The rivalry between Anchor and Country life is set to intensify as Arla leverages its switch to UK production - by flagging up Anchor’s new British credentials.

Arla confirmed on Friday that it intended to migrate production of Anchor butters to Westbury Dairies, in which it owns a stake, with UK-produced Anchor block butter due to hit shelves this week.

New pack designs are still in the pipeline, but a spokeswoman said the Arla logo would be added to the end of block butter packs, together with a ‘Supporting British Farmers’ strapline.

Flagging up the country of origin of Anchor will give Arla greater ammunition against Dairy Crest-owned Country Life, which has run radio ads in which former Sex Pistol John Lydon asks: “Do I buy Country Life butter because, unlike Anchor from New Zealand, it supports our great British dairy farmers?”

Country Life block butter also carries the strapline: ‘Made exclusively with British milk’.

An Arla spokeswoman would not comment on whether the move would result in a lower rsp for Anchor, claiming it was “commercially sensitive information.”