Shanghai Maling, a food processing and retail giant, will pump $261 million into Silver Fern to take a 50% share in a new company, Silver Fern Farms Ltd.
But South Otago farmer and Silver Fern supplier Howie Gardner said there was nothing to fear from such a deal.
Through his role with Elders Primary Wool, he had worked in a similar situation for 10 years of a co-operative and a corporate structure without issue.
What was significant to him was the unanimous support from the board.
''We need to question the board closely but recognise they are much closer than we are. And that's the crux of it. I agree with the board; this is a potential game changer. The capital was not available on shore.''
Otago Federated Farmers meat and fibre chairman Simon McAtamney, of Clydevale, said he was pleasantly surprised by what was offered.
''Shanghai Maling is putting in a lot more money ... It appears what they are trying to do is form the joint venture company in partnership with the co-operative.''
Mr McAtamney believed the choice of Shanghai Maling would benefit the growth of Silver Fern, particularly in its added value products.
The group had been hindered in the past by its capital structure.
A long-term view needed to be taken of what the investment would achieve and farmers had not been good at seeing into the future.
Being debt free and with a positive cash position would remove a weak link from the industry.
Farmers were short-term thinkers, thinking of the current season's lamb and beef price.
The growth of value-added products needed to be thought of in a 10 to 20-year timeframe, he said.
Silver Fern would struggle to plan that far in advance without the cash from Shanghai Maling.
West Otago shareholder Allan Richardson said farmers needed to focus on the long-term future of the industry.
Farmer shareholders had supported a co-operative for three or four generations and were not about to let go of control.
He regarded the Chinese investment as a launching pad for further acquisitions in the New Zealand meat industry.
Meat Industry Excellence chairman Peter McDonald, of Dipton, said the amount of the cash being offered took him and others by surprise.
He urged farmers and Silver Fern shareholders to read carefully all of the information put in front of them.
MIE's aim was to have farmers in control of their own industry and make changes to benefit those farmers.
''If this deal goes through, others will be making changes to benefit them. Farmers realise with money comes influence. There are no free lunches.''
The board would be made up of 10 directors: five from Shanghai Maling, three farmer representatives and two independent directors.
That left co-operative representatives underrepresented on the board, Mr McDonald said.
