The One Nation leader drummed up support from Labor and crossbench senators for the inquiry which will look at the merits of tasking the competition watchdog with a dairy investigation.
The Australian Competition and Consumer Commission would investigate how it could regulate the price of milk per litre paid by processors to dairy farmers.
The proposal mirrors Labor’s pre-election policy.
Liberal frontbencher Jonathon Duniam said the industry did not support calls for re-regulation.
“As recommended by the ACCC, we are implementing a mandatory code of conduct to increase fairness and transparency between dairy farmers and processors,” he told parliament.
The government has been criticised over delays surrounding the code.
But Senator Duniam said it was expected to be in place by the start of next year with an exposure draft to be released soon.
The inquiry will be centred on the performance and profitability of Australia’s dairy industry since deregulation in 2000.
The Senate’s regional affairs committee will look at the funding of Dairy Australia and its ability to act independently.
The inquiry will also look at the code of practice and other approaches to making dairy farming viable.
It’s due to report in March 2020.