Organic vegetable transplants are produced in Israel in ‘Speedling’ trays. The commercial growth medium consists of a mixture of peat moss and vermiculite (PV). Commercially grown transplants frequently exhibit non-uniform quality. Growers experience unacceptable mortality rates during the first weeks after transplanting. Substituting part of the peat moss with compost, based on the coarse fraction of cattle manure (CPV), caused a significant improvement of the growth rate of the seedlings in the nursery. Improved parameters included fresh and dry weight of the seedlings. Possible reasons for improved growth are discussed. After transplanting to the field, CPV-grown cabbage transplants exhibited lower mortality rates caused byPythium ciphcinidermatumthan PV- transplants. The yield of CPV-transplants at harvest weighed more than that of the PV-transplants although non-infested control plants yielded similarly to those grown in compost-containing media. The effect on processing tomato transplants was different. Although all plants survived, the superiority of the CPV-transplants manifested itself at harvest in terms of higher yields. Compost suppressed infestation of sweet basil plants by inoculum ofFusarium oxisporumf.basilici.Under identical condition,Fusariumcaused severe growth inhibition and even death of peat-grown plants.