It seems that there is no near breather for the residents of New Zealand who apparently have been struggling with hike in milk prices. It came to light in March, when complaints were launched against the rise of milk prices, thereby demanding for a full-fledge probe in the matter to rein in price hike.

Owing to the pressure, the Commerce Commission examined the entire issue under the rules lined up in Part 4 of the Commerce Act. As per Part 4 of the Commerce Act, price control is imposed in case "little or no competition" exists or is "likely to substantially increase" in a market.

After quizzing 32 participants in the four levels of the domestic milk market, farm gate, factory gate, wholesale and retail supplies, the commission came to conclusion that competition existed at the retail level between the two main supermarket chains, and for wholesale milk, Fonterra and Goodman Fielder were head to head.

Even though there was little competition at the farm gate supply level, the commission was not keen on imposing price control measures.

After getting thumbs down from the commission for instilling price control measures, Manaia Health PHO Chief Executive Chris Farrelly, who instigated for the inquiry, called on supermarkets, Fonterra, Goodman Fielder and other companies to lower down the local milk prices.