New Zealand dairy giant Fonterra has said China has lifted the import ban on its milk powder used to make baby formula that was implemented last August following a false alarm safety scare.

China banned imports of New Zealand milk powder last August after Fonterra, the island nation's main dairy exporter, said it had found a bacterial strain in some of its products that may cause botulism.

Fonterra's announcement also led to a global recall of up to 1,000 tonnes of dairy products across seven countries, including China. The New Zealand group later said independent testing confirmed there was no presence of the strain, called Clostridium botulinum, in Fonterra's whey protein concentrate ingredient and the products made using it, including infant formula.