Kerry Group chief executive Stan McCarthy has stepped down from his role as head of Kerry Co-op, the company's biggest shareholder.

Kerry Co-op owns 13.7 per cent of the group.

While no official reason has been given for Mr McCarthy’s resignation it coincides with an ongoing row over the prices paid to dairy farmers for milk. Farmers have complained that Kerry has rowed back on an agreement to compensate them for lower prices via a “thirteenth payment.”

“Because of its historic relationship, Kerry Group has continued to provide support services to Kerry Co-op, including the services of Stan McCarthy. He has now stepped down but Kerry will continue to provide executive support to the cooperative. Our commitment to farmers and to shareholders is unchanged by this decision,” a spokesman said.

“We have ongoing discussions with regard to milk price payments at what is a very difficult time for dairy markets. Kerry Group has a contract which has been signed by milk suppliers and agreed by the board of Kerry Co-Operative and its sub-committees. That contact allows for a process of mediation and that is ongoing at the moment” he added.

Kerry was the first Irish cooperative to go public in 1986.The group, which has a market cap in excess of €13 billion, is quoted on the Dublin and London stock-exchanges and has some 30,000 shareholders.

Mr McCarthy has been with Kerry since 1999 and was appointed its chief executive in January 2008.

He received a total remuneration package of $4.6 million (€4m) in 2015, up from $4.4 million (€3.9m) a year earlier. The group’s remuneration committee has recommended a 9 per cent rise in Mr McCarthy’s salary this year.