A retired teacher in northwestern China has found a novel raw material for making paper - poop from the giant panda.

Liu Xiaodong, 68, has had a paper-making workshop in Qiliang village of Shaanxi province since stepping down as the local primary school principal in 2008.

Two years ago, he began experimenting with panda excrement, mixing it with varying quantities of mulberry tree bark, wild kiwifruit vines and spring water to make paper. On Nov 17, he finally cracked it.