Parliament's commerce committee has decided to re-adopt an inquiry into the price of milk that will stretch from the farm gate to the retailer.

Last year the committee, then chaired by Lianne Dalziel, launched a broad-based inquiry with an overarching question of whether people were paying too much for milk and whether the market was operating effectively at all levels.

According to Statistics New Zealand, the average price of a standard two litres of milk in December was $3.67 - up 1.7 per cent on December the previous year but 15.4 per cent higher than in the same month in 2009.

The committee is now chaired by National Party MP Todd McClay..

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