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 falls

The total quantity of domestic trade transactions in the third quarter of 2008 dropped by 4.0 percent, resulting to 3.25 million tons from 3.38 million tons reported during the same period of last year. The commodities were traded mostly through water comprising 99.7 percent and 99.8 percent in the third quarters of 2007 and 2008, respectively.

Similarly, total value of domestic trade decreased by 7.8 percent from PhP77.39 billion in the third quarter of 2007 to PhP71.38 billion in the same period of 2008. The commodities were shipped mostly through water comprising 99.4 percent the same percentage recorded in the third quarter of 2007.

Food and live animals contributes over one-fourth of the total domestic trade value

Among the commodities that flowed throughout the country in the third quarter of 2008, food and live animals contributed the largest value amounting to PhP19.61 billion (27.5%). This was followed by machinery and transport equipment with PhP14.45 billion (20.2%). Mineral fuels, lubricants and related materials were next with PhP12.80 billion (17.9%). Animal and vegetable oils, fats and waxes shared the least value of PhP1.15 billion (1.6%). (See Table 1)

Likewise, food and live animals dominated the domestic trade in the third quarter of 2007, with a share of 26.3 percent (PhP20.39 billion) of the total value. Machinery and transport equipment was second with a 18.5 percent share (PhP14.33 billion). Manufactured goods classified chiefly by materials followed with a share of 16.4 percent share (PhP12.70 billion). Contributing the least value of PhP385.24 million was animal and vegetable oils, fats and waxes. (See Table 1)

National Capital Region accounts the largest value of domestic trade

In the third quarter of 2008, most of the traded commodities came from National Capital Region (NCR) with value of domestic trade amounting to PhP12.39 billion (17.4%). Western Visayas came second with PhP11.31 billion (15.8%). Central Luzon was next with PhP10.85 billion (15.2%). Northern Mindanao followed with PhP9.69 billion (13.6%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP21 thousand.

NCR had the highest domestic trade share at PhP29.09 billion (37.6%) for the same period in 2007. Central Luzon was the second highest contributing region with PhP12.58 billion (16.3%). Western Visayas was next with PhP7.68 billion (9.9%). Eastern Visayas was fourth with PhP7.10 billion (9.2%). Cagayan Valley remained the least contributing region with only PhP94 thousand domestic trade share.

Central Luzon exhibits the highest favorable trade balance

Central Luzon posted the most favorable trade balance at PhP10.43 billion. Other regions which surpassed the billion positive trade balance were Eastern Visayas (PhP5.97 billion), Northern Mindanao (PhP4.47 billion), and Western Visayas (PhP2.81 billion). On the other hand, Central Visayas recorded an unfavorable trade balance of negative PhP11.11 billion. Other regions with more than a billion negative trade balances were NCR (PhP7.03 billion), CALABARZON (PhP2.86 billion), Caraga (PhP1.69 billion), and Zamboanga Peninsula (PhP1.61 billion).

For the same period in 2007, Central Luzon also realized the most favorable trade balance at PhP12.35 billion. Two other regions recorded more than a billion positive trade balances namely: National Capital Region (PhP11.76 billion), and Eastern Visayas (PhP3.82 billion. On the other hand, Central Visayas suffered the most unfavorable balance of trade at negative PhP11.71 billion.

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of December 17, 2008, and were not included in this special release:
   
   1. La Union - Coastwise (July to September 2008)
   2. Isabela City - Coastwise (July to September 2008)
   3. Sulu - Coastwise (July to September 2008)
   4. Basilan - Coastwise (July to September 2008)
   5. Tawi-Tawi -Coastwise (July 2008)
   6. Cebu - Coastwise (July to September 2008)
   7. Zamboanga City - Coastwise (August & September 2008) Air (July to September 2008)
   8. Catanduanes - Coastwise (September 2008)

2. There was still no rail transaction in the third 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