by Richard Gleeson
Northern News Services

NNSL (Oct 03/97) - For Joe Kronstal, the idea of starting a Northern dairy began 15 years ago, at a series of strategic planning sessions hosted by the city.

"It was my view we weren't taking enough of an initiative as private citizens to make ourselves more self reliant," said Kronstal, recalling the meeting.

"It was after those meetings a friend of mine challenged me, asking `What are you prepared to do about it?'"

More prepared than most, as it turned out.

Kronstal has seen hundreds of thousands of gallons of milk go down the drain for lack of a processing license.

Continuing to make a go of it after being hired by the city, he became the focus of public protests of conflict of interest. Hundreds of thousands of shareholders dollars, including $400,000 of his own money, have been spent on the dream.

Forced to choose this spring, Kronstal elected to stick with the dairy and give up a well-paying senior management job with the city.

He still maintains a viable dairy operation can exist in the North.

"I'm doing what I believe in, but it's a hard way to make a living," he said.

Profit, he added, has never been an overriding motive. "What I'm saying is it's as important to see it happen as it is to see myself in an ownership role. Our first prospectus said profitability, though necessary for any business, wasn't the overriding factor."

The overriding factor, said Kronstal, is Northern self-sufficiency.

"I think producing a staple, here in Yellowknife, is good for the community. It provides residents with fresh milk at competitive prices, creates jobs, adds to the diversity of the economy and increases the tax base."

Kronstal noted that in spite of the increased operating costs, a Northern dairy has one big advantage over those in the South -- freedom from supply management.

In Alberta, said Kronstal, a dairy operator would be required to cough up $1.2 million for the right to sell milk from 100 cows.

"Here, that money can be used to capitalize the business," he said.

Kronstal's determination to realize his dream will soon be put to the test again.

The dairy is three months behind in its tax payments and a purchase agreement between new partner Neil Myers and the city has all but caved in.