A dairy co-operative farmer has complained to a Senate inquiry that he has not been able to get his shares paid out after transferring to a new processor.

Australia Milk Producers Association representative Kevin Tesselaar from Timboon said he had been a supplier to Murray Goulburn until June 2009.

Up until January when the hearing was held he had not been paid out for his shares.

He said he had to become a shareholder when he became a supplier.

The shares were deducted from his milk payments.

"I left Murray Goulburn in June last year and I still have not been paid for the shares that I had in that company.

"If I relinquished dairying my shares would have been paid out in roughly six weeks, but because I have gone to a different company, those shares are being withheld and will be paid out at the directors' discretion," Mr Tesselaar said.

"The directors told me that they would pay out my shares when the company finances allowed it.

"Now, if that is not a penalty or a wooden stick for leaving the company then I do not know what is."

Mr Tesselaar said his share portfolio was worth about $9000.

He said the practice of dairy companies charging their suppliers for milk transport, when they had no choice about which company transported their milk was an anticompetitive practice.

He said with the milk price crash he could use the share money to pay out his outstanding accounts.

The Senate economics committee sat in Melbourne in January and is continuing its inquiry.