Nine leave co-op board

Nine members of the Dairygold board have resigned in response to shareholder frustration at their performance.

The resignations, which come just days after Dairygold shareholders passed a vote of no confidence in the board, include group chairman Mr Denis Cronin and vice-chairman Mr John Walsh.

Only Mr Terence O'Donnell, who joined the board earlier this year, has decided to remain in his position.

The move marks the latest twist in a tumultuous period for Dairygold, the largest farmer-owned co-op in the State.

The company suffered an 80 per cent drop in pre-tax profits last year and is facing a period of restructuring under newly recruited chief executive Mr Jerry Henchy.

Mr Henchy has said he wants to transform Dairygold from a "sleeping giant" into the Republic's leading and most efficient dairy processor.

His initial proposals for change have been welcomed by shareholders, who approved his motion to update the company's rules and regulations at the group's annual general meeting earlier this week.

Mr Henchy declined to comment on the departure of the nine board members.

A spokesman for the co-op said the group's executive had no comment to make on a matter that was the concern of the board alone.

The resignations will create nine vacancies on the Dairygold board and prompt elections in the six regions covered by the co-op over coming weeks.

The departing board members are eligible to stand for re-election but their intentions in this regard are as yet unclear.

The new board must be elected from within Dairygold's "outer committee", which comprises 209 farmer shareholders.

The group as a whole has some 8,000 shareholders.

The existing board will continue its functions on an interim basis until the election process has been completed.

As well as Mr Cronin and Mr Walsh, the resigning members are: Mr William Blake, Mr Vincent Buckley, Mr Cornelius Hallahan, Mr William Hickey, Mr Patrick Kelleher, Mr David O'Keefe and Mr Terence O'Donnell.

Dairygold's pre-tax profits fell 80 per cent last year to €2.17 million. This figure would have become a loss if an exceptional €6.14 million gain from the sale of IAWS shares had not been included.