The competition watchdog has had to pull resources from other matters to investigate the cuts to the milk price paid to farmers by dairy producers Murray Goulburn and Fonterra.
Australian Competition and Consumer Commission (ACCC) chairman Rod Sims says the ACCC is constantly making a trade-off on how many issues it considers and how much it focuses on them.
"When the Murray Goulburn matter came along, it's not as if we had people lounging around and when the fire alarm sounds they slide down the pole and get to work," Mr Sims told reporters on Friday.
"We took people off other matters to work on Murray Goulburn."
Mr Sims said the ACCC could always do more if it had more money.
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Farmers want milk price security
He said that when the ACCC takes on large companies in court, those companies outspend the ACCC by up to 10 times on an army of lawyers.
But Mr Sims declined to proffer a wish-list ahead of the July 2 election.
Mr Sims said the ACCC was probably at the bottom of the acceptable range of funding, with $170 million supplied by taxpayers - enough to do a reasonable job.
"But a bit more would allow us to be faster with Murray Goulburn," Mr Sims said.
Recent cuts to the farmgate milk price by Murray Goulburn and Fonterra have sent dairy farmers reeling.
The ACCC is investigating whether the cuts to the milk price involved any misleading or unconscionable conduct.
The ACCC is interested in the timing of the cuts and the period of notice given to farmers to consider their options.
Asked if enough had been done to protect dairy farmers, Mr Sims said it was a difficult and emotional issue.
He said the ACCC investigation was still in its early stages and the ACCC had not yet formed any views.
"But I think it really is a very serious issue," Mr Sims said.
Mr Sims earlier said in an address to the American Chamber of Commerce in Australia that the ACCC was not strangling big business with red tape.
Also, big business should understand that the ACCC was the public champion of competition and should stop seeking to make the ACCC shut up.
Mr Sims said the largest criticism of the ACCC by far, from the public and politicians, was that it did not do enough, but big business thought the watchdog did too much.
Mr Sims noted the ACCC's successful pursuit of supermarket giant Coles in 2014 over claims of unconscionable conduct by Coles towards its suppliers.
"I personally believe that that has actually had a good impact on Coles," Mr Sims said.
"I think that has changed Coles' behaviour and Coles are dealing with their suppliers in a much better way."
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