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@miro_o
The 'white stuff' is starch. Trays full of starch have a mould lowered onto them, pushing little baby-shaped impressions into the starch. The ascorbic acid and gelatine mix is poured into said baby-shaped impressions then cooled.
I worked making jellie babies for 6 months in 2001. I was 17 and saving to travel. It was a weird job and had elements of Pantone Blues about it for sure.