A study commissioned by the federation revealed food producers received about a quarter of the retail price charged for a basket of food items, a figure which has been consistent since 2004.
Mr Pedersen said in an interview that the report confirmed what farmers thought - that they received about 25% of the retail price.
That raised questions about how the balance was shared out.
Of a 20-slice loaf of bread, producers received the equivalent of three slices, one of four pieces of steak and three glasses out of a two-litre container of milk.
The report showed the producer's share of retail prices was: bread 16.37%, lamb chops 30.97%, blade steak 18.86%, milk 35.46%, honey 40.12% and cheese 5.30%.
Honey was an example of how retailer margins were inflating prices, he said.
It required little processing and the producer received the greatest share of the end price, but Mr Pedersen said the price consumers paid indicated a 100% mark-up.
"Is that what the retailer expects - a doubling in the price of shoes, for example? I don't know."
He appreciated the more food was processed the smaller the producer's share, and the research highlighted that with cheese, where producers received just 5%.
The New Zealand Institute of Economic Research (NZIER) concluded that inflation was a major reason for the gap between retail food prices and the farmer's share, and because so much of our food was exported, international markets influenced prices.
"Given the significance of these international factors, addressing increasing domestic food prices requires a response broader than simply targeting the returns to New Zealand farms," NZIER said.
"Lowering domestic farmers' returns may depress the domestic supply of food and in turn increase dependence on imported foods and the growth of food prices further."
Statistics New Zealand's food price index rose 8% in the past two years but NZIER said this followed a 4% rise between January 2004 and January 2006.
In the four years from January 2004, NZIER said the cost of a typical basket of food rose about 12%, led by meat, fish and poultry rising 14%, non-alcoholic beverages 14%, restaurant meals and ready-to-eat foods 13%, grocery food 12% and fruit and vegetables 10%.
For the year to January 2008, food prices rose 4%, led by grocery food increasing 8% and the balance of items lifting 3% to 4%.
"Increasing retail food prices do not necessarily reflect farmers receiving increasing shares of prices," the institute said.
New Zealand has little influence on prices in international markets, the report said, but they set New Zealand domestic prices.
Since 2002, international butter prices have doubled, the price of milk powder and cheese has increased more than 80%, grain and beef prices have firmed and there are signs lamb will soon follow.
In addition, the power of global supermarket chains "has tipped the balance of negotiating power towards the retailer and against the producer".
Rising costs have been an issue for farmers.
Statistics New Zealand's farm price index in the year to December 2007 rose 4.9%.
