Cocaine to hit record price in Australia as AFP make more arrests and drug seizures

Australian cocaine price wars are expected to see a new record broken, as the AFP smash organised crime networks.

Exclusive: Authorities are bracing for a white Christmas with cocaine prices expected to hit a record $420 a gram in time for the party season.

The cost of the drug has remained stable during the past year at $350 a gram – bolstered in part by a criminal gang collective dubbing themselves “the Commission” – allegedly making threats to harm anyone thinking of dropping the prices.

But in recent weeks, dealers have been demanding $420 a gram – the highest ever reported price for a standard delivery.

Despite 2022 being a “red letter year “for cocaine seizures, the street price has remained the same, according to the outgoing Australian Criminal Intelligence Commission CEO, Mike Phelan.

“It is supply and demand … and supply will always meet demand in this country,” Mr Phelan said.

“The supply side is so elastic here that, even when law enforcement make large seizures over a period of time, and we see a short-term dip in the amount of usage …. we then see it go back up again.”

Cocaine is set to hit a record high of $420 a gram in time for the party season.

In the past year, the AFP has reported several busts of Colombian cocaine worth more than $930 million.

In July the police smashed an Australian criminal network allegedly importing and manufacturing hundreds of kilograms of cocaine under the purported direction of a Colombian organised crime syndicate.

Nine people were arrested across Queensland, the Northern Territory and New South Wales.

The AFP has dismantled an Australian criminal network allegedly importing and manufacturing hundreds of kilograms of cocaine under the direction of a Colombian organised crime syndicate.

The AFP will allege a man arrested in Darwin, bodybuilder Rhys Alwyan Ferzt, directed the Australian activities of a Colombian-based organised crime group.

Police claim the man was receiving instructions from overseas about a shipment of cocaine smuggled into NSW.

A second body builder – Gold Coast man Gregory Murphy, 25, has also been charged by the AFP with conspiracy to manufacture drugs.

Fabio Fernandez Pulgarin, 48, and fellow Colombian national Alexander Villegas Jaramillo, 38, are also charged with one count each of conspiracy to manufacture a commercial quantity of cocaine, with their cases adjourned.

The AFP arrest a man in Darwin in relation to a Columbian-based organised crime group.

AFP Assistant Commissioner Eastern Command Kirsty Schofield said that bust was an extremely complex investigation spanning three states and multiple countries.

“The global syndicate identified in this operation was ruthless and well-resourced, building a custom-made laboratory to extract and produce cocaine for distribution to multiple organised crime groups in Australia,” Asst Comm Schofield said.

“This investigation has stopped a production line of cocaine from hitting Australian streets, and prevented millions of dollars of drug profit flowing back into the syndicate to fund their next criminal venture.”

Despite the seizures, drug users have told a drug survey by the University of NSW and the National Drug and Alcohol Centre that it is as easy as ever to obtain.

In the past six months the use of cocaine remained stable but participants reported using cocaine more frequently than before – most on a weekly basis.

Seventy nine per cent of people surveyed who consumed the drug said it was easy or very easy to obtain.

The NSW Crime Commission has reported the wholesale and street price of cocaine is almost double pre-pandemic levels.

The AFP has dismantled an Australian criminal network allegedly importing and manufacturing hundreds of kilograms of cocaine under the direction of a Colombian organised crime syndicate. Picture: Supplied

“This provides a substantial financial incentive for organised crime groups (OCGs) to target the Australian market, and creates a significant money laundering risk,” according to the Commission’s latest annual report.

The ACIC has reported that cocaine remains among the most consumed and seized drugs worldwide.

The ACIC latest Illicit Drug Data report confirmed that Colombia produces the majority of the world’s cocaine with drug profiling indicating that the majority of both border and domestic cocaine seizures in Australia originated in Colombia.

Australia already has the highest priced cocaine in the world, costing dealers $400,000 a kilogram depending on availability and purity. It also makes Australia its most profitable market.

Drug and Alcohol Research and Training Australia (DARTA) director Paul Dillon said the price hike is “kind of bizarre when you think about it”.

“The drug is very short acting, not good quality, incredibly expensive and it is high risk with quite a significant number of people being arrested with it,” Mr Dillon said.

“Still people put themselves out there for it.

“It is a lot to do with the perception of being glamorous – used by the rich, famous and powerful.”

Originally published as Cocaine to hit record price in Australia as AFP make more arrests and drug seizures