How the value of Cocaine Increases from Grower to Dealer

Taken from an article by Reuters, below is the increase in price of a kilo of cocaine as it is trafficked on the black market from farmers who grow coca to the street dealers.

  • Farmers in the Andes sell a kilo of coca paste to processors for $500 to $800.
  • After the coca is processed into Cocaine, it is sold to Mexican Drug Cartels for up to $6,000 a kilo.
  • The drug cartels smuggles it into the United States and Europe and break up the kilos of cocaine to sell individually as grams.  The total value of the kilo of cocaine generates between $80,000 to $100,000.

(See additional cocaine facts.)

Source:  Robin Emmott, “Cartel Inc: In the company of Narcos,” Reuters, January 14, 2010.