Chocolate giant Cadbury latest victim in Chinese poisoned milk scandal

The British chocolate giant Cadbury has become the latest victim in China's poisoned milk scandal - the company has reported finding melamine in its Chinese-made chocolates.

Cadbury, one of the world's largest chocolate makers, has recalled 11 types of chocolate made at a Beijing factory which are sold in Taiwan, Hong Kong, Australia, Nauru and Christmas Island.

Cadbury's has also recalled bags of Chocolate Eclairs, which have been imported from China, after tests raised doubts about their safety.

The scandal first erupted early this month when it was revealed that melamine had been found in milk powder and was linked to the deaths of four children, another 54,000 children have developed kidney stones and many others have become ill after drinking the tainted baby formula.

The contamination has now spread and has been found in liquid milk, yoghurt and other products made with milk including sweets and chocolate.

Cadbury says preliminary test results showed traces of melamine in chocolates produced at the company's factory in Beijing, but it was not yet known how much of the chemical was in them - Cadbury factories outside China did not use Chinese dairy products.

Experts say it is possible some melamine may be transferred from the environment during food processing.

The chemical is used to make plastics and while ingesting a small amount of the chemical poses no danger, health experts say melamine can cause kidney stones and lead to kidney failure and infants are particularly vulnerable.

Two U.S. food makers are reportedly investigating Indonesian claims that high traces of the industrial chemical had been found in Chinese-made Oreos, M&Ms and Snickers - the same goods have apparently tested negative in other Asian countries.

Most confectionery made in Australia and New Zealand uses Australian and/or New Zealand dairy ingredients and Dairy Australia say that melamine contamination of milk has not been found in Australian sourced dairy products.

The New Zealand Food Safety Authority (NZFSA) has also confirmed that New Zealand dairy products are free from melamine and confectionery manufacturers in Australia and New Zealand have, or are, in the process of confirming the safety and origin of the dairy content in their confectionery products.

Critics however say no one in Australia checks whether imported products are produced in clean factories and the strict standards employed in Australia do not always apply in other countries.

Experts say labelling could be improved as it is not always clear where some ingredients in a product originate from or exactly what is in a product.

The Confectionery Manufacturers of Australasia, which represents about 80 companies, says most Australian manufacturers use local dairy products because they are cheap and readily available.

Food Standards Australia and New Zealand says the system is good and works well.