Search for new faces on Dairygold’s board of management may fail

CO-OP rules experts were predicting this week that many of the nine Dairygold Board directors who stepped down after a vote of no-confidence by 792 shareholders will return to their positions.

Nomination papers for election of a new board will shortly be posted to the 209 member general or "outer" committee the same committee which originally voted many of the nine resigned directors into their positions.

A new board with few new faces would be a major disappointment for those who supported last week's vote of no confidence.

The 792 to 649 verdict reflected dissatisfaction at the way the group was being run, and feelings that the board were too conservative.

Many of the 792 would like to see a younger, more dynamic board of management drawn from the co-op's up and coming generation of talented farmers.

Dairygold Chief Executive Jerry Henchy has hinted said the co-op in general must become open to new ways of doing business.

He said, "The Enterprise Ireland/Prospectus report has pointed sharply to the urgent need for rationalisation in the Irish dairy sector as a whole. There is real urgency for Ireland's dairy processors to find constructive and profitable ways and means to work together, to improve efficiencies and reduce the cost of processing the Irish milk pool so as to maximise its value to the farmer. In conjunction with the Irish Dairy Board, we will aggressively seek better returns from the market."

He also pointed to the importance of good relations with other processors.

"My priority is to address Dairygold specific issues as my first priority but in doing so to be open and to invite other processors to consider ways where it makes sense to work together to build a broad framework for improved efficiency."

"Dairygold will support and be a willing partner in industry initiatives to capture the maximum value possible out of the Irish milk pool and to build an excellent consumer foods, food ingredients and sales capability, to deliver sustainable value to the farmer."

He also hinted that the Board of Management may have to make radical decisions in agri-trading, a controversial area following the recent closure of 23 stores.

"In agri-trading we will provide farmers with key services and provisions in the most cost-efficient way2.

"This division is about servicing members and farmers in our catchment area. If someone else can provide a better value and more efficient service which is good for everyone, we will be open to change in that regard, " said Mr Henchy.