The council had taken court action against a slaughter house in a legal test case backed by the Ministry of Agriculture, Fisheries and Food.
The dispute began last year when the company defied legislation by refusing to have 50 pigs inspected by a qualified vet before they were slaughtered, claiming the practice would cost an extra £25,000 a year.
But the case collapsed at Aylesbury Crown Court last week after the MAFF failed to produce vital documents.
The MAFF would only say that the action was dropped after 'certain things came to light' during the court case.
The ministry is currently considering a change to the law allowing vets to delegate inspection powers of animals which are in a low risk category.