A nationwide telephone survey of 800 red meat sector farmers was conducted by Cinta Research, on behalf of MIE.
The survey confirmed there was ''widespread'' support for a co-operative model, Mr McCarthy said.
More than three-quarters of farmers surveyed believed a Fonterra-type co-operative ''would or could'' work for New Zealand's red meat industry.
The survey also found over-capacity was the most urgent challenge facing the industry, costing farmers ''dearly''.
Analysis continued on how much could be saved from supply chain efficiencies, but this appeared to be about $400 million to $450 million, he said.
MIE, which was formed last year to push for reform in the industry, received funding from Beef and Lamb New Zealand for its business plan.
The project included MIE contracting independent consulting firms to research improved procurement models and flow-on effects on industry profitability, along with communicating those findings to the sector.
While completion of the work was ''a month or two away yet'', the preliminary results were revealing and showed solid support for reform, Mr McCarthy said.
Farmers were more open than originally thought to the notion of committed supply as a means of underpinning industry restructuring.
Almost half (48%) would sign a contract for a set time period for supply (one to five years).
A further 20% were ''open to the idea'', 19% did not know and 13% said they would not sign such a contract.
There was a lack of certainty and trust among farmers about how contracts, discounts and premiums operated, he said.
More than three-quarters of farmers (86%) would, or might, support restructuring of the industry.
A total of 90% would like to see more of the supply chain controlled by New Zealand farmers rather than potentially losing control to foreign corporate ownership.
In the Meat Industry Association's recent annual report, chairman Bill Falconer and chief executive Tim Ritchie said in the association's view, much of the debate about the future of the industry tended to focus on structure as a ''silver bullet'' to reduce the impact of the uncertain profitability of the sector.
However, that overlooked that there were many meat-processing companies, two of which were co-operatives (Alliance Group and Silver Fern Farms) and the remainder privately owned.
They all pursued different marketing strategies and business models and that diversity and flexibility was a strength, they said.
