24 May 2020

OCCRP: What Lockdown? World’s Cocaine Traffickers Sniff at Movement Restrictions

But OCCRP reporters have found that the world’s cocaine industry — which produces close to 2,000 metric tons a year and makes tens of billions of dollars — has adapted better than many other legitimate businesses. The industry has benefited from huge stores of drugs warehoused before the pandemic and its wide variety of smuggling methods. Street prices around Europe have risen by up to 30 percent, but it is not clear how much of this is due to distribution problems, and how much to drug gangs taking advantage of homebound customers. [...]

As many countries begin partially reopening their economies, traffickers may now be in a position to become more powerful than ever. With economies in distress and many businesses facing ruin, cash-rich narcos may be able to cheaply buy their way into an even bigger share of the legitimate economy. [...]

Exports to the world’s other biggest cocaine market, Europe, have suffered even less disruption. Unlike exports to the United States, cocaine bound for Europe is typically moved in legal air and sea cargoes, especially fast-moving fresh goods such as flowers and fruit. The latter, as food, has continued to move unimpeded during the pandemic, helping feed Europe’s 9.1 billion euro-a-year cocaine habit. [...]

Perhaps as a response to increased seizures, the street price of cocaine has risen by 20 to 30 percent during the lockdown period from mid-February until the end of April compared to the same period last year, according to Sciuto of the DCSA. Six months, criminal groups in Europe paid 25,000 to 27,000 euros for a kilogram of cocaine; they now fork out 35,000 to 37,000 euros, he said, adding that Spanish police have noticed the same trend.

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