ACCC to investigate dairy industry

AUSTRALIA'S COMPETITION WATCHDOG TO INVESTIGATE DAIRY INDUSTRY

* Australian Competition and Consumer Commission inquiry

* Was already looking at specific issues around Murray Goulburn and Fonterra decisions to cut milk prices and claw back difference from farmers

* Full inquiry into industry starts November

* Has powers to obtain information from companies

* Investigating supply agreements and contracts, competition, sharing of risk along supply chain, bargaining and trading practices, effect of world and retail prices on profitability

* Final report to federal government in second half of 2017.