Claims landfarms may contain toxins that could have an effect on the milk.
Dairy giant Fonterra will not collect milk from any new landfarms.
Taranaki has a number of landfarms where oil and gas drilling waste is stored in pits and then spread over paddocks.
The practice has attracted critics who claim the landfarms may contain toxins in the soil that could have an effect on the milk produced by cows that graze on the grass.
Fonterra already accepts milk from six farms but has said no more will be taken on, Radio New Zealand reported this morning.
The company said the cost of testing the milk is too expensive at about $80,000 per year, and the need to have a public perception of a safe clean dairy industry was also taken into consideration.
The Taranaki Regional Council says landfarming is safe and has no environmental effect except to improve coastal sandy soils for productive farming.
But they admit there is limited information to inform their decisions.
Source: Stuff