Anchor butter to be banned from the EU

It has been a staple in the British family kitchen for decades and is one of the most recognisable of food brands. But Anchor butter has fallen foul of the latest intervention by Peter Mandelson and has been banned under a European Union ruling.

The EU has suspended the import of all New Zealand butter after a decision that the current arrangements are "illegal". The Commonwealth country has been a leading exporter to the European market since it was given preferential access under Britain's negotiations to join the European Economic Community in 1973.

But Mr Mandelson, the EU trade commissioner, imposed the ban last week on leading brands, such as Anchor, while the commission considers Tuesday's ruling by the European Court of Justice, which says parts of this agreement are invalid. The ban has been attacked as "outrageous" by politicians from Westminster to New Zealand.