Italy's first suspected case of BSE has been found in an animal destined for the McDonald's restaurant chain, The Independent newspaper reports. Traces of the disease were found over the weekend in an animal that was slaughtered at an abattoir belonging to the northern Italian food conglomerate the Cremonini Group, based just outside Modena. The group, which supplies McDonald's restaurants all over Europe and produces 80 per cent of Italy's processed meat products claimed that "Thanks to efficient electronic tagging process, the carcass of the suspect animal was immediately identified and isolated." Assocarni, Italy's national meat industry association, said 85 per cent of cattle killed in the country were too young to pose a risk of BSE. This news comes at the same time that the Australian and New Zealand Food Authority (ANZFA) is considering banning the importation of European dairy products in the wake of fresh fears mad cow disease could be transmitted by milk. Britain's Food Standards Agency has launched a nationwide investigation into safety risks following warnings the original research that declared milk safe was flawed. Britain will begin new tests within weeks but its Food Safety Agency said it would take three years, the incubation period for BSE, before findings were released.