As much as 3,000 tons of animal-feed additive sold to poultry and pig farms may have been contaminated with the chemical dioxin, which has been linked to cancer cases in humans, Reuters reported.
It was previously thought that 527 tons of tainted feed additive had been sold.
Agriculture Minister Ilse Aigner stressed that there was no danger to German consumers.
"All contaminated animal feed that was on the market has been retrieved and all affected food has been pulled from shelves," Aigner said, according to BBC News.
Concern about the tainted animal feed has gripped Germany since Monday, with farms halting egg and meat production. In the state of North Rhine-Westphalia, officials warned that more than 100,000 potentially contaminated eggs had been distributed.
Officials have warned consumers to keep an eye out for potentially tainted eggs, and more than 8,000 chickens have been culled.
The problem has even gone international, with one farm sending 136,000 potentially tainted eggs to be processed in The Netherlands.
"The European Commission was informed. We are not aware of any other deliveries to other (EU) members," said Holger Eichele, a spokesman for the German Agricultural and Consumer Protection Ministry, according to Der Spiegel.
The additive has been traced back to a company in the northern state of Schleswig-Holstein. It is believed that the company may have used industrial fats when preparing the feed.
Police raided the farm Wednesday.
"There is an urgent need for much stricter penalties against those who break the law when it comes to food and animal-feed regulations," said Juergen Reinholz, agriculture minister for the state of Thuringia, according to BBC News.
Others have dismissed such calls as completely unnecessary, saying that this is nothing more than a freak case that no poses no threat.
""The system does not require reorganization," newspaper Die Welt said in an editorial, according to Der Spiegel. "This is simply a case of a company that broke the rules."