kilogram of cocaine bought for $20,000 in the US can now be sold in Australia for $200,000

kilogram of cocaine bought for $20,000 in the US can now be sold in Australia for $200,000, making it one of the most attractive drug markets in the world. Lebanese and Italian groups have traditionally dominated the Australian cocaine trade because of their highly organised structure and strong connections with South American cartels. But in recent years, just about every major organised crime group, from bikies to Triads through to Serbian groups, have begun trading in the illicit drug - and are even working together. Authorities are closely monitoring prices as an indicator of the amount of cocaine available, with police intelligence suggesting criminals are manipulating supply in order to maximise their cut. But the influx of players vying for domination in Australia’s major cities, together with an unrelenting flow of the drug through smuggling routes, has seen the price of cocaine plummet. Despite the strong profits, the price of the drug has been slashed by up to 42 per cent within a 12-month period, according to the latest figures from the Australian Crime Commission (ACC). The street-price for a gram of cocaine fell from $350 in New South Wales and $250 in South Australia to $200 in both states in the 2006/07 financial year. ACC chief executive officer Alistair Milroy confirmed the increased number of groups entering the trade could be a factor in the price cuts. "Organised criminal groups employ a range of strategies to deliberately manipulate their control over illicit drug markets or to enter new drug markets," Mr Milroy said. This may include aggressive marketing through undercut or reduced prices, or agreements between major players to set prices."