Westland Milk Products says its financial results, while strong, do not meet the company's strategic goal of providing ''superior'' returns to shareholders.
The Hokitika-based co-operative has reported record total group revenue of $830 million for the 2013-14 year, up 46% on the previous year.
Other financial results, including profit, were not available until after the annual report had been sent to shareholders later this month, a spokesman said.
The increase in revenue was driven by increased milk volumes, up 21% at 753 million litres.
The co-operative confirmed a payout to shareholders of $7.57kg/ms.
Last week, Fonterra confirmed a final cash payout of $8.50 for the 2013-14 season.
While Westland's was an ''above average'' payout, the board and management acknowledged it was not as industry competitive as it had been in prior seasons, chief executive Rod Quin said.
The payout gap was driven by the price difference between whole milk powder, which was a ''star performer'' for the industry in the year, and casein and skim milk powder - Westland's main volume products - which suffered from relatively low international prices.
Westland had a ''well-developed'' strategy in place to move away from commodity ingredients and provide competitive and sustainable returns, Mr Quin said.
That included commissioning of a nutritional products facility at Hokitika in 2012 and a $102 million nutritionals dryer, also at Hokitika, to be commissioned in August next year.
The board has also approved a $40 million ultra-high temperature (UHT) milk processing plant for its Rolleston site.
Its plan to expand into the UHT milk market, its first retail milk product, was largely aimed at China.
Comparatively little of China's milk was delivered fresh through refrigerated outlets as it was in New Zealand. Most milk was consumed as a UHT product that did not need refrigeration, and Westland saw that market continuing to expand.
In August, Westland cut its forecast payout for the 2014-15 season by 60c, down to a $5.40-$5.80 range before retentions. Last week, Fonterra dropped its forecast milk price by 70c to $5.30.
Meanwhile, Morrinsville-based co-operative Tatua has announced an all-time record payout by a New Zealand milk processor of $9kg/ms for the 2013-14 season.
Tatua's in-season forecast for 2014-15 stood at $6.50kg/ms. According to its website, it has 109 shareholder farmers.
Mid Canterbury-based Synlait Milk has received approval to manufacture retail-ready infant formula for export to China.
The registration was a ''major milestone'' for the business, managing director Dr John Penno said.
It added to the company's existing registration as a manufacturer of general dairy products and infant formula base powders for export to China which was granted in May last year.
