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Cocoa grinders in China are striving to improve quality as consumers turn their backs on their products because of the high use of cocoa shells, a senior industry official said on Friday.
"Demand for cocoa products from China is falling because of the bad image," Guo Weir Ping, manager for cocoa division at the state-run China Tea trading firm, told Reuters on the sidelines of a conference on the island resort of Bali.
"Even chocolate makers import cocoa powder into China. They do not trust Chinese cocoa powder," he said. Dealers said instead of using beans, many Chinese grinders have been using cocoa shells to make powder, which is used, for coating in chocolate making, beverages and ice cream. Good quality powder is made from cocoa beans rather than shells, which dealers say may contain bacteria and acids.
Official's data showed China's cocoa shells imports jumped more than 80 percent to 35,867 tonnes in 2003 from the previous year.
Imports have since dropped but dealers said China was struggling to shake off its image a source of low quality cocoa products. Cocoa shell imports dropped to 7,531 tonnes in 2006 from 10,916 tonnes in 2005. "The reputation has been spoilt. That is something that we want to refute in the near future," said Guo, without elaborating.
China is one of Asia's largest grinders and is an emerging market for chocolate, with locals buying for occasions from Valentine's Day to Christmas. Chocolate is also replacing traditional sweets at weddings, said dealers. "The Chinese people are getting richer. They are trying to get good-flavoured chocolate," said Guo, adding that the shift in taste was also the reason why powder imports had dropped.
There are six grinders in China, with a total installed capacity of 70,000 tonnes a year. When processing cocoa beans, grinders also get butter, a key ingredient for chocolate. China's butter ratio was steady at 2.5 times London futures, said Guo. China's imports of chocolate and cocoa products rose 95.4 percent to 1,111 tonnes in January to May of 2007, customs data showed.

Copyright Reuters, 2007

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