The Green Party is accusing dairy giant Fonterra of racking up multi-billion dollar profits at the expense of families who can hardly afford to buy milk and cheese.
The call came during the party's three-day annual conference in Auckland.
Co-leader Jeanette Fitzsimons says Fonterra should show it is a good Kiwi company and give something back by selling its produce at a price locals can afford.
On Friday, the co-operative announced their biggest ever pay out to farmer, lifting their average annual gross income to around $900,000.
Fitzsimons says Fonterra can afford to take less profit on the 4% of its product it sells in New Zealand and has proposed that the price of milk sold domestically is capped.
She says the party is not asking Fonterra to sell milk at a loss, but at a reasonable profit rather than an excessive one.
"The way the global food market works is if you can get a higher price overseas then that is the price Kiwis pay."
But the proposal has been flatly refused by Fonterra which says it is already contributing significantly to the domestic market.
"One, we haven't passed on all the increases of mill cost to domestic consumers. Two, Fonterra subsidise the domestic market to the tune of about $50 million or more this year. And third, Fonterra accepts lower margins in New Zealand than it does in any other international market," says Fonterra brands managing director Peter McClure.
McClure says farmers' incomes are indeed high at the moment, but these dollars flow right throughout New Zealand.
Fonterra says it is up to consumers to shop around for the best prices.
Food affordability, which is shaping up to be the party's battleground issue for the election, has also seen the Greens call for a Commerce Commission inquiry into food prices.
The party wants the inquiry to look at the gap between what farmers get and what consumers are paying for dairy products, and whether tougher laws are needed to regulate supermarket operators.
Fitzsimons says the policy is not about regulating food prices but about regulating competition. She says while there may be lots of supermarket brands they are all owned and run by just two companies. She thinks people will be as suspicious of their competition as they are about competition between the five major oil companies.
Fitzsimons says consideration would be given to whether tougher competition laws are needed to manage the duopoly that dominates scene.
Other measures flagged by the party include a food security strategy.
But ONE News political editor Fran Mold believes the Greens are unlikely to get the inquiry they want unless they secure a strong post-election deal with one of the major parties.
To do that, they have to get across the 5% threshold to get into
parliament. This has been in doubt recently but the latest poll
shows the Greens are now at a comfortable 7%.
Green agenda - beyond food
The Greens will also debate its approach to the government's Emissions Trading Scheme (ETS) and how the party will position itself for the election later this year. Both topics are likely to be discussed when delegates go into closed sessions.
Support for the proposed ETS is delicately poised, with the Greens demanding movement on agriculture and a reversal on the delayed introduction of transport if they are to support it. Fitzsimons says negotiations with Labour are going well and she appears confident the Greens will get concessions.
She says when you hold the votes that will determine if the ETS passes or fails the chances of getting major change are quite realistic.
The party is also expected to announce its policy on water quality issues.
Garnering votes
Fitzsimons used the AGM to urge party supporters not to repeat the mistakes of 2005.
She says in 2005 voters who were scared of National under Don Brash thought they had to choose between their heart and their head in keeping him out. She says the result was National still almost made it in and voters were left with an arrangement that saw New Zealand First and United Future with cabinet posts.
She says that must not happen again.
Fitzsimons says deals could be struck between the Greens and the Maori Party when it comes to gathering support this election. She says last election an accommodation was worked out where the Maori Party encouraged their supporters to give their party votes to the Greens.
She says voters in the Maori seats will be able to work it out for themselves and when you look at the numbers a party vote for the Maori Party won't increase its representation.
Ward a no-show
Nelson-based former MP Mike Ward was a no-show at the AGM.
Ward hit the headlines earlier this month after he refused to step aside from the party's list so co-leader Russel Norman could replace MP Nandor Tanczos in parliament.
