By Philippa Stevenson
Kiwi Dairies chairman John Young yesterday relinquished his Dairy Board directorship in a move described as a bolt out of the blue.
In a departure from convention, Mr Young announced his retirement in a statement released by Kiwi - a function usually carried out by the board.
He also said
the proposed mega co-op would have "a small head office in Auckland," which industry spokespeople denied had been decided or even addressed.
Board chairman Graham Fraser said he regretted Mr Young's decision to stand aside, but respected his wish.
Mr Young, aged 62, said he was approaching the twilight of his involvement in industry governance and his decision provided an opportunity for a younger person to take up the challenge.
A possible contender is former Northland chairman Greg Gent, who became a Kiwi director after the two companies merged last year.
He is in France on an education course provided by Kiwi.
Mr Young said his successor would be chosen by Kiwi this week.
Mr Young, credited with being the first to match - if not outwit - the tough-talking industry giant, New Zealand Dairy Group, has been a company Dairy Board representative since 1998.
Yesterday, he said he was not contemplating standing down as chairman of Kiwi.
"If the concept of a single integrated manufacturing and marketing company comes to fruition we must re-engineer the entire industry to ensure the mega co-op provides substantial benefit to dairy farmers."