Commodity Flow in the Philippines : Second Quarter 2005 (Preliminary Results)

19 January 2006

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 increases, value declines

The total quantity of domestic trade transactions in the second quarter of 2005 increased by 11.8 percent, resulting to 6.89 million tons from 6.16 million tons reported during the same period of last year. Most of the commodities were shipped through water, comprising 99.8 percent and 99.9 percent in the second quarters of 2004 and 2005, respectively.

Figure 1

On the other hand, the total value of commodities flowed within the country decreased by 1.7 percent from P89.25 billion in the second quarter of 2004 to P87.75 billion in the same period of 2005. Water was the major mode of transport with shares 99.6 percent and 99.4 percent in the second quarters of 2004 and 2005, respectively.

Figure 2

Food and live animals dominates total domestic trade value

Among the commodities that flowed throughout the country in the second quarter of 2005, food and live animals contributed the largest value amounting to P25.27 billion (28.8%). Mineral fuels, lubricants and related materials was next with P16.63 billion (19.0%). Machinery and transport equipment followed closely with P16.49 billion (18.8%). Animal and vegetable oils, fats and waxes shared the least value of P696.71 million (0.8%) (See Table 1).

Figure 3

Food and live animals likewise dominated the domestic trade in the second quarter of 2004, with a share of 25.0 percent (P22.28 billion) of the total value. Mineral fuels, lubricants and related materials followed with a 23.2 percent share (P20.74 billion). Machinery and transport equipment was next with a share of 19.0 percent share (P16.92 billion). Contributing the least value of P803.05 million was animal and vegetable oils, fats and waxes (See Table 1).

Figure 4

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

Most of the traded commodities in the second quarter of 2005 came from NCR with value of domestic trade amounting to P19.30 billion (22.0%). Central Luzon came second with P14.22 billion (16.2%). This was followed by Northern Mindanao with P9.13 billion (10.4%). Eastern Visayas was next with P8.52 billion (9.7%), while Western Visayas followed closely with P8.22 billion (9.4%). Cagayan Valley�s domestic trade contributed the least share with only P672 thousand.

Figure 5

Likewise, during the second quarter of 2004, NCR had the highest domestic trade share at P19.80 billion (22.2%). Central Luzon was the second highest contributing region with P18.46 billion (20.7%). Northern Mindanao came up third with P8.48 billion (9.5%). Eastern Visayas followed closely with P8.34 billion (9.3%). Cagayan Valley remained the least contributing region with only P72 thousand domestic trade share.

Figure 6

Central Luzon posts the highest favorable trade balance

In the second quarter of 2005, Central Luzon posted the most favorable balance of trade at P13.80 billion. Four other regions recorded more than a billion positive trade balances namely: Eastern Visayas (P3.83 billion), Northern Mindanao (P3.01 billion), CALABARZON (P1.41 billion), and SOCCSKSARGEN (P1.13 billion). On the other hand, Central Visayas suffered an unfavorable trade balance of negative P10.90 billion. Other regions with more than a billion negative trade balances were NCR (-P5.17 billion), Caraga (-P3.62 billion) and MIMAROPA (-P2.14 billion).

Figure 7

For the same period in 2004, Central Luzon also realized the most favorable trade balance at P17.90 billion. Other regions which surpassed the billion positive trade balance were Eastern Visayas, SOCCSKSARGEN, Northern Mindanao, and MIMAROPA, amounting to P2.83 billion, P2.71 billion, P1.72 billion and P1.60 billion, respectively. On the other hand, Central Visayas also suffered the most unfavorable balance of trade at negative P10.23 billion.

Figure 8


  1. DOMSTAT reports from the following provinces/cities were not yet received as of September 16, 2005, and were not included in this special release:
    1. Sorsogon - Coastwise (May 2005)
    2. Cebu - Coastwise (April to June, 2005)
    3. Davao Oriental - Coastwise (June 2005)
  1. There was no Rail Transaction in the April 2005 due to the railroad accident in November 2004, which resulted to the stoppage of the operation of the Philippine National Railways (PNR).

Source:   National Statistics Office 
                Manila, Philippines


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