Mr Littleproud told the ABC’s 7.30 that any royal commission into the farm sector would not be limited to dairy.
Asked about a royal commission, Mr Littleproud said: “You never say never. If we are to go down that track, I would not limit it to dairy.
“I think agricultural products more broadly and their relationship with supermarkets if it was to go down to a royal commission level should be tested rather than just a narrow focus on milk,’’ Mr Littlepround told 7.30.
“It is not just the dairy industry that has issues with the retail sector.’’
Pressure for dairy industry reform has been sparked by supermarkets selling milk for $1 a litre which dairy farmers argue is keeping an artificial lid on prices and undermining the viability of their operations.
Some dairy farmers complain that farm gate milk prices have not increased in more than two decades.
Drought conditions have increased pressure on the industry as farmers have been forced to buy feed which has increased their production costs to above the farm gate prices they are receiving from processors.
Major supermarkets such as Woolworths and Coles responded to the financial crisis facing the industry by imposing a drought milk levy on some products with the proceeds going to farmers.
However farmers have pushed them to increase the levy.
Many farmers also argue the supermarkets need to lift their retail prices which would flow through to an increase in farm gate prices and improve their long-term viability.
Supermarkets also have faced criticism from food and grocery manufacturers over their supply arrangements _ particularly their treatment of suppliers who make products that are competitors to supermarkets home brand ranges.