by Richard Gleeson
Northern News Services

NNSL (May 28/97) - The man supplying cows and milk to Tuaro Dairy says the business could work, but only with the proper management.

Alberta-based farmer and businessman Neil Meyers, who has been supplying cows and milk to Tuaro, said he could pull Tuaro out of the red with a little co-operation from the city.

Meyers said his agreement with the dairy includes a clause that allows him to take over the operation if Tuaro defaults on their obligations to him.

"In essence, in the event of default, I get the keys and get to operate the production facilities so I don't have good milk going down the drain," said Meyers.

"I want Tuaro to voluntarily default so we can start operating the property as we think it should."

To make the move viable for him, new terms would have to be worked out with Tuaro's creditors, among them the city.

"I would look at the profits and show them what profits are available short- and long-term, and basically say 'I can afford to pay you this.'"

Meyers said he has had discussions with at least one alderman and senior city administrator Doug Lagore.

"There is a certain number of people co-operating with Tuaro because they feel if it folds the business is toast in Yellowknife," he said.

Meyers said Tuaro has a host of problems, many of which date back to its predecessor, the failed Agriborealis Dairy.

The dairy cannot afford the steep monthly payment plan it has with the city, he said, pointing to the fact that they were $49,000 behind on payments early last week. Since then the dairy has made at least one payment of $6,750 on the outstanding debt.

Meyers said both Tuaro and the city were remiss in not properly assessing whether the dairy could handle the payment schedule.

Lack of organization is also hindering its profitability, he said.

The farmyard was covered in manure when he arrived, and the site improperly planned from the beginning.

(Since then, 20 truckloads of the manure were hauled to the city dump. At city council Monday, public works manager Neil Jamieson said no tipping fees were charged.)

"The site was never properly planned," said Meyers. "All the cow traffic inside is absolutely impractical. The milking system needs some changes, there's a composter on the side of the barn that's totally impractical, the house is falling apart -- the physical facility is a detriment to the operation."

Meyers said he anticipates a meeting between Tuaro, the city and creditors later this week to discuss the future of the dairy.