Chief executive resigns as new co-operative fights for survival.

The chief executive of New Zealand Organic Dairy Farmers Co-Operative, Patrick Geals has resigned over the issue of outside funding for the struggling organisation.

Geals has moved after failing to get board support for external fund raising, with the board voting to remain farmer owned.

After promising its 27 suppliers a $7 payout, 0.95c above Fonterra's, only $3.03 has so far been delivered, and the co-op admits it is struggling with cash flow problems.

Board members and shareholder/suppliers refuse to make public comment at this stage, although the Waikato Times has reported chairman Malcolm Campbell saying he is confident of having a positive report to make next week.