WELLINGTON -- A controversial application to insert human genes into cows in the hope they can produce milk with medicinal qualities was approved Tuesday in New Zealand, DPA reported.

A state-funded Agricultural Research Organization believes milk from the genetically modified cows may be used to combat diseases such as multiple sclerosis.

Approval for the project came from the Environmental Risk Management Authority (ERMA) after a long inquiry in which it received 863 submissions, only seven of them in favor.

The Green Party, which is strongly opposed to genetic engineering of animals and crops, deplored the decision, while scientists hailed it as paving the way for a biotechnology breakthrough in New Zealand, which is one of the world's biggest producers and exporters of dairy products and other foods.

Erma chief executive Bas Walker said potential benefits of the experiments outweighed the risks.

Genes from goats, pigs, sheep and mice can also be put into cattle under terms of Erma's approval for the project which must be contained on a secure farm.

The Agresearch Organization, which will carry out the experiments, hailed the decision as a landmark in science.

Chief Executive Keith Steele said work would start immediately on developing therapeutic proteins in milk which could result in new pharmaceutical health products for humans.

Erma said because the experiments will be done on a restricted farm, approval did not conflict with New Zealand's moratorium on the general release into the environment of genetically modified plants, animals and microorganisms, which the government has said will stay in place for another year.