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 declines

The total quantity of domestic trade transactions in the third quarter of 2007 decreased by 7.8 percent, resulting to 3.38 million tons from 3.67 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.8 percent and 99.7 percent in the third quarters of 2006 and 2007, respectively.

Likewise, the total value of commodities flowed within the country decreased by 3.2 percent from PhP79.95 billion in the third quarter of 2006 to PhP77.39 billion in the same period of 2007. Shipment through water was the major mode of transport with shares of 99.7 percent and 99.4 percent in the third quarters of 2006 and 2007, respectively.

Food and live animals dominates total domestic trade value

Among the commodities that were transacted throughout the country in the third quarter of 2007, food and live animals contributed the largest value amounting to PhP20.39 billion (26.3%). Machinery and transport equipment was next with PhP14.33 billion (18.5%). Manufactured goods classified chiefly by material followed with PhP12.70 billion (16.4%). Animal and vegetable oils, fats and waxes shared the least value of PhP385.24 million (0.5%) (See Table 1).

Food and live animals likewise dominated the domestic trade in the third quarter of 2006, with a share of 30.1 percent (PhP24.04 billion) of the total value. Mineral fuels, lubricants and related materials was second with a 18.2 percent share (PhP14.58 billion). Machinery and transport equipment followed with a share of 15.4 percent share (PhP12.33 billion). Contributing the least value of PhP451.02 million was animal and vegetable oils, fats and waxes (See Table 1).

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

Most of the traded commodities in the third quarter of 2007 came from NCR with value of domestic trade amounting to PhP29.09 billion (37.6%). Central Luzon came second with PhP12.58 billion (16.3%). Western Visayas was next with PhP7.68 billion (9.9%). Eastern Visayas followed closely with PhP7.10 billion (9.2%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP94 thousand.

NCR also had the highest domestic trade share at PhP17.04 billion (21.3%) during the third quarter of 2006. Central Luzon was the second highest contributing region with PhP12.57 billion (15.7%). Western Visayas was next with PhP11.57 billion (14.5%). CALABARZON was fourth with PhP7.03 billion (8.8%). Cagayan Valley remained the least contributing region with only PhP103 thousand domestic trade share.

Central Luzon posts the highest favorable trade balance

In the third quarter of 2007, Central Luzon posted the most favorable balance of trade at PhP12.35 billion. Other regions which surpassed the billion positive trade balance were NCR (PhP11.76 billion) and Eastern Visayas (PhP3.82 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative PhP11.71 billion.

For the same period in 2006, Central Luzon also realized the most favorable trade balance at PhP12.32 billion. Four other regions recorded more than a billion positive trade balances namely: CALABARZON (PhP3.98 billion), Western Visayas (PhP3.71 billion), Eastern Visayas (PhP3.51 billion), and Northern Mindanao (PhP1.44 billion). On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP10.28 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of December 28, 2007, and were not included in this special release:
   
   1. Palawan - Coastwise (July to September 2007) and Air (July to September 2007)
   2. Camarines Sur - Air (August to September 2007)
   3. Sorsogon - Coastwise (September 2007)
   4. Capiz - Coastwise (September 2007) and Air (September 2007)
   5. Negros Occidental - Coastwise (September 2007) and Air (September 2007)
   6. Cebu - Coastwise (July to September 2007)
   7. Negros Oriental - Coastwise (September 2007) and Air (July 2007)
   8. Northern Samar - Coastwise (September 2007) and Air (September 2007)
   9. Zamboanga del Norte - Coastwise (July to September 2007) and Air (July to September 2007)
   10. Zamboanga del Sur - Coastwise (July to September 2007)
   11. Zamboanga City - Coastwise (August to September 2007) and Air (September 2007)
   12. Misamis Occidental - Coastwise (September 2007)
   13. Misamis Oriental - Coastwise (July to September 2007) and Air (August to September 2007)
   14. Davao Oriental - Coastwise (July 2007)
   15. Cotabato City - Coastwise (July to September 2007)
   16. Maguindanao - Coastwise (July to September 2007)
   17. Sulu - Coastwise (July to September 2007)

2. There being no rail transaction in the third 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