MBP is believed to have beneficial effects on multiple sclerosis.
If the cows reproduce it in sufficient quantities, further tests will be done to see if a medicine can be developed for humans.
The scientist in charge of the experiment, Dr Phil L'Huillier, said he had not been officially notified of the go-ahead.
"Obviously I am pleased and relieved that progress has been made."
The Government's moratorium on gene trials applies only to those put before Erma after June 14 this year.
Green Party co-leader Jeanette Fitzsimons said the timing of the cattle decision could not have been worse. "This is the most inappropriate decision to make while the royal commission [on genetic engineering] is still setting up."
A critical issue for Erma has been strong objection by Waikato Maori. Under the Hazardous Substances and New Organisms Act 1996, the authority must address Maori concerns when approving genetic experiments.
News of the go-ahead follows an ethical row in Britain where it was revealed that DNA from an unnamed Danish woman had been inserted into a flock of genetically engineered sheep in south Waikato.
The trial on 50 sheep at Mangakino was approved last year.
PPL Therapeutics, the Scottish-based company which cloned Dolly the sheep, hopes to reproduce a gene to treat cystic fibrosis.
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