The cost of some dairy products such as cheese and butter is set to rise and Goodman Fielder is blaming dairy giant Fonterra.

Goodman Fielder has told its retailers that from next week, butter will go up 10.2% and cheese a staggering 12%.

It says because Fonterra, which supplies over 90% of New Zealand's milk, has pushed up raw milk prices, it is being forced to up its prices too.

"We think an independent milk commissioner would provide more competition," said Sue Chetwin of Consumer New Zealand.

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