The Government has come down in favour of dairy companies - opting out of an international infant formula proposal.

Rules designed by Food Standards Australia and New Zealand restrict labelling - and only let pharmacies and healthcare providers sell specialist formula.

Industry giant Danone threatened to withdraw from New Zealand if it went through - taking away 441 jobs.

Food Safety Minister Andrew Hoggard told Heather Du Plessis-Allan they want New Zealand products to remain competitive.

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