Milk should still be on the shelves over the festive period

Staff at Arla Foods UK, which supplies milk and butter to supermarkets such as Tesco and Asda, had voted in favour of industrial action over pay.

Yet following talks between managers and union officials, the workers are to be reballoted with the recommendation that they accept a new offer.

A company official said both sides were pleased with the meeting's outcome.

'Leading'

Arla Foods UK is a new company, formed on 22 October of this year after a merger between Aria Foods and Express Dairies.

It aims to be the 'leading dairy company in the UK'.

The merger was given the go-ahead by Department of Trade and Industry on 15 October.