Parliament's Commerce Select Committee has announced its terms of reference for an inquiry into the price of milk.
The select committee will look into the price of milk from the farm gate all the way to the retailer and consider the influence of retailers and wholesalers' practices on the price.
It will also investigate the impact of international prices and discuss whether current regulations can be improved to ensure competitive pricing.
The select committee says the inquiry will not overlap with work already being done by officials on raw milk pricing.
Submissions for the inquiry close on Tuesday, 13 September.
Foodstuffs expects the inquiry won't find anything different from a recent investigation by the Commerce Commission.
Earlier this month, the commission decided it would not hold an inquiry into the price of milk after it found there was sufficient competition in the market at a retail level.
Foodstuffs, which runs New World, Pak'nSave and Four Square, expects a similar conclusion will be reached by the Commerce Select Committee.
It says it will co-operate in the committee process.
Independent processors' views
Open Country, Synlait and Miraka say they are happy with the broad terms of reference for the inquiry.
The independent processors want the regulations changed and also want Fonterra to reveal its price formula.
Spokesperson Peter Fraser says that while the number of independent processors has grown since Fonterra was formed almost 10 years ago, competition has not increased in the domestic milk market.
He says the inquiry appears to be comprehensive.
The director of independent milk processor Klondyke Fresh, Graeme Brown, says processors who buy some of their milk from Fonterra don't know how to price the milk appropriately.
The director of independent milk processor Klondyke Fresh, Graeme Brown, says processors who buy some of their milk from Fonterra don't know how to price the milk appropriately.
He says transparency is the key thing from both processors' and consumers' points of views.
He says New Zealanders pay far too much for milk, comparing a litre of milk with the price of a litre of fuel, which he says is far more capital intensive.
Fonterra Shareholders Council chairman Simon Couper says it looks to be a comprehensive inquiry.
He says it covers the full range and will give a fair and transparent reflection of the process from the farm gate to the retail end.
The council represents 10,500 dairy farmers.
