Federated Farmers is calling for a milk price war between major supermarket chains.
Boutique supermarket Nosh Food Market cut its retail price of milk to $1 per litre at its six upper North Island stores, on Tuesday.
Nosh chief executive Clinton Beuvink says supermarkets and suppliers are making too much profit on milk and should sell it more cheaply.
Federated Farmers says a Pak'nSave in Hamilton has also lowered its price to the equivalent of $1 per litre.
Dairy chair Willy Leferink says he hopes that leads to a milk price war between Foodstuffs and Progressive Enterprises, the two largest supermarket chains.
He says that would be more effective in lowering the cost of milk for New Zealand consumers than the Government's milk price inquiry.
