18 February 2013 Last updated at 18:11 ET
Nestle, the world's biggest food company, has removed beef pasta meals from shelves in Italy and France after tests revealed traces of horse DNA.
The Swiss-based company also suspended deliveries of processed foods containing meat from German supplier HJ Schypke.
Nestle is the latest in a string of major food producers to find traces of horsemeat in beef meals.
Last week the firm said its products did not contain horsemeat.
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