Chairman of Warrnambool Cheese and Butter Factory Company Holdings, David Karpin, has resigned from the board, and will be replaced as chairman by current director Frank Davis.
It is one of a number of changes to the WCB board announced this morning, which will take effect immediately.
The shake up follows last month's resignation of Neil Kearney from the post of managing director, after a major backlash from producers against a plan from WCB's to cut milk prices.
The backlash forced the reinstatement of the previous milk prices, but also resulted in a forecast loss of $12 million for the company this year.
Now the impact has been felt at board level, with Craig Drake to remain on the board but step down as deputy chairman, a role which will be filled by current supplier director Terry Richardson.
Supplier directors Desmond McKinnon and John Renyard have also resigned from the board.
Bruce Vallance, currently an associate director, will become a supplier director.
According to a statement issued by WCB this morning, the board now consists of: Frank Davis, chairman, independent non-executive director; Terry Richardson, deputy chairman, supplier non-executive director; Paul Bourke, independent non-executive director; Craig Drake, supplier non-executive director; John McLean, executive director; Bruce Morley, independent non-executive director; Bruce Vallance, supplier non-executive director; and Tony Reichelt, remains as associate director.
"These changes are intended to continue a process of board renewal that will serve the best interests of shareholders and suppliers," Mr Davis said.
He said the company would be seeking to fill vacancies as soon as practicable.
In other developments, Mr Davis said the WCB and National Foods joint venture was still on track to acquire a 50pc interest in Australian Cheese Company and related matters.
However, he said the global economic crisis has had a dramatic impact on the Australian dairy industry.
Mr Davis also announced that the WCB and FrieslandCampina 50:50 joint venture, named Great Ocean Ingredients, which was formed for the purpose of constructing a new $75 million plant at WCB’s site at Allansford to produce nutritional and functional ingredients for the global infant formula market, has successfully completed the commissioning phase of the project.
Sign up for our newsletter to stay up to date.