But it is banned from being used to treat animals destined for human consumption, such as chickens.
The European Commission said it had been made aware of the egg issue, and spokeswoman Anna-Kaisa Itkonen told reporters developments were being monitored “very closely”.
“What I can say is that the farms are identified, the eggs are blocked, the contaminated eggs are traced and withdrawn from the market, and the situation is under control.”
– Red lice –
It is believed the toxic substance was introduced to poultry farms by a Dutch business, named Chickfriend, brought in to treat red lice, a nasty parasite in chickens. Dutch and Belgian media reports that the substance containing the insecticide was supplied to Chickfriend by a Belgian firm have not been confirmed.
German officials are also investigating reports that the contaminated product had been delivered directly to German poultry farms in the Lower Saxony region, which then sold their eggs in other parts of the country.
The biggest supermarket chain in The Netherlands, Albert Heijn, said meanwhile it was pulling 14 types of eggs from its shelves.
“All the eggs of these 14 kinds have been sent back to the depot and destroyed,” company spokeswoman Els van Dijk told AFP.
Belgium’s federal food chain security agency (AFSCA) has also launched a criminal investigation in cooperation with prosecutors.
Tests have found fipronil in some eggs but not in quantities that pose a threat to human health. None of the eggs have made it to Belgian supermarket shelves, the Belgian authority said.
In large quantities, the insecticide is considered to be “moderately hazardous” according to the World Health Organization, and can have dangerous effects on people’s kidneys, liver and thyroid glands.
With losses expected to run into millions of euros, it is another blow for Dutch poultry farmers after 190,000 ducks were culled in November amid a highly infectious strain of bird flu.