A Farmers Best cheddar range, which launches this month, will comprise mild, mature and extra mature variants and will be sold in 200g and 400g packs.
It will rival brands such as Dairy Crest's Cathedral City Cheddar. The collective plans to introduce further lines, including milk and cream, which will take on brands such as Arla's Cravendale
Dairy Farmers of Britain is the biggest milk processor in the UK, producing more than 1.2bn litres a year.
The decision to launch a dairy range marks a significant strategy change for the group, which previously housed a range of disparate and regional brands. It is hoped the streamlined brand will boost its distribution muscle so that it can compete with mass-market rivals.
The products are intended to capitalise on consumer interest in food quality, nostalgia for regional products and affection for British farming.
The launch, development and branding of the Farmers Best range has been handled by branding agency Elephants Can't Jump.