Donal Tobin is understood to have resigned as chairman of Lisavaird co-op, and of Carbery. The Irish Farmers Journal understands that Tobin stood down at a board meeting this afternoon.

His resignation is understood to be linked to the controversial leasing-in of milk from Lee Strand, in one of the final acts of the milk quota era.

The lease of milk quota from one co-op to another co-op is perfectly allowable, but there was considerable anger over the distribution of the milk. As reported in the Irish Farmers Journal this week, the milk pool was shared out among a small number farmers. Chairman Donal Tobin was one of those. It seems his position became untenable.

Following a meeting of disgruntled Lisavaird members on Tuesday night, an emergency board meeting was called for Thursday night. Events have accelerated since then, leading to this afternoon's developments.

Tobin became Lisavaird chairman in 2008, and acceded to the chair of Carbery in August 2013. Carbery, jointly owned by four West Cork co-ops, employs over 500 people and had a turnover of €318m in 2013. In addition to chairing Lisavaird and Carbery, Tobin also chairs both Coolmore Foods, based in Bandon and recently purchased by Lisavaird, and also Glen Aine Foods, a processed meats company in Limerick, also a Lisavaird possession. It is expected that Tobin will now vacate these positions as well.