"We want the right livestock and, if we can add value to it, we will pay farmers better for it. But a procurement war is when you go out just to attract volume and then say 'what the hell do we do with it'? We don't want to be in that space."
Shanghai Maling not only offers cash, it also unlocks a massive distribution chain throughout China. The largest mainstream processor of pork also has control of a fully integrated chain of 900 supermarkets and butchery shops.
Coupled with the 8000 stores, Bright Group (a subsidiary of Shanghai Maling) owns and a further 60,000 stores that group supplies too, SFF will potentially have access to 70,000 stores in total. It's mind-boggling, as is the protein demand for sheep meat and beef in China at present. Total consumption is growing at 7per cent a year, Mr Hewett says, while pork has slowed to just 1per cent.
"So as the middle class grows, they are looking for alternative protein sources and looking for high-quality protein imported from places where they have a high degree of reassurance around food safety."
New Zealand occupies a "very special place" in China, being the first OECD country to sign a free-trade agreement, he says.
"They love the clean, green image and love the idea that their food is safe. In terms of protein hierarchy, New Zealand protein occupies a very special place -- much like champagne."
But amid the clutter of retail channels companies need to have clear brand strategies to stand out.
"And that's the difference with our brand strategy at Silver Fern Farms. There isn't one that comes close to it."
But building into that market has been a "long burn" for all involved.
"A processor that says they have a China strategy is deluded. It's about having a marketing strategy. There are well over 100 towns in China that have a population of millions."
New Zealand can't enter into the entire market and shouldn't have aspirations to, he says.
"A lot of low-value cuts are sold through distributors and that's going to continue, but what we want to do is continue to drive our value creation strategy and that requires very clear brand strategies around the market and doing that well. Having the right partner also helps."
That partner and SFF itself are not looking to change anything in day-to-day business here in New Zealand, should the Chinese offer be accepted, he said.
"But ultimately we regularly review where our livestock flows are coming from and what the long-term future is and we will make decisions accordingly. And if that means building new plant, reconfiguring or closing plants we will make those decisions."
In reality though, the Chinese investment would help SFF add more value to products and that was nothing short of positive, he said.
Over the years SFF has been criticised for having older processing plants and wasted capacity -- something Mr Hewett disputes.
"The reality is that between our depreciation budget and research and marketing spend we are spending $50 million a year on our plants.
"To say they are old plants is not true. The building outside might be old but the kit inside is not. It's a red herring."
But there had undoubtedly been capital budget restraints meaning some projects that SFF wanted to do couldn't be done.
"Now we've got equity behind us we can take the handbrake off."
