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 boosts

The total quantity of domestic trade transactions in the third quarter of 2009 increased by 29.2 percent, resulting to 4.19 million tons from 3.25 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 2008 and 2009, respectively.

Similarly, total value of domestic trade increased by 35.2 percent from PhP71.38 billion in the third quarter of 2008 to PhP96.53 billion in the same period of 2009. The commodities were shipped mostly through water comprising 99.4 percent and 99.0 recorded in the third quarters of 2008 and 2009.

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 2009, food and live animals contributed the largest value amounting to PhP27.58 billion (28.6%). This was followed by machinery and transport equipment with PhP18.98 billion (19.7%). Mineral fuels, lubricants and related materials were next with PhP14.84 billion (15.4%). Animal and vegetable oils, fats and waxes shared the least value of PhP867.03 million (0.9%). (See Table 1)

Likewise, food and live animals dominated the domestic trade in the third quarter of 2008, with a share of 27.5 percent (PhP19.61 billion) of the total value. Machinery and transport equipment was second with a 20.2 percent share (PhP14.45 billion). Mineral fuels, lubricants and related materials followed with a share of 17.9 percent share (PhP12.80 billion). Contributing the least value of PhP1.15 billion 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 2009, most of the traded commodities came from National Capital Region (NCR) with value of domestic trade amounting to PhP26.20 billion (27.1%). Western Visayas came second with PhP13.84 billion (14.3%). Central Visayas was next with PhP12.90 billion (13.4%). Central Luzon followed with PhP11.37 billion (11.8%). Cagayan Valley�s domestic trade contributed the least share among the regions with only PhP19 thousand.

NCR had the highest domestic trade share at PhP12.39 billion (17.4%) for the same period in 2008. Western Visayas was the second highest contributing region with PhP11.31 billion (15.8%). Central Luzon was next with PhP10.85 billion (15.2%). Northern Mindanao was fourth with PhP9.69 billion (13.6%). Cagayan Valley remained the least contributing region with only PhP21 thousand domestic trade share.

Central Luzon exhibits the highest favorable trade balance

Central Luzon posted the most favorable trade balance at PhP11.25 billion. Other regions which surpassed the billion positive trade balance were NCR (PhP6.47 billion) and Eastern Visayas (PhP1.58 billion). On the other hand, Central Visayas recorded an unfavorable trade balance of negative PhP9.50 billion. Other regions with more than a billion negative trade balances were Zamboanga Peninsula (PhP2.54 billion), Caraga (PhP1.96 billion), CALABARZON (PhP1.72 billion), MIMAROPA (PhP1.42 billion) and Davao Region (PhP1.09).

For the same period in 2008, Central Luzon also realized the most favorable trade balance at PhP10.43 billion. Three other regions recorded more than a billion positive trade balances namely: Eastern Visayas (PhP5.97 billion), Northern Mindanao (PhP4.47 billion), Western Visayas (PhP2.81 billion. On the other hand, Central Visayas suffered the most unfavorable balance of trade at 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).

Notes:

1. DOMSTAT reports from the following provinces/cities were not yet received as of December 18, 2009, and were not included in this special release:
   
   1. Romblon - Coastwise (September 2009)
   2. Western Samar - Coastwise (July 2009), Air (July 2009)
   3. Misamis Occidental - Coastwise (July to September 2009)
   4. Sulu - Coastwise (July to September 2009)

2. Philippine National Railways (PNR) still no operation in the third quarter of 2009.

Source:   National Statistics Office 
                Manila, Philippines