High-quality compost improves income and living standards of mushroom growers Applicant Beheers- en Beleggingsmaatschappij H.G.P.J. Heijer B.V. from Horst, the Netherlands, is a mushroom cultivation consultant. Local partner Johnnarhov LLC is a processor of mushrooms in Armenia. Together with partner Aroghj Sunk LLC, the largest local producer of mushrooms and mushroom compost, they will set up a new joint venture producing Phase III mushroom compost. The project will be located on the premises of the third partner in Armenia’s Armavir province.Currently, this product is not produced in Armenia. The voluminous product is however imported by truck from places as far away as the Netherlands and Belgium. The product can be distinguished from phase II and I compost in delivering higher yields and having shorter growth cycles.The project will reduce dependency on imports and gives local mushroom growers an opportunity to improve and increase their production. Also, local consumers will profit from increased affordability and availability of mushrooms.Corporate Social Responsibility (CSR)Partners are willing to adhere to Global GAP standards, and indicated that they are willing to make such certification part of the PSI project results. However, they consider this certificate not of added value to their customers. Partners will assist 20 new mushroom growers in setting up a new business. This will be part of the project results. Partners will also provide assistance to existing customers to increase their yields.Impact•	Employment and working conditionsPartners will pay living wages. Salaries vary between 300 euro and 800 euro. The lowest salary is over 200% of minimum wages. Employees will receive full health care, disability pay and vocational training.•	Innovation / Transfer of knowledgeCurrently, there is no production of Phase III compost in Armenia.•	Chain effectsImpact on local suppliersThird partner will be the main supplier of Phase II compost. Increased production and cheaper availability of phase III compost will provide an opportunity to small scale farmers to start producing mushrooms. The increase in mushroom compost production gives more farmers the opportunity to sell their straw to the joint venture.Impact on local customers or consumersLocal mushroom growers will get access to affordable Phase III mushroom compost. The shorter growth cycle means that yields will improve. For consumers, this means that the availability of mushrooms will improve. This will lead to lower prices, but due to the increased quantities, partners still expect profits to rise.Partners will assist twenty smallholders to start mushroom production. Phase III compost is more suitable for this than the currently available Phase II variety. Applicant has experience in a project like this in Colombia.•	Impact on the sectorPartners will set up a cooperation of mushroom growers in Armenia. Together with this cooperation, the joint venture will organize training and education of mushroom farmers. The joint venture will cooperate with the Armenian National Agrarian University for this. This will lead to a traineeship programme. Four traineeships will be part of the project results.•	EnvironmentUsed compost will be picked up by the partners. The material will be composted again at a local firm producing bio humus. This Norwegian-Armenian joint venture produces the first commercially traded organic fertilizer in Armenia.•	Position of womenHalf of the medium/high positions in the new company will be occupied by women.•	Impact on food safetyImproved availability and better affordability of mushrooms. Mushrooms contain fibres and are a source of protein, iron, potassium and calcium.•	Impact on waterThe project partners will install biobed filtering technology in order to reuse water. To produce 14,000 tons of Phase III mushroom compost per year for the South Caucasus mushroom market.