Political support for an investigation into the retail dairy price is growing, as both the Green and Maori Parties join the fray.

Green MP Sue Kedgley is calling openly for a commerce Commission investigation into the retail price of dairy products, after MAF’s domestic price report last month.

Sue Kedgley says the report amounted to a veritable “whitewash” of the situation, and failed to address the central issue in the market, which is a lack of competition.

"We are just wanting a commerce commission investigation into the Dairy wholesale and retail market and to investigate why the price of milk is so high.

"We aren’t concerned at the price the farmers are getting, we see farmers say they receive less than 30% of the milk, what we are wondering is what makes up the remaining 70% of the retail price."

Ms Kedgley says it’s time the commerce commission completed an investigation into the breakdown of the consumer milk price.

"We are also concerned at the lack of competition in the sector because we’ve got two major players, Fonterra and Goodman Fielder.

"Then of course Goodman Fielder is required to purchase all of its milk from its competitor Fonterra, and we are worried that limits competition in the wholesale market in New Zealand.

"Then we’ve got our supermarket duopoly selling the milk, and this is contributing to the high price."

Ms Kedgley’s sentiments are echoed by a group of smaller dairy processors concerned about Fonterra’s market dominance, although all companies have declined to go public.

The Maori party, though, has openly joined the calls for an investigation, as a review of the Dairy Industry Regulations is set to take place sometime in the next 12 months.

Maori Party MP Te Ururoa Flavell says Fonterra’s Trading Among Farmers plan needs to be checked out by the commerce commission to avoid the risk of anti competitive behaviour.

The Maori Party has said at the very least the Government should establish an independent milk price panel to create more healthy competition.

Agriculture Minister David Carter has said in the past the MAF report satisfied his concerns about DIRA, and it has confirmed the current system is working.

As for Fonterra, the company put out a statement following the report saying it was “on the same page” as the Ministry of Agriculture regarding the industry regulations.

For more on the regulations, head here.