Went Googling, want to get the right info to share, again found many comments:
The RIC Good Wood Guide (From Australia)
The ultimate non-toxic timber treatment is not to use any! Make sure circumstances require that the timber be treated to preserve it. If the timber needs treatment, use plant or earth-derived low-gloss, noise-absorbent materials, which harbour no unpleasant smells, which allow the timber to breathe (apart from waxes, say) and which do not allow the buildup of static electric charges in dry weather (such as with hard finishes like epoxy and polyurethane). Use non-skid surfaces on floors.
Tung Oil
Made by Intergrain Timber Finishes, Wattyl, Estapol, etc.
Tung, or Kekune oil has been used as the drying ingredient in varnishes for many years. In its own right, the oil when applied allows timber to breathe, and reveals the characteristics of the grain. Tung oil is derived from the seeds of the T'ung Tree (Aleurites spp), which is native to East Asia and the Pacific. (Japanese, Taiwanese and Chinese woodcrafters call it the Wood Oil tree.) It is also cultivated in the US and Europe.
There is still some debate about the toxic effect of tung oil on people, so if you decide to use it, choose one with a szero or low concentration of synthetic driers and additives.
(This one is from the US)
Tung oil is naturally non-toxic and environmentally friendly
Masters Blend Tung Oil-100% Pure™ has zero VOC’s (volotile organic compounds). VOC’s contribute to health problems, smog and noxious odors. Masters Blend is recommended by
Green Reports (click here). Tung oil is naturally polymerizing and cures by oxidation, not evaporation. Tung oil is FDA approved for food contact.
Click here to see the FDA Reference.
Don't think anyone would mind if Tung Oil is bad for insects, even better as there is so much of them around here!