The pistachios were processed at California-based Setton Pistachio of Terra Bella Inc., which is in the corporate family of Commack, N.Y.-based Setton International Foods Inc. The Food and Drug Administration is inspecting the nation's second-largest pistachio processor.
Kraft spokeswoman Laurie Guzzinati said her company's auditors "observed employee practices where raw and roasted nuts were not adequately segregated and that could explain the sporadic contamination."
She said she didn't know what they saw specifically, but "that's how the auditors shared the information with us."
Federal health officials warned people on Monday not to eat any products containing pistachios while they investigate.
The FDA said Setton Pistachio was voluntarily recalling more than 2 million pounds of roasted nuts shipped since last fall. Some of those nuts were shipped to Norway and Mexico, officials said yesterday.
"We know that the farm in California shipped its products to 36 wholesalers," said Dr. David Acheson, assistant FDA commissioner for food safety. "But what we don't know yet is what those wholesalers did with them - whether they were repackaged for consumers, or whether they were sold to manufacturers making ice cream or cookies or candies."
Two people called the FDA complaining of gastrointestinal illness that could be associated with the nuts, but the link hasn't been confirmed, Acheson said. Still, Setton decided to shut down the Terra Bella plant late last week, officials said.
The FDA learned about the problem March 24, when Kraft Foods notified the agency.