An Auckland retailer would like to see more competition in milk processing which he says should result in cheaper prices for consumers.
Nosh Food Market recently reduced the price of milk at its stores to $1 a litre - a price that means it loses money on the product.
Director Clinton Beuvink says he expects a new processing plant would cost about $2 million to build and as a retailer his firm isn't in a position to start it.
However he says his company has been talking to a couple of parties which are capable of doing so.
Mr Beuvink says new milk processors have entered the market in the past, but have either closed because of poor demand from retailers, or have joined with larger businesses.