Silver Fern Farms shareholders have voted in favour of the meat co-operative forming a partnership with rural servicing company PGG Wrightson.
The constitution-changing resolution required 75% support for the project to proceed and achieved 75.62%. The vote attracted 83.3% of those eligible to vote.
More than 100 shareholders attended yesterday's formal vote and all voted in favour of the new entity.
An emotional Silver Fern Farm (SFF) chairman Eoin Garden thanked shareholders and proclaimed they were showing leadership that the rest of the industry could follow.
The deal will see PGG Wrightson (PGG-W) invest $220 million for a 50% stake in SFF with the money used to retire debt, install new technology and develop a consumer-lead marketing strategy.
Directors and management were not convinced they had done enough to get the required votes.
"It was close,'' said Mr Garden.
Under the agreement, PGG-W will procure stock to SFF's requirements but also assist farmers who wish to change the way the produce stock through advice on genetics, management and pasture.
SFF chief executive Keith Cooper told shareholders at the meeting ahead of the vote yesterday that the money would reduce from three to four years the time taken to introduce new procurement options, marketing strategies, product ranges and introducing x-ray grading and robotics.
The new entity will come into force on October 1.