The calf was born at a lab of Inner Mongolia Agricultural University, China, reported Xinhua.
In order to breed the new calf, the scientists collected fetus fibroblasts from a Holstein cow that was 45 days pregnant in May 2011, and genetically engineered the fetus by including a lactose dissolution enzyme.
This enzyme is capable of dissolving lactose to glucose or galactose, making the milk easily digestible for those with lactose-intolerance.
The scientists then placed the engineered fetus into the womb of a cow in July 2011.
This process was also conducted on 14 heads of cattle, and five calves were born in April 2012; however, only three calves carried lactose dissolution enzyme, and one calf survived.
According to researchers, the calf will produce safer milk for people with lactose-intolerance, which affects nearly 60% of the Chinese population.
Leader of the research team Zhang Li said the calf, which is healthy and strong, is a blessing for people with lactose intolerance.
"She will produce low-lactose milk after she is 25 months old and have delivered calves," Li added.
Lactose intolerance is the inability to digest lactose - a type of sugar found in milk and other dairy products, and its symptoms include abdominal bloating, diarrhea, flatulence, and nausea.
In order to deal with lactose intolerance, individuals are recommended to decrease or eliminate milk products from the diet, and consume other food products that contain calcium to maintain nutrient intake.