The co-operative will consult its farmer shareholders in November to seek approval for transferring its core database to the industry body Dairy NZ.
LIC developed the database of herd testing and mating records for the country's dairy cows in the 1980s, and retained it when the cooperative moved to a more commercial business model.
An independent review recommended transferring the system to an industry good body, which is Dairy NZ.
Negotiations reached a deadlock last year because DairyNZ wanted to add other breeding information which LIC regards as its intellectual property.
The dispute was resolved in May this year.
LIC chair Murray King says it's been a long process and the database transfer will also require legislative changes which will take effect next year.