New Zealand's biggest dairy market, China, has stopped testing for the chemical DCD in milk powder.
China started testing for dicyandiamide after Fonterra, the Primary Industries Ministry and fertiliser companies revealed in January that small traces of the chemical had been found in some milk products.
The residues came from nitrification inhibitors that some dairy farmers were using to reduce nitrate leaching and emissions from pasture.
MPI has confirmed that China stopped the tests at the beginning of the month and has released products that were being held for checking.
The ministry said it's advised exporters and other stakeholders about the removal of testing requirements.
The residues have not been a health issue, but DCD based nitrification inhibitors are no longer being sold and MPI is working on new residue standards.