3.5 Palau Food and Additional Suppliers

Palau is the 207th largest export economy in the world. In 2016, Palau exported $46.1M and imported $395M, resulting in a negative trade balance of $349M.

The top exports of Palau are Non-fillet Fresh Fish ($13.3M), Passenger and Cargo Ships ($6.85M), Unspecified ($783k), Scrap Vessels ($334k) and Other Sea Vessels ($260k), using the 1992 revision of the Harmonized System (HS) classification.

Its top imports are Refined Petroleum ($25.8M), Passenger and Cargo Ships ($19.6M), Surveying Equipment ($7.51M), Cars ($6.12M) and Unspecified ($5.81M).

The Republic of Palau is a collection of islands and borders Indonesia, the Philippines and Micronesia by sea. As such, many traditional foods including fish and coconut, taro and breadfruit products, as well as pork and chicken which are grown at the community level.

There is also a large reliance on imported foods. Food is retailed through 3 main supermarkets and smaller operations that provide wholesaling functions attached to their main retail businesses. These supermarkets – Surangel, WCTC and Payless – are the main food importers into the country. They can, along with other local entrepreneurs, import additional food stocks and other items as required.

There is no food processing industry in Palau with the exception of a tuna packing plant in Koror.

Supplies of bulk food will need to be imported to meet additional humanitarian requirements. The supermarket and hardware stores, given the diversity of products they import and the existing connections they have, will be able to import a wide range of goods for humanitarian response.

All other goods, including computers, white goods, vehicles, plants, equipment and all spare parts are imported both for the US and Asian markets.

The type and quality of goods to be imported however, will need to be monitored closely, as lower quality, cheaper goods are generally what is stocked throughout retail outlets.

For more information, see The Observatory of Economic Complexity – MIT (OEC): https://atlas.media.mit.edu/en/profile/country/plw/

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and the WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

3.5.1 Palau Food Suppliers

Food Suppliers Overview

Other than fish and coconut products, Palau imports all food goods. Food is retailed through 3 main supermarkets in the retail space, that provide small wholesaling function attached to their main retail forms of business. These super markets are Surangel, WCTC and Payless, and are the main food importers into the country. There are also small grocery retailers in Koror, but less so in other states. They can, along with other local entrepreneurs, import additional food stocks if required. There is no food processing industry in Palau.

All supermarkets sell dairy, meat products, rice, sugar and oils. Cereals and pulses are imported in a much more limited way, but are available.

Though the food available is based on a combination of local and Western culture, there is a strong Japanese influence, which has brought sushi and Japanese’s restaurants to be situated throughout Koror. Given the work force is primarily supported by immigrant labour there is also an influence from the Philippines and the Indian subcontinent. As such, supplies for such foods are readily available.

For more information on food supplier contact details, please see the following link: 4.9 Additional Suppliers Contact List

Retail Sector

The primary retail sector is by way of 3 local supermarkets who are direct importers of their products and compete with each other. There are no global retailers.

Retailers Available
Type of Retailer	Rank (1-5)
Supermarkets - concentrate mainly on supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains.	3
Convenience Stores/Mini Markets – medium sized shop; offer a more limited range of products than supermarkets; usually have good/stable purchasing power; may be part of chain or cooperative.	3
Permanent shops with strong supply capacity – individually/family-owned store; usually offer fewer commodities and a limited selection of brands; good storage and reliable supply options.	3
Permanent shops with limited supply capacity – individually/family-owned store; offer fewer commodities and a limited selection of brands; limited storage and unstable supply options.	3-5
Mobile Shops/Market Stands – individually/family-owned store; usually offer fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	Multiple

Wholesale

Wholesale suppliers are the same retail supermarket companies as listed above: Sarabgel, WCTC and Payless. The former two have been established for over 30 years, while Payless was established within the last 10 years.

Supplier Overview
Company Name	Sarangel
Address	Surangel Building, 4th Floor, Ernguul Road Ikelau Koror, 295 Main St, Koror, PW 96940, Palau
Does the supplier have its own production/ manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes, it supplies direct to public.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in mt	N/A
Payment Methods Accepted	Cash at retail level / credit card at retail level
Other Comments or Key Information

Supplier Overview
Company Name	Western Caroline Trading Company (WCTC)
Address	Main Road Koror
Does the supplier have its own production/ manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes, it supplies direct to public.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes, but small
Approximate Turnover in MT	N/A
Payment Methods Accepted	Cash at retail level / credit card at retail
Other Comments or Key Information

Supplier Overview
Company Name	Payless
Address	Main Road Koror
Does the supplier have its own production/ manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes, supplies direct to public.
Does the supplier have its own transport capacity?	No
Does the supplier have its own storage facilities?	Limited
Approximate Turnover in mt	N/A
Payment Methods Accepted	Cash at retail level
Other Comments or Key Information

Other Locations
Region(s)	Service Location(s)
Peliliu, Angaur, Kayangel	Small convenience stores only

Primary Goods / Commodities Available
Commodities by Type**		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	None	Communities have chickens and pigs for local consumption.
01 - Meat and meat preparations	Primarily chicken and pork. Processed meats such as sausages. Canned spam, processed ham, bacon.
02 - Dairy products and birds’ eggs	Milk, yogurt, butter, cheese, eggs.
03 - Fish (not marine mammals), crustaceans, molluscs…	Fish (chilled or frozen), fish (salted or in brine), fish liver, fish roe.	Fish available to catch locally include tuna and Mahi Mahi.
04 - Cereals and cereal preparations	Predominantly rice, flour and pasta.	Imported.
05 - Vegetables and fruit	Vegetables, fruit and nuts, jams/jellies, fruit juice.	Tropical fruit and fresh salad vegetables are grown locally, as is traditional food such as Taro and breadfruit. Citrus fruit apples and other vegetables are mostly imported.
06 - Sugars, sugar preparations and honey	Processed sugars, processed honey, fruit/nuts preserved with sugar.
07 - Coffee, tea, cocoa, spices and manufactures thereof	Coffee, cocoa, chocolate, tea, mate, pepper.
09 - Miscellaneous edible products and preparations	Ready-to-eat foods, margarine, sauces, soups.	There is a large range of processed food available in supermarkets.
41 - Animal oils and fats	There is a limited supply of animal fats
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	Olive oil and vegetable oil.

**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

3.5.2 Palau Additional Suppliers

Additional Suppliers Overview

Wholesale suppliers, while few, carry a reasonable range of goods, and comprise the same suppliers outlined in 3.5.1 Food Suppliers.

The local businesses with the ability to import hardware and goods will be the main hardware suppliers and will therefore usually have access to goods required for humanitarian assistance i.e. tents, water pumps, pipes, water tanks, computer / IT equipment, office furniture, etc.

The primary businesses with the capacity to undertake this are ACE Hardware, Masons Hardware and KR Hardware, who have the main existing supply chains in place.

However, and more importantly, no goods are manufactured in Palau and all goods are imported. As such, volumes required (depending on the severity of humanitarian event) are unlikely to be in stock. A minimum two week delay will occur for stock arriving by sea, as Guam, Hawaii and Japan are the origin or transit ports of the regular shipping schedule.

For more information on suppliers’ contact details, please see the following link: 4.9 Additional Suppliers Contact List

Wholesale

Due to the limited nature of wholesale and retail suppliers in Palau, companies listed in 3.5.1 Food Suppliers are also potential suppliers of products other than food.

Palau has a small but strong supply network in a wide variety of industry sectors. For a comprehensive directory of business suppliers please refer to Annex 5.4 Business Index.

These can also be found online at http://www.palaunet.com/Directory.Listings.aspx

Supplier Overview
Company Name	Masons Hardware
Address	Main St Koror
Does the supplier have its own production/ manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	N/A
Payment Methods Accepted	Cash at retail level
Other Comments or Key Information	Building materials, Paint, Plumbing, Garden Timber, Tools, Gravel and Sand, Appliance, Marine Automotive

Supplier Overview
Company Name	ACE Office supplies and Hardware
Address	T Dock Koror
Does the supplier have its own production/ manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes, small.
Approximate turnover in USD - $	N/A
Payment Methods Accepted	Cash at retail level
Other Comments or Key Information	Plumbing, Electrical, Gardening, Nuts and Bolts, Tools, Houseware, Automarine, Appliance

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
24/27 - Crude materials, inedible, except fuel	Fuel wood, crude fertilizers, sand/stone/gravel.	Sand and gravel obtained locally from quarry
51 to 59 - Chemical and related products	Chlorine, pharmaceuticals, soaps, plastic tubes/pipes, chemical fertilizers.	All imported.
61 to 69 - Manufactured goods classified chiefly by material	Rubber tyres, wood pallets, textiles, cement, iron/steel pipe fittings, copper wire, plastic water tanks, tools.	All imported and available at ACE, Masons. Do It Best hardware supply a large range of water hardware and tools.
71 to 79 - Machinery and transport equipment	Engine/machine parts, generators, sewing machines, pumps, telecoms equipment, vehicles.	All imported. Specific vehicle parts need to be imported on a case-by-case basis. as only limited parts are available.
81 to 89 - Miscellaneous manufactured articles	Lighting fixtures, furniture, clothing, medical/surgical instruments.	All imported.
91/93/96/97 - Commodities not classified elsewhere	Computers and IT equipment	Computers Plus have a small range of items, as well as a limited servicing department.

**For FOOD products please see section 3.5.1 Food Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.

Please note: The WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.