Germany has narrowly avoided a major spat with Brussels over the discovery of a banned pesticide entering the organic feed supply chain, but faces new problems after it emerged the toxin could have entered the conventional feed chain as well. Brussels officials said they were satisfied the banned substance, nitrofen, had come from only one source ­ a storage site in the eastern German town of Malchin. Had further sources emerged, Germany could have faced EU sanctions banning sales of produce from all its organic farms to EU states. However, it emerged this week that wheat stored at the rogue warehouse was also made into feed for pigs, chickens and cattle in the conventional food supply chain, sparking fears that the contamination was far more widespread than first thought. German officials have shut down 500 farms in Mecklenburg-Western Pomerania, and further closures are expected. The scandal has already cost organic farmers at least E540m. Supermarkets withdrew organic eggs and poultry-based sausages from organic farms off their shelves last month as a precautionary measure. The organic food industry has since pledged to set up a new umbrella organisation to monitor standards. A spokesman for C&C and supermarket chain Metro said it was conducting strict checks on all its products in the wake of the scandal, but had so far discovered no traces of the banned substance: "We have withdrawn all eco [organic] eggs from all our stores and two types of poultry-based sausages from our C&Cs stores as a precautionary measure." {{NEWS }}