Processing co-op Dairy Farmers of Britain has pledged to maintain milk prices for its members in December despite “unnecessary downward pressure” in the market.

Chief executive Malcolm Smith said: “The current moves by some companies to reduce farm gate prices are complete madness. Cumulative milk supply is the lowest it has been for four years and cheese and commodity prices are stable.

“With low supply and strong demand, basic economics dictates that milk prices should be increasing not decreasing, yet some milk buyers continue to drive farm gate prices down.”

Dairy Crest, Robert Wiseman and Arla Foods have all cut raw milk prices in recent weeks.