9 Feb 2012

Milk inquiry to continue

12:08 pm on 9 February 2012

Parliament's Commerce Select Committee has decided its inquiry into the price of milk will continue.

The select committee has been looking into the price of milk from the farm gate to the retailer and is considering the influence of retailers and wholesalers' practices on the price.

After the general election last year, Labour's Lianne Dalziel was replaced with National's Rotorua MP Todd McClay to head the Commerce Select Committee.

At its first meeting of the year, the new select committee decided it will re-adopt the inquiry. Hearing of submissions finished in September.

Mr McClay said it has been running for more than a year and it's important to now draw it to a conclusion.

The inquiry is fiercely opposed by farmers and Fonterra, who say the domestic price of milk correctly reflects international commodity prices.

The inquiry is unrelated to two other government reviews involving the raw milk regulations and a review of the legislation which ensures Fonterra doesn't monopolise the domestic dairy market.