Earlier this month Ornua postponed its monthly board meeting stating that the directors are currently considering certain governance matters at board level. At the time it also stated that it was “the remit of the directors of Ornua to act in the best interests of the co-op, in turn protecting the interests of Irish farmers”. Unsurprisingly, this statement raised eyebrows and has led many farmers to question what really is going on at board level in Ornua.

Formerly the Irish Dairy Board, Ornua was established by the Dairy Produce Marketing Act 1961, and replaced the earlier Butter Marketing Committee. It was created to centralise the overseas marketing of Irish dairy products to achieve economies of scale and greater brand recognition. Ornua markets around half of Ireland’s dairy exports today and it is owned by the member co-ops and ultimately, farmers.

Board

  • Aaron Forde –chair & CEO Aurivo
  • Pat Sheahan – vice chair & CEO North Cork
  • Denis Cregan, independent non-executive director
  • Jim Bergin- CEO Glanbia Ireland
  • Martin Keane, chairman Glanbia
  • Jim Woulfe, CEO Dairygold
  • John O’Gorman, chairman, Dairygold
  • Jason Hawkins, CEO Carbery
  • Peter Fleming, chairman Barryroe
  • Conor Ryan, CEO Arrabawn
  • John Daly, CEO Tipperary
  • Michael Hanley, CEO Lakeland
  • Tom Phelan, chairman Aurivo
  • Pat McCormack, ICMSA
  • Jim Russell, ICOS
  • Tom Phelan, IFA

    • Governance at Ornua

    Ornua’s board consists entirely of non-executive directors. The board members, in general, represent supplier members to the co-op and farming organisations. The number of seats held by a co-op member is determined by the level of trading with the co-op. Both Glanbia and Dairygold hold two seats each reflecting their trading levels with Ornua. Since the foundation of the organisation, IFA, ICOS, and ICMSA have held a right of nomination to the Ornua board and currently each hold a seat.

    There is one independent non-executive Director, Denis Cregan who was appointed in 2015 and is the first Independent non-executive director of Ornua. The board holds a meeting each month.

    Aaron Forde was reappointed as chair of the board in June this year. He was first elected as Ornua chair in 2013 and has served as a member of the board since 2004. The chairman and vice-chairman are elected annually by the board. Nominees for chair are proposed and seconded and they are then listed on a nominee ballot and a vote is held to elect a chair. All board members are eligible for election.

    Pat Sheahan was elected vice chair in June this year. Board members are appointed or elected to serve for one or more terms of four years each. There is no restriction on re- appointment. The board itself has a number of key responsibilities, including agreeing the overall strategy and investment policy, approving major capital expenditures, and providing an essential challenge function to the CEO and senior management.

    Anne Randles was appointed secretary in 2007. And while the secretary does not sit on the board, she plays a primary role in recommending the corporate governance policies and practices to the chairman and the CEO for board consideration.