The EU's food safety body on Monday advised a maximum threshold for the cereulide toxin infant milk which France said was likely to prompt some producers to withdraw additional products from the market.
Cereulide, a toxin that can cause nausea and vomiting, has been detected in ingredients from a Chinese factory supplying major formula makers including Nestle, Danone and Lactalis.
The contamination triggered infant formula recalls in dozens of countries and heightened concerns among parents.
The European Commission asked the European Food Safety Authority to urgently establish a scientific safety threshold, known as an acute reference dose (ARfD), to guide governments and producers on when products should be pulled from shelves.
In its assessment, EFSA proposed a new limit of 0.014 micrograms per kilogram of body weight for infants. The agency said very young babies process substances differently and require extra protection. Vomiting was identified as the key short-term symptom used to determine the threshold.
The French farm ministry, which anticipated EFSA's advice over the weekend, said the level was more than half lower than the previous one and that a tighter threshold would likely lead to additional precautionary recalls.
French manufacturer Popote said on Monday it was withdrawing two batches of infant milk following the new threshold recommendation.
In contrast, the EFSA's guidance was good news for Nestle and Danone as both companies' thresholds for non-detectable levels of cereulide in infant formula powder are below the EFSA level, Barclays analysts said. Neither company should have to make further product recalls, Barclays said.
Danone's shares were up 2.9 percent while Nestle's shares were 3.1 percent higher by 1400 GMT.
"We welcome the latest EFSA rapid risk assessment to provide further clarity on the food safety framework for cereulide in infant formula," Nestle said, adding that it had called for harmonisation based on a science-based risk management approach.
Danone had no immediate comment.
The French agriculture ministry and Popote said on Monday that Chinese producer Cabio Biotech was the producer of the arachidonic acid (ARA) oil at the source of the contamination.
Cabio Biotech could not immediately be reached outside of working hours.
NEW THRESHOLD FOR INFANT SAFETY
EFSA's recommendations are not legally binding, but EU countries typically follow them when deciding whether to recall food products or restrict sales.
The agency also estimated how much formula infants are likely to drink in a 24-hour period, allowing scientists to calculate when the new limit would be exceeded.
Based on those consumption levels, EFSA said that cereulide concentrations above 0.054 micrograms per litre in infant formula and 0.1 micrograms per litre in follow-on formula could pose a safety concern.
French investigators are looking into whether there is a link between the death of two infants and recalled formula products, the health ministry said, adding that there was no such evidence at this point. Results were expected in the coming days.
(Reuters)