By Geoff Senescall
A power struggle between the New Zealand dairy industry head and the chairman of Kiwi Cooperative Dairies has ended with both men being forced to step down from the committee setting up the new mega co-op.
Taking the place of John Storey (Dairy Board chairman) and John Young (Kiwi
chairman) are their deputies, Graham Fraser and Paul Bailey.
According to dairy industry sources, no progress was being made on the structure for the mega co-op because of the infighting between the two chairmen. One of the issues was over who would chair the committee, which also includes three Dairy Group representatives, two from Kiwi and one from Northland.
The issue came to a head after several days of intense meetings behind closed doors.
Dairy Group director Graham Calvert will take leave of absence from his post to head the board.
In the wake of the resignations, the chairman of the New Zealand Dairy Group, Doug Leeder - who declined to join the committee at its inception, said the move was a positive one.
But there were still several hurdles before the mega co-op became a reality, he said.
"We still have to get through legislation, we have to get through Commerce Commission and we have to get through a merger with Kiwi, Dairy Group and Northland.
"At best you are talking about a shareholder vote at the end of October if everything else goes fine."
