Setting up Mushroom compost (phase II), production facility in North Macedonia Note: This project has been cancelled, because RVO has no confidence that it will be successfully completed in the short term.The joint venture aims to establish a high quality mushroom compost production facility in Sveti Nikole, North Macedonia. This region has favourable climate conditions for producing compost. At the moment, no high quality mushroom compost is available in North Macedonia, therefore local mushroom growers are dependent on (low quality) imports from Serbia and Hungary. There is no local knowledge to produce high quality mushroom compost. The applicant, De Greef Champignons B.V. (part of Geurts Teelt B.V.) is a Dutch mushroom grower and is also experienced in producing high quality mushroom compost. Local partner Aksios DMS Doo has been active as a peat producer in North Macedonia since 2007, hence they have a wide sales network of mushroom growers in North Macedonia and wider West Balkan region, who use peat as casing material.The newly established joint venture will produce high quality compost by introducing the latest technology producing mushroom compost phase II and safeguarding this quality by using a small laboratory at its premises in North Macedonia. They will produce for domestic and West Balkan export markets within EU standards at a competitive price. The hardware investment will be substantial with among others the installation of a composting tunnel and a compost bunker. The joint venture will employ 21 staff members, they will receive proper training in order to realise production and quality standards.Corporate Social Responsibility (CSR)De Greef underlines the importance of CSR principles in practice with their GlobalGAP and TESCO certificates given the mushroom industry’s infamous reputation in CSR matters. This leading position will also be applied at the joint venture, which implies the adoption of comparative CSR standards like ISO 9000, ISO 14000 and OHSAS certificates.Impact•	Employment and working conditionsThe joint venture will pay out 200% of average gross wage in agricultural sector, which results in 18 FTE out of 21 FTE will earn between € 400 and € 700 gross per month. In Sveti Nikole, a poor agricultural region, this is really a good wage, as the average wage there is significantly lower than the nationwide gross salary of € 504.  Furthermore, they will offer training options and 20 days of leave and they will focus on creating a team-spirit within the company. OHSAS certification will be implemented in the joint venture.•	Innovation / Transfer of knowledgeAt the moment, no mushroom compost is being produced in North Macedonia nor is mushroom compost produced in the wider Balkan region with the latest phase II technology, which allows for higher quality compost with less risk of diseases and higher product yield (32%). It is a high-tech production with computerised monitoring system. It is also about new working methods, which will involve a lot of constant monitoring and controlling the quality of compost by a small laboratory. In the future, this technology can easily be upgraded to 40% yield with phase III technology.•	Chain effectsImpact on local suppliersLocal suppliers will benefit from this joint venture, which are all based in North Macedonia. The suppliers of raw materials straw and poultry manure are considered as outgrowers. Project partners have already discussed future business dealings with them. They will no longer have to pay for removal of their waste products straw and manure or a fine when they illegally burn the straw remnants on the fields, but are offered compensation instead. That is advantageous for them.Impact on local customers or consumersThis project has a big impact on the local and wider West Balkan mushroom growing industry, as the joint venture’s product allows these farmers to exceed their product yield by 45% from 22% to 32%. The joint venture will also train the mushroom growers in ‘how to maximise production quality and output’, which also deals with better space utilization. Mushroom growers who want to benefit from North Macedonian IPARD-subsidy (50% government subsidy) by means of investing in higher production or quality levels will definitely need this training, which will be provided for by the joint venture. Given the lower product costs than existing imported compost, better quality mushrooms and increased yield, this project will really help these farmers’ baseline. There is a growing customer demand for fresh mushrooms from retail clients/stores, restaurants in the region, which will allow for their increased off take. The new compost is also less disease ridden (due to controlled incubation process), which will lead to healthier and whiter mushrooms, which is also helpful for the sales potential of mushrooms.•	Impact on the sectorThe joint venture will offer traineeships for promising students from agricultural universities in Stip, Skopje and Sveti Nikole. They have established contacts with these institutes already.•	EnvironmentThe joint venture will reduce the impact of waste products on the North Macedonian environment. At the moment, straw is widely burnt illegally and manure is expensive to be disposed of. Their re-use in the compost production process makes them more economical assets. The joint venture’s premises design will be aligned with all necessary North Macedonian environment regulation and ISO 14000 certification.•	Position of womenThe joint venture will adopt a non-discrimination policy on gender. They will employ 7 FTE women, of which 3 FTE in high position and 4 FTE in medium positions.•	Impact on food safetyThe project will greatly enhance the production volume and quality of mushrooms in North Macedonia and the West Balkan region. These mushrooms are of better quality and taste, which will further increase the consumption of local mushrooms. The project wants to build a high quality mushroom compost production facility in Macedonia, which will produce 9,400 tons compost per year for the local North Macedonian and nearby West Balkan markets at the end of the project.