Call for watchdog to probe milk price war

Federal Labor has called for the corporate watchdog to examine an unexpected cut to milk prices by Murray Goulburn.

Deputy Prime Minister Barnaby Joyce has pledged to do more to help Victorian farmers impacted by the move.

Lobby group Farmer Power wants an Australian Securities and Investments Commission review after Murray Goulburn and Fonterra slashed their prices.

Mr Joyce on Tuesday visited the Queensland seat of Petrie to announce $1.6 million in research grant funding for agricultural and veterinary chemical products.

He had previously suggested farmers take their concerns to the Australian Competition and Consumer Commission, but acknowledged there was more to be done in the "hard situation".

Mr Joyce said he sympathises with the farmers.

"I understand their hurt. I'm going to try and get down there. We're going to try and see what further we can do," he said.

Labor's agriculture spokesman Joel Fitzgibbon said the minister has been acting too slowly.

"ASIC needs to be in there asking those questions and whatever the outcome of those inquiries, it might very well be helpful to producers," he told ABC TV.

He's asked the agriculture department for a briefing on the matter.