the traded commodities in the second quarter of 2009 came from NCR with value of domestic trade amounting to PhP30.84 billion (27.7%). Northern Mindanao came second with PhP19.96 billion (18.0%). Western Visayas was next with PhP17.63 billion (15.9%). Central Luzon followed with PhP10.50 billion (9.4%). Cagayan Valley's domestic trade contributed the least share among the regions with only PhP84 thousand.

For the same period in 2008, Western Visayas had the highest domestic trade share at 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.

Northern Mindanao leads in favorable trade balance

In the Second quarter of 2009, Northern Mindanao posted the most favorable balance of trade at PhP11.04 billion. Other regions which surpassed the billion positive trade balance were Central Luzon (PhP10.29 billion), NCR (PhP4.07 billion), and Eastern Visayas (PhP2.41 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative PhP15.06 billion. Other regions with more than a billion negative trade balances were Zamboanga Peninsula (-PhP3.71 billion), Caraga (-PhP2.64 billion), CALABARZON (-PhP2.14 billion), and MIMAROPA (-PhP1.79 billion).

For the same period in 2008, Central Luzon realized the most favorable trade balance at PhP13.84 billion. Three other regions recorded more than a billion positive trade balances namely: Western Visayas (PhP6.97 billion), Northern Mindanao (PhP5.33 billion), and Eastern Visayas (PhP4.56 billion). On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP10.92 billion.

Notes:

* - No Rail Transaction in the Second Quarters of 2008 and 2009

1. DOMSTAT reports from the following provinces/cities were not yet received as of September 4, 2009, and were not included in this special release:
   
   1. Occidental Mindoro - Coastwise (May & June 2009)
   2. Western Samar - Coastwise (April to June 2009); Air (April to June 2009)
   3. Zamboanga City - Coastwise (June 2009); Air (June 2009)
   4. Sulu - Coastwise (April to June 2009)

2. As of second quarter of 2009 Philippine National Railways (PNR) still not resume its operation.

Source:   National Statistics Office 
                Manila, Philippines