THE country's largest fair trade organisation, based in the North-East, is to raise more than £3m with a share issue.

Traidcraft, which has its head office in Gateshead, needs to raise the capital for expansion and changes to its governance. It will issue up to 3,250,000 shares - it already has about 3,000 shareholders - at £1 each on Tuesday, October 1. Traidcraft was formed in 1979 with the intention of giving a better deal and sustainable livelihoods to Third World producers who are often forced to sell their products at below cost price.

The company sells food and craft products from 100 producer groups - such as co-operatives - in Africa, Asia and Latin America and has seen its revenues rise by 40 per cent in the past two years, reflecting growing concern about the exploitation of developing nations.

Last year's turnover was £10.4m and the company made a profit of £119,000.

Traidcraft chief executive Paul Chandler said: "We are a company with a difference. From our inception in 1979 we have sought to give poor producers a chance to trade fairly and earn a living with dignity.''

The firm's international director, Andy Redfearn, said: "You'll find that fairly traded products are competitively priced and cost about the same as other products of similar quality.

"We are about creating a better deal for the producer and the customer. The customer gets a great product and knows that the producer has got a fair deal."

Shareholders could expect a "modest financial return but a much bigger social return from their investment", he said. "We are keen to be an example to other businesses and show that you can run your business ethically and make a profit."

The company employs about 130 people in this country, mostly at its Gateshead office, but tens of thousands of people in the Third World benefit from its policies.

The company plans to issue a prospectus which will be available by calling (0800) 9759020 or by visiting its website at www.traidcraft.co.uk

The share offer will be open for two months.