Yes, forest compost would be great.
Another thought for you...
I've also used split logs, in whatever size is convenient to carry, staggered downhill through my compost to help hold it in place until new plantings are established. By the time the logs start to break down your plants should be able to go it alone. Maybe you could also try a few deep-rooted perennials here and there to further help with the erosion issue.
