Innovative production of Shiitake in the Philippines The partners have established a year round Shiitake mushroom operation in the Philippines on the island Mindanao. The joint venture sells the production on the higher market segment of the Philippines market and to other Asian countries. The applicant Exoten Champignons Trading Europe B.V. (ECT) is active in trade of mushrooms. The local partner is San Andres Fishing Industries, Inc. (SAFI) a company with many daughter companies active in fishing, shipbuilding, agro industries, tourism etc.The project fits in the diversification strategy of SAFI. ECT does not produce mushrooms but is active in trade. Production is the next step in the development of the company. The partners has used external consultants to implement the project. ECT was responsible for a part of the training. The partners have established a joint venture for the project.The market for mushrooms is increasing 5% per year. The Chinese competitors provide mushrooms of a lower quality and the partners are confident that the better mushrooms of the joint venture finds their way to the customers.The project is new for the country where to a limited extend mushrooms are being grown for local use. The production technique that has been introduced is new for the Philippines. The operations are on a high level due to the requirements of the certificates under which the joint venture operates.The project includes a demo farm that secures a certain volume of production. Furthermore, 100 outgrowers will get the opportunity to grow for the joint venture. They get equipment and grow bags and their task is to grow the mushrooms and to harvest them.Corporate Social Responsibility (CSR)The project implements good and efficient CSR standards through various certifications. The joint venture uses the labour contracts of local partner SAFII that include good CSR principles. A CSR policy for the joint venture was one of the MoVs of the PSI project.Impact•	Employment and working conditionsThrough the different certifications to be acquired by the joint venture like HACCP, BRD and ISO 9001 the working conditions will of a good level.Additionally, day-care is available for employees.The labour contract offers more than the already good labour law of the Philippines. Wages are acceptable 20% above the relative high minimum wages in the region of General Santos.The outgrowers (not a full-time task) earn an extra yearly income of € 2,334 above their normal farmer's income of € 1,080.•	Innovation / Transfer of knowledgeThe project has introduced commercial certified shiitake growing in the Philippines.In the Philippines on the islands of Luzon and Mindanao there are small to medium scale shiitake growers. These growers produce only for the local market.The production method is innovative especially the vacuum cooling process. The different certificates also guarantees that the joint venture produces on a high quality level to meet international standards.The organisation of the shiitake growing with a "workshop" and a lot of contracted growers is also new for the country.The Netherlands embassy reported that the department of Agriculture of the Philippines would welcome the introduction of new shiitake production technology.•	Chain effectsThe 100 outgrowers produce the majority of the harvest of the project. Training has been given for growing, harvesting and GlobalGAP to increase the yield and secure the quality of the production.Other local suppliers e.g. twelve sawmills supply 900 tons raw material for the grow bags for the mushrooms.The joint venture wanted to export 90% of the production but the local Philippines market is booming and has become more important. The local consumers have now the opportunity to buy the high quality, healthy and nutritious shiitakes.•	Impact on the sectorThe joint venture cooperates with the Mindanao University.•	EnvironmentThe traditional Chinese grow bag technology creates a minimal impact on the environment. Besides this the different certificates secure a responsible production.•	Position of womenThe joint venture works mainly with women 23 out of 37 jobs. A day-care facility is part of the project.•	Impact on food safetyThe project contributes the food security by producing nutritious healthy shiitake mushrooms to sell on the local and international market. The project aims to establish a company to produce 331,598 tons shiitake the year round to sell on the  Asian market including The Philippines.