The Environmental Protection Agency (EPA) today blamed Aventis SA (NYSE: AVE) for allowing its bio-engineered corn, StarLink, into the nation's corn supply, according to The Wall Street Journal.  StarLink is not approved for human consumption because of concerns it could produce allergic reactions in some people. 

Earlier this week Aventis submitted new evidence to the EPA that it said demonstrates StarLink is safe for humans, and is well within the margin of safety for those prone to allergic reactions. Aventis also asked for a time-limited, four-year approval for the corn to work its way out of the harvesting, processing, and distribution system. The EPA says it realizes the "urgency of the situation," but won't be rushed into a decision. It may take several weeks for the agency to come to a conclusion.

The Journal says the EPA is blaming Aventis for not keeping StarLink separate from breeds of corn grown for human consumption. According to the Farmer-to-Farmer Campaign on Genetic Engineering in Agriculture, some farmers say Aventis never told them StarLink corn was not suitable for human consumption, that it had to be segregated from other crops, and that they were required to implement a 660-foot buffer zone around fields planted with StarLink. Aventis has not yet provided comment on the charge. 

StarLink has been found in several food-processing plants around the country, and some have temporarily shut down while officials test for contamination. Some of the affected companies include ConAgra (NYSE: CAG) and Kellogg Co. (NYSE: K). Several products have been recalled, including taco shells and tortilla chips. Federal officials say some one million bushels of StarLink are still unaccounted for, and may be mixed into the food supply.

The situation worsened a few days ago when officials in Japan announced they had found StarLink in one of their products. The Japanese Health Ministry asked U.S. officials to stop exporting foods containing the corn, and the U.S. Agriculture Department is investigating.

The EPA approved StarLink corn for use in domestic animal feed and non-food industrial uses in 1998. The corn contains a gene to help repel the European corn borer insect, which, according to Iowa State University, costs U.S. farmers more than $1 billion annually in reduced yield. Aventis has agreed to stop selling StarLink seed, and said it will buy back corn from farmers who planted it. Because of the failure to keep StarLink out of the human food supply, the EPA says it is unlikely it will ever again approve a bio-engineered crop product for use only in animal food. 

France-based Aventis is a giant in the pharmaceutical and agricultural fields, employing 90,000 people in 150 countries. The corn fiasco has meant very little to the bottom line, and its share price has been largely unaffected. The company reported strong second-quarter earnings in August, and will eventually divest its agriculture business.

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