… if baby passes it’s first poo (meconium) during labour?

Yes, you can proceed. 15-20% of term babies and 30-40% of post-term babies will have passed meconium in utero. Meconium is dangerous for the baby to inhale, but is otherwise harmless. Additionally, your placenta is thoroughly washed and the membranes removed before the encapsulation process is begun. The high heat of steaming and/or dehydrating kills any remnant bacteria.