Council inspectors in Lancashire have found 100kg of horsemeat from Hungary labelled as beef.

The meat was imported into the UK through Hungarian Food Ltd, a Preston-based company, and then sold through the company’s market stall in Preston as well as a shop in Liverpool called Taste of Hungary. It was sold in 1kg bags labelled as “diced beef”.

The Food Standards Agency said about 40kg of the 100kg had already been sold to the public, with the remaining 60kg withdrawn from sale. Those 60kg will now to be tested for phenylbutazone (bute), a veterinary drug that is not allowed in the food chain.

Both Taste of Hungary and Hungarian Food Ltd are catering largely for Eastern European expats in the UK. At the end of February, corned beef from Latvia was withdrawn from a specialist expat shop in London after inspectors in Germany found it contained 69% horse instead of beef.

Hungarian Food Ltd and Taste of Hungary did not immediately return calls for comment.