A group of 50 farmers nationwide will be invited to trial a prototype and provide feedback.
The aim is to make the tool available for all farmers, with the first release expected by the end of the year.
The two farmer-owned Co-ops are looking to work with others in the industry to maximise what could be delivered in the new farm performance system.
"Farmers have told us they want simplicity, they want one place to see all their records and information, and they want it in real time," says LIC CEO Wayne McNee."
Today's farmers have so much information to try to consider, and an ever-increasing range of technology on offer," says McNee, in a statement.
"Both can add huge value to a farming business, to support more informed decision making and improved profitability, but accessing and using the information to make decisions can be difficult."
Fonterra Chief Operating Officer Farm Source Miles Hurrell says the tool responds to what farmers want - one place to access all the data sources they use, to improve on-farm performance.
"Currently farmers have lots of data sources, all developed in isolation," says Hurrell. "Farmers have asked for a way to bring all those data sources together in one place. This would reduce the need for double entry of data by farmers.
"It will also give them the ability to benchmark their farm against others using aggregated data, leading to more productivity and profitability."
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