How much money could make for a kilo of cocaine

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In the past week, reports crossed our desks from two Volusia County law enforcement agencies showing very different estimates. The sheriff’s department itself gave two values. The sheriff’s department seized 4 kilos of cocaine Monday from a car driven by a couple from Jacksonville. Vogel said his higher figure reflects the average retail price for 90 percent-pure cocaine diluted the maximum number of times, then sold in the Northeast. According to the federal Drug Enforcement Agency in Miami, percent pure cocaine is rare. So what’s the big deal? For one thing, news value. In the newsroom, a million-dollar bust is likely to get screaming headlines, but a much smaller one isn’t. A larger seizure is more likely to make the front page and nightly news. The press and the public like solid figures. However, in the drug world, they aren’t easy to track down. Obviously, underworld prices aren’t fixed. Like their law-abiding counterparts, merchants in the drug world give discounts to customers who buy in bulk, Fernandez said. A drug buyer pays less for a kilo if he buys 10, rather than 2 kilos. Also, dealers who have been in business longer have lower overhead than newcomers and can undercut them, he says. And prices vary among regions.

‘The real drugs millionaires are right here in the United States’

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CBS News was there when the U. Coast Guard unloaded nearly one billion dollars worth of seized drugs in San Diego. Just seeing it for the first time, and seeing the sheer amount of drugs on it — almost 18, pounds. This year for the Coast Guard, working with the military and U. The Coast Guard estimates it is only catching a third of what’s out there. Commandant Paul Zunkuft says the reason more cocaine is economics. As for the cocaine? Some will be kept for evidence, but most will be incinerated at a secret location.

Pablo Escobar and his partners called their business a cartel, but instead of controlling price and supply, it behaved far more like a criminal syndicate that pumped an endless supply of cocaine into the market and let the market set the price. It was not only a lethal purveyor of stimulants and mayhem, it was also a brilliant business, no different in many ways from a Fortune corporation, but built to operate wholly outside the law. The loyalty, often laced with violence, replaced the courts that a legal corporation would use to enforce contracts. Escobar was a master at wielding loyalty to get what he wanted. Escobar paid to build hundreds of homes in the impoverished area that had previously been a vast garbage dump. Violence was a masterful substitution for the merger and acquisition tactics of legitimate businesses. If we have some money to give to our mama, some money for sneakers and drinking, what else do we want?

Efforts to staunch the flow of cocaine in recent years have focused on the source — ripping coca plants out of the ground or dousing them with herbicide. And attacking cocaine production at the source has yielded some success at the beginning of that supply chain. In , Colombia, Bolivia, and Peru — the drug’s three biggest producers — destroyed some , acres of the crop, up from 15, in Read more: Billions of dollars of cocaine are smuggled into the US by sea every year, and the Coast Guard says it can only stop one-quarter of it. But the drag created on the production of the cocaine that’s shunted north toward the voracious US market doesn’t seem to be reflected in the price of the drug on US streets in recent years. The static nature of cocaine prices can likely be explained by the hold cartels and other traffickers have over the cocaine market at its origins — specifically their ability to dictate prices to producers. Wainwright elaborated:. Wainwright explained the Walmart comparison in his book. For farmers and manufacturers, «Their complaint is that Walmart and other big chains have such a big share of the groceries market that they are able more or less to dictate terms to their suppliers. Average prices of cocaine in the US at the retail and distributor level over the past 30 years.

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Efforts to staunch the flow of cocaine in recent years have focused on the source — ripping coca plants out of the ground or dousing them with herbicide. And attacking cocaine production at the source has yielded some success at the beginning of that supply chain. InColombia, Bolivia, and Peru — the drug’s three biggest producers — destroyed someacres of the crop, up from 15, in Read more: Billions of dollars of cocaine are smuggled into the US by sea every year, and the Coast Guard says it can only how much money could make for a kilo of cocaine one-quarter of it. But the drag created on the production of the cocaine that’s shunted north toward the voracious US market doesn’t seem to be reflected in the price of the drug on US streets in recent years. The static nature of cocaine prices can likely be explained by the hold cartels and other traffickers have over the cocaine market at its origins — specifically their ability to dictate prices to producers. Wainwright elaborated:. Wainwright explained the Walmart comparison in his book. For farmers and manufacturers, «Their complaint is that Walmart and other big chains have such a big share of the groceries market that they are able more or less to dictate terms to their suppliers. Average prices of cocaine in the US at the retail and distributor level over the past 30 years. US government data. Walmart, one of the world’s biggest retailers, and the drug cartels that control the world’s cocaine market are vastly different enterprises — most significantly in that Walmart is a legal business operating in accordance with national and local regulations, while cartels are organized-crime groups operating outside the law. Just as Walmart’s suppliers can strain under the low prices that the retailer can dictate, coca farmers are caught between pressure on their crops from authorities and prices dictated by traffickers. It’s not hitting the cartels.