A system for detecting oil contaminated product and foreign matter within a product stream is provided. The system includes a first conveying means for delivering a product stream; a first detection apparatus for detecting oil contaminated product, the first detection apparatus positioned proximate the product stream, the first detection apparatus including a high intensity infrared light source directed at the product stream; and a high speed NIR spectrometer sensor tuned to detect a reflected signal from a taggant disposed in the oil of the oil contaminated product; a second detection apparatus for detecting foreign matter within a product stream, the second detection apparatus positioned proximate the product stream, the second detection apparatus including a light source for illuminating the product stream and a detector for detecting light reflected from the product stream; and a controller for determining whether the product stream contains oil contaminated product or foreign matter by monitoring signals obtained from the first detection apparatus and the second detection apparatus.