you are correct. keeping everything separate will be best for your friendship and your future business. This is your brand your business and possibly your future, not time for a partner unless financially needed. Trick will be to put the spin on this to make it worthwhile for the butcher. What's in it for him. The ability to offer a new product with zero work, zero learning curve, zero involvement or equipment purchasing on his end.
Keeping business separate will also allow you to market your brand to other purveyors/stores/deli's to get your product on their shelf or in their kitchen.
Just please stay out of the Hudson Valley, we too make bacon and I have no time to deal with a new competitor. Good luck.