This article is from the Woodworking FAQ Collection 1, by multiple authors.
a. Behlens Salad Bowl Finish. This product has been approved by
the FDA for use on objects that will come in contact with
food. It produces a nice, semi-gloss finish.
(Apparently the can no longer states the FDA approval, but
product is still safe for food contact after appropriate
drying time - 12/30/94).
b. Any vegetable oil. Could become rancid after a period of time.
c. Walnut oil. It reacts with the air and hardens into a true
finish. It works particularly well when the oil is heated
and the item is dipped into the warm oil. Available at health
food or large grocery stores. Don't buy the gourmet stuff!
d. Mineral oil or vaseline.
e. Water-based polyurethanes. These are new products which are
very different from the more familiar oil-based
polyurethanes. They are totally non-toxic, dry quickly, and
have no strong odors when applying.
f. Pure Tung Oil. It has no driers or solvents. It is essentially
just a vegetable oil but produces a nice finish that won't go
rancid. Use only Tung Oil that is "pure".
g. Rumor has it that shellac is also safe once it dries. I have
been unable to verify this.
h. Watco claims its oils are suitable for food or baby use if they've
been allowed to dry for 30 days or more. They claim that it takes
this time for full polymerization.
i. Paint. Some paints claim to be non-toxic when dry.
h. Leave items unfinished.
If you are unsure about any finish you plan to use, contact the
manufacturer and request the information. You can also request
an MSDS (Materials Safety Data Sheet).
 
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