Speaking during the association's annual meeting yesterday in Dunedin, Mr Falconer said the introduction of outside capital would boost the whole industry.
"It is an industry which is poised to do a lot of exciting initiatives around research and development which will improve productivity and also which will extend to marketing efforts," he said in an interview.
Shareholders in Silver Fern Farms last week voted to form a partnership with PGG Wrightson.
The $220 million investment by the rural servicing company will be used to retire debt, roll out new technology and develop markets.
Mr Falconer believed the meat industry had reached a turning point with four strong companies and prospects for them to grow.
He expected greater co-operation in research and development.
The conference attracted about 100 people but there was no public discussion about the at times acrimonious dispute over ownership and on-again off-again merger between the two co-operatives, Alliance Group and Silver Fern Farms.
Some at the meeting described the merger as a disaster for farmer ownership and a bail out; others thought it brave and an astute business transaction.
Christine Pitt, Meat and Livestock Australia's innovation manager, told the conference that while the two countries were competing exporters of meat, she felt they should co-operate in technology development.
Dunedin-based Scott Automation was developing robots in collaboration with several Australian meat processors and she showed examples of some of the 45 automation programmes being trialled and installed in Australian sheep and beef plants.
Both countries were supplying global markets but Dr Pitt said there was only so much expertise and capital available.
"Not all the smart people work for you."
MLA has a budget of nearly $NZ190 million for all its activities including research and development, some of which it jointly funded with individual companies.
Increasingly, MLA technicians were attending trade fairs other than those for the meat industry to look for technology and ideas and recently started working with CT scanning developers.
Affco chief executive Stuart Weston said New Zealand meat company executives were receptive to co-operating with Australia.
"It's a bit premature to say `sign us up', but you guys are well ahead and we've got to get our act together."
