Westland Milk Products is expected to give shareholders the first update on a strategic review before Christmas.
Last month, board chairman Pete Morrison said the co-operative had begun implementing a new strategy focused on more segregated, higher-value-added products.
The board appointed Macqu-arie Capital and DG Advisory to consider potential capital and ownership options that would create a more sustainable capital structure and support a higher potential payout.
The review options would include introducing a cornerstone investor, a merger, or divestment of the co-operative. Shareholders would vote on any proposals.
Westland's payout had been lower than its competitors for several years and the board was determined to address the situation for shareholders, Mr Morrison said.
Rabobank's latest Agribusiness Monthly report said mild winter conditions had continued across most regions in New Zealand, helping ramp up low-volume winter milk collections by 11% YOY for June 2018.
Niwa forecasted mostly favourable weather in key dairy regions for the next three months, as calving continued, a crucial period for setting the production tone for the rest of the season.
Elsewhere, weather risks were escalating and starting to impact milk production and feed costs in key exporting regions.
Hot and dry conditions were impacting feed availability in the European Union. Continuing severe drought in the southwest of the United States had slowed production in some areas while Argentinian dairy producers were feeling the bite of increased input costs on margins.
Global commodity prices were generally weaker in July. Trade tensions continued to weigh on market sentiment while several key import markets had sufficient short-term inventory cover. Combined, that had muted demand for dairy and softened commodity prices.