Agriculture Secretary, Nick Brown, described the practice as "horrible and disgusting" but said it was a matter for the European Commission to resolve.
The disclosure has caused particular fury among UK farmers because France is currently refusing to allow the import of British beef on health grounds, in defiance of the EU which has given it the all-clear.
Health experts say the French are also risking an outbreak of BSE.
Opposition politicians want the government to block imports of French animal products.
But Prime Minister Tony Blair said Britain had to act in accordance with EU law.
A Downing Street spokesman said: "The Prime Minister spoke to Nick Brown this morning to congratulate him and say he fully supports the tough stance he is taking over the French ban.
"Tony Blair believes Britain has the strongest possible case and is confident the European Commission will support the British position in the future as it has in the past.
"Britain will continue to act in accordance with the law and urge others to do the same."
'BSE risk'
But shadow minister for Europe Archie Norman accused the government of being wimpish and said it had a "golden and legitimate" opportunity to act.
He said: "British farmers are looking for a sense of urgency from the government but yet again Nick Brown has failed to act.
"Imagine what would happen if a British farmer was caught with animal feed contaminated with human waste - a thousand bureaucrats would descend, the farm would be shut down and the animals slaughtered.
"What the people of Britain want are the same rules applied to France as those that exist in Britain."
Meanwhile a leading food hygiene expert has warned that the French are risking an outbreak of BSE.
Professor Hugh Pennington, who conducted the inquiry into the E.coli food poisoning outbreak which claimed 21 lives in Lanarkshire three years ago, said the French practice represented a "classic" means of transmitting disease.
![[ image: width=150]](/olmedia/480000/images/_483398_rumsteck150.jpg)
He warned: "This could be a re-run of the BSE problem, which started because we were recycling dead beef into beef."
But Mr Brown said his scientific advisers had told him the risk was not great enough to justify an immediate, unilateral ban.
He said: "I have taken advice from my professional advisers on whether we ought to ban the importation of French produce under health and hygiene rules and they say 'definitely no'.
Contaminated feed
The EC has given France until 28 October to come up with suggestions to supervise its rendering plants.
France argues that since the waste is being heat-treated, the resulting matter is safe and can no longer be considered sewage sludge.
Signs of an unofficial boycott of French products among the British public, however, are growing.
![[ image: width=150]](/olmedia/480000/images/_483398_bacon150.jpg)
Tesco reported a drop in sales of French dressing, fresh French produce and Dijon mustard, and said it had cancelled a £2m order for French mistletoe this Christmas.
Asda said it was taking French brie cheese and French bread off its shelves.
Two other foodstores, Budgens and Somerfield, have launched a boycott of French apples and pears.
And even Mr Brown himself has admitted a personal ban on French groceries in his house.
EU scientific experts are meeting in Brussels on Monday to consider for a second time a vast dossier of evidence on British beef from the French Food Safety Agency.
France warned over animal feed
(23 Oct 99 | Europe)
France 'risks BSE crisis'
(23 Oct 99 | Scotland)
The beef between France and Britain
(22 Oct 99 | UK)
Somerfield joins French ban
(22 Oct 99 | The Company File)
Tory MEPs' beef with armed police
(20 Oct 99 | UK Politics)
MPs take beef to the French
(18 Oct 99 | UK Politics)
EU may sue over food scandal
(08 Jun 99 | Europe)
European Commission
French Ministry of Economy (in French)
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