Cocaine. Key Points 60 ILLICIT DRUG DATA REPORT

Cocaine Key Points The total weight of cocaine detected at the border in 2006 07 increased by over 600 percent. However, it is still lower than the peak detected weight recorded in 2001 02. More than half of the total weight of cocaine detected at the Australian border occurred in sea cargo shipments. Scatter importations of cocaine in the postal stream continue to be the most frequently detected method of importation. The total weight of cocaine seized nationally increased by approximately 1300 percent compared with 2005 06. The number of seizures increased by 70 percent. In 2006 07, national cocaine arrests increased by over 75 percent. 60 ILLICIT DRUG DATA REPORT 2006 07

Main Forms Cocaine is a crystalline alkaloid powder produced from material found in the leaves of the Erythroxylon coca plant, which is indigenous to South America (DEA, 2006). Cocaine has similar qualities to amphetamine and is the most powerful stimulant derived from a natural source (ONDCP, 2006). Historically, cocaine has been used in its pure chemical form, cocaine hydrochloride. Previously used in medicine as a local anaesthetic, especially for the eyes, nose and throat, cocaine is now widely used illicitly for its euphoric and stimulating effects. As a central nervous stimulant, cocaine interferes with brain function, while releasing excessive levels of dopamine (DEA, 2006). While cocaine powder is most commonly inhaled into the nasal passages, it can also be injected, smoked or ingested. When cocaine is consumed with alcohol, the human liver manufactures a chemical called cocaethylene. This intensifies the euphoric effect, but increases the risk of sudden death (NIDA, 2006). Crack is a freebase, smokeable form of cocaine. It is produced by processing cocaine hydrochloride with ammonia or sodium bicarbonate and water, which is then heated to remove the hydrochloride base. The name crack refers to the crackling sound that occurs when the rock is heated and smoked (NIDA, 2005). Crack cocaine is most prevalent in North America and is not frequently encountered in Australia (UNODC, 2007). International trends The overall production of cocaine remained relatively stable at an estimated 984 metric tonnes in 2006. A reduction in Colombian coca production in 2006 was offset by an increase in both Bolivia and Peru. Despite the decrease, Columbia continues its dominance as the leading supplier to the global cocaine market. In 2006, the combined illicit cultivation of coca bush for Bolivia, Colombia and Peru remained static at 156,900 hectares (UNODC, 2007a). In 2006 07, South American and international law enforcement agencies recorded significant seizures of cocaine. This included a single Colombian detection of 27 tonnes in 2007. However, increased detections have not significantly affected global supplies as syndicates remain adaptive to law enforcement operations. Colombian syndicates have continued to use West COCAINE 61

African countries as transhipment points for the movement of multi-tonne quantities of cocaine to Spain and Portugal for distribution in European markets. There is a continued trend of detections in countries such as China, the Hong Kong Special Administrative Region (SAR) of China, Cambodia and India, where cocaine has not, historically, been a drug of concern. In Columbia, 2,157 cocaine processing laboratories were destroyed in 2006. This is an increase of approximately 10 percent from 2005. In Peru, 684 cocaine processing laboratories were destroyed in 2006. Statistics are not available for the preceding year (BINLEA, 2007). After cannabis, cocaine remains one of the most frequently used illicit drugs in European countries. Research indicates that the prevalence of cocaine use over any other illicit drug use is highest amongst persons aged 15 to 34 years. An estimated 7.5 million people in this age group have reported using cocaine at least once in their lifetime (EMCDDA, 2007). There have also been an increasing number of reports of drug users in Europe using both heroin and cocaine simultaneously, known amongst user groups as speed-balling (EMCDDA, 2007a). In such cases, cocaine is often used in order to reduce the withdrawal effects of heroin or to enhance feelings of euphoria (EMCDDA, 2007). Domestic trends Australian border situation In 2006 07, cocaine detections at the Australian border rose significantly in weight and remained relatively constant in number when compared to 2005 06. In 2006 07, 609.9 kilograms of cocaine was detected in comparison to a total of 83 kilograms in 2005 06, an increase of 635 percent. The weight detected in 2006 07 is significantly larger than those detected from 2002 03 to 2005 06, however remains lower than the peak weight in 2001 02. The number of detections decreased slightly from 376 in 2005 06 to 366 in 2006 07 (see Figure 19). The increase in weight comes as a result of large detections in sea and air cargo. This included three detections over 100 kilograms, two in sea cargo and one in air cargo during 2006 07. Six kilograms was the maximum weight detected in the previous reporting period. Cocaine imported via air passenger couriers and through scatter importation methodologies (highfrequency but low-volume quantities) continues to be regularly detected (see Figures 20 and 21). 62 ILLICIT DRUG DATA REPORT 2006 07

Figure 19: Number and weight of detections of cocaine at the Australian border, 1996 97 to 2006 07 (Source: Australian Customs Service) 1200 Weight Number 700 1000 600 800 600 400 200 0 1996 97 1997 98 1998 99 1999 2000 2000 01 2001 02 2002 03 2003 04 2004 05 2005 06 Weight (kg) 2006 07 500 400 300 200 100 Number 0 Year Figure 20: Number of detections of cocaine at the Australian border, as a proportion of total detections, by method of importation, 2006 07 (Source: Australian Customs Service) Air Cargo (16.9%) Air Passenger/Crew (6.3%) Parcels Post (75.7%) Sea Cargo (1.1%) COCAINE 63

Figure 21: Weight of detections of cocaine at the Australian border, as a proportion of total weight, by method of importation, 2006 07 (Source: Australian Customs Service) Air Cargo (33.5%) Air Passenger/Crew (4.8%) Parcels Post (4.3%) Sea Cargo (57.4%) Significant border detections Significant border detections of cocaine in 2006 07 included: 141 kilograms of cocaine originating from Chile was detected in air cargo, sent from Hong Kong SAR of China to Sydney on 15 March 2007. 135 kilograms of cocaine was detected in a sea cargo consignment from Canada to Brisbane on 08 September 2006. 35 kilograms of cocaine powder was detected in sea cargo from Mexico to Sydney on 15 May 2007. 10.9 kilograms of cocaine powder was detected on 19 October 2006, sent by air cargo from Guyana to Sydney. 10 kilograms of cocaine was detected in a truck brake drum in air cargo, sent from the United States of America (US) to Sydney on 16 May 2007. 64 ILLICIT DRUG DATA REPORT 2006 07

Importation methods Unlike 2005 06, there were detections of sea cargo importation of cocaine in 2006 07. The total weight of cocaine importations through sea cargo was 350 kilograms. A total of 204.2 kilograms of cocaine was detected via air cargo, 29.6 kilograms detected in the possession of air passengers, and 26 kilograms in postal articles. There were 30 detections of cocaine weighing over one kilogram (13 were detected in air cargo, 10 with air passengers, 4 in postal articles and 3 in sea cargo). While Colombia has decreased coca production, this has been offset by increased cultivation in Bolivia and Peru. This changing dynamic could have a number of effects, such as the potential for new criminal networks to become established in Australia. Canada has emerged as a transit point for cocaine entering Australia. In 2006 07, there was an increase in seizures at the Australian border from Canada through syndicates that previously imported MDMA or methylamphetamine. International reporting shows that increasing amounts of cocaine are being seized in Asia, particularly China and India. In 2006 07, West African organised crime networks continued to be involved in the importation of cocaine into Australia via the postal, air cargo and passenger streams. Embarkation points Embarkation points of significant attempted cocaine importations (an aggregate detected weight of cocaine of at least one kilogram) in 2006 07 were, in weight order, Chile, Canada, Hong Kong SAR of China, Mexico, the US, Argentina, Brazil, Guyana, Thailand, Costa Rica, Nigeria, Colombia, China, the United Arab Emirates, Peru, Germany and Venezuela. Domestic market indicators According to the 2004 National Drug Household Survey, the rate of reported recent cocaine use (in the last 12 months) was low and stable at one percent. Lifetime use of cocaine also remained moderately low at approximately five percent (AIHW, 2005). Research on drug use amongst police detainees (incorporating surveys and urinalysis) in 2006 found only two percent tested positive to cocaine (Mouzos et al., 2007). COCAINE 65

In Australia, injecting cocaine users were reported to also use heroin, cannabis, and benzodiazepines (Kaye, 2007). Similar to trends in European countries, cocaine users in Australia are also known to speed-ball (EMCDDA, 2007). Non-injecting cocaine users were reported to use methylamphetamine, cannabis and ecstasy (Kaye, 2007). Generally it is believed that the majority of Australian cocaine users are from a section of the population who rarely come to the attention of law enforcement agencies, making it difficult to define the dynamics of the Australian cocaine market. As stated by Campbell (2001), this user group includes: culturally influenced users for whom cocaine symbolises success; action-oriented success seekers who use the drug for coping with variations of success; young people of high socio-economic status for parties and social occasions; and risk takers and stimulus seekers. However, a study examining the characteristics and dynamics of cocaine supply and demand in Sydney and Melbourne identified two distinct groups of cocaine users. While the first group have similar traits to those described above, the second group of economically and socially marginalised users, primarily located in Sydney, appear to be the highest users of cocaine in Australia. This second group typically inject cocaine, often in conjunction with heroin and fund their use through government benefits, sex work and drug dealing (Shearer et al., 2005). This finding is supported by another study which reported higher levels of unemployment and lower levels of education to be prevalent among cocaine injectors (Kaye, 2007). Price In 2006 07, cocaine was cheapest in New South Wales and South Australia, with prices starting from $200 per gram. Both jurisdictions reported decreases in the starting price per gram from 2005 06, with New South Wales decreasing from $350 and South Australia from $250. The starting price per gram in Victoria also decreased from $350 to $300. Western Australia reported the highest upper level price of $500 per gram, an increase of $150 per gram from 2005 06. 66 ILLICIT DRUG DATA REPORT 2006 07

Purity Figure 22 illustrates the fluctuations in cocaine purity analysed in Australia since 2002. Due to the infrequency of seizures analysed in some jurisdictions, only New South Wales, Victoria, Queensland and Western Australia are shown in the chart. During this reporting period, median purity levels ranged from 28.5 to 90 percent. Western Australia reported the highest purity levels during the fourth quarter of 2006, at 90 percent. The spike in purity in Western Australia is the result of analysis of one sample only and may not be indicative of general purity in the state during that quarter. Figure 22: Median purity of cocaine samples, 2002 03 to 2006 07 100 90 NSW VIC QLD WA 80 70 Purity (%) 60 50 40 30 20 10 0 q3 2002 q4 2002 q1 2003 q2 2003 q3 2003 q4 2003 q1 2004 q2 2004 q3 2004 q4 2004 q1 2005 q2 2005 q3 2005 q4 2005 q1 2006 q2 2006 q3 2006 q4 2006 q1 2007 q2 2007 Quarter Availability According to a national study of injecting drug users in 2006, there was a lack of data from most jurisdictions on the availability of cocaine. Of the responses obtained, users were primarily from New South Wales. Within New South Wales, 71 percent of respondents described cocaine as easy or very easy to obtain (O Brien et al., 2007). In a national study of regular ecstasy users, only 28 percent reported cocaine as easy to obtain, with 41 percent reporting it to be difficult to obtain (Dunn et al., 2007). COCAINE 67

Seizures and arrests Nationally, the number and weight of cocaine seizures in Australia increased dramatically compared with 2005-06. There was a 70 percent increase in the number of seizures. The weight of cocaine seizures increased by approximately 1,300 percent but remained lower than seizure weights reported in 2001 02 (see Figure 23). The most significant weight increases in cocaine seizures occurred in Queensland and New South Wales (see Table 13). Cocaine seizures in New South Wales accounted for nearly 75 percent of the national total, up from 37.5 kilograms in 2005 06 to 481.1 kilograms in 2006 07. Queensland experienced the largest percentage increase in seizure weight, up from 942 grams in 2005 06 to 161.1 kilograms in 2006 07. Western Australia, Tasmania and the Australian Capital Territory reported minor increases in the number of cocaine seizures. Figure 23: National cocaine seizures, by weight and number, 1997 98 to 2006 07 1200 Weight (kg) Number 1400 1000 1200 800 600 400 200 0 1997 98 1998 99 1999 2000 2000 01 2001 02 2002 03 2003 04 Weight (kg) 2004 05 2005 06 2006 07 1000 800 600 400 200 Number 0 Year 68 ILLICIT DRUG DATA REPORT 2006 07

Table 13: Number, weight and percentage change of national cocaine seizures, 2005 06 and 2006 07 Number Weight (grams) State/territory a 2005 06 2006 07 % change 2005 06 2006 07 % change NSW 507 920r 81.5r 37,452 481,060r 1184.5r Vic 51 48r -5.9r 3,698 4,196r 13.5r Qld 79 153r 93.7r 942 161,081r 16999.9 SA 16 10-37.5 2,425 80-96.7 WA 33 39r 18.2r 1,513 187r -87.6r Tas 1 2 100.0 1 7 600.0 NT 3 3 0.0 5 26 420.0 ACT 7 9r 28.6r 26 1-96.2 Total 697 1,184r 69.9r 46,062 646,638r 1303.8r a. Includes seizures by state/territory police and AFP for which a valid seizure weight was recorded. Table 14: Number and percentage change of national cocaine arrests, 2005 06 and 2006 07 Arrests State/ territory a 2005 06 2006 07 % change NSW 208 367r 76.4r Vic 98 127 29.6 Qld 67 143r 113.4r SA 14 11-21.4 WA 3 42 1300.0 Tas 0 1 - NT 1 1 0.0 ACT 5 7 40.0 Total 396 699r 76.5r a. Includes arrests by state/territory police and AFP. COCAINE 69

Nationally, cocaine arrests increased by 77 percent compared to the previous reporting period. The majority of cocaine arrests occurred in New South Wales, Victoria and Queensland. The number of cocaine arrests increased in all jurisdictions with the exception of South Australia and the Northern Territory. The most notable increases in cocaine arrests occurred in New South Wales (76 percent), Queensland (113 percent) and Western Australia (1,300 percent) (see Table 14). Care should be exercised in comparing arrests in all states and territories due to the small number of arrests in some jurisdictions. National impact The total weight of cocaine detected at the border increased from 83 kilograms in 2005 06 to 609.9 kilograms in 2006 07, an increase of 635 percent. However, this is still lower than figures reported in 2001 02. While Canada remains a key embarkation point for cocaine importations to Australia, a number of countries including Nigeria and Germany have emerged as embarkation points. Canadian organised crime groups, who were previously involved in MDMA or methylamphetamine importation, have also been linked to an increase in cocaine detections. Scatter importations of cocaine in the postal stream continue to be the most frequently detected method of importation. More than half of the total weight of cocaine detected at the Australian border occurred in sea cargo shipments. This is a significant shift in methodology from the previous year where there were no detections of importations via sea cargo shipments. Border detections of cocaine suggest that Sydney remains the major point of entry into Australia. In 2006 07, a large sea cargo detection occurred in Queensland, which may indicate a change in established trafficking routes. The total weight of cocaine seized nationally in 2006 07 increased by approximately 1,300 percent. Compared to 2005 06, the number of national cocaine seizures increased by 70 percent and cocaine arrests increased by 77 percent. The most notable increases in arrests occurred in New South Wales, Queensland and Western Australia. New South Wales and Queensland also experienced the largest increases in percentage and weight of seizures and the largest single detections of cocaine at the border. While New South Wales is likely to remain the predominant point of entry for cocaine into Australia, these figures indicate Queensland is developing as a prominent entry point. 70 ILLICIT DRUG DATA REPORT 2006 07

References Australian Institute of Health and Welfare (AIHW), 2005. 2004 National Drug Strategy Household Survey detailed findings (online). Drug Statistics Series, No. 16, Canberra. <http://www.aihw.gov.au/publications/index.cfm/title/10190> [Accessed 12 December 2007]. Bureau of International Narcotics and Law Enforcement Affairs (BINLEA), 2007. International Narcotics Control Strategy Report (online). United States Department of State, Vol 1, March 2007. <http://www.state.gov/p/inl/rls/nrcrpt/2007/vol1/html/80855.htm> [Accessed 7December 2007]. Campbell, A., 2001. The Australian illicit drug guide. Black Inc., Melbourne. DEA see U.S. Drug Enforcement Administration. Dunn, M., Degenhardt, L., Campbell, G., George, J., Johnston, J., Kinner, S., Matthews, A., Newman, J., and White, N., 2007. Australian Trends in Ecstasy and Related Drug Markets 2006: Findings from the Ecstasy and Related Drugs Reporting System (EDRS), Monograph No. 61, National Drug and Alcohol Research Centre, University of New South Wales, Sydney. European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), 2007. Cocaine and Crack Cocaine: A Growing Public Health Issue (online). Lisbon. <http://www.emcdda.europa.eu/publications/selected-issues/cocaine> [Accessed 7 December 2007]. European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), 2007a. Annual Report 2007: the state of the drugs problem in Europe (online). Lisbon. <http://www.emcdda.europa.eu/attachements.cfm/att_42156_en_tdac07001enc.pdf> [Accessed 7 December 2007]. Kaye, S., 2007. Illicit drug use in Australia: Epidemiology, use patterns and associated harm (online). 2nd Edition, National Drug and Alcohol Research Centre, University of New South Wales, Sydney. <http://www.nationaldrugstrategy.gov.au/internet/drugstrategy/publishing.nsf/content/ 17B917608C1969ABCA257317001A72D4/$File/mono-63.pdf> [Accessed 20 November 2007]. Mouzos, J., Hind, N., Smith, L., and Adams, K., 2007. Drug use monitoring in Australia: 2006 annual report on drug use among police detainees (online). Research and Public Policy Series, No. 75, Australian Institute of Criminology. <http://www.aic.gov.au/publications/rpp/75/rpp75.pdf> [Accessed 20 November 2007]. National Institute on Drug Abuse (NIDA), 2005. Research Report Series - Cocaine Abuse and Addiction (online). National Institutes of Health. <http:// www.nida.nih.gov/researchreports/cocaine/cocaine2.html#crack> [Accessed 7 December 2007]. National Institute on Drug Abuse (NIDA), 2006. NIDA InfoFacts: Crack and Cocaine (online). National Institutes of Health. <http://www.drugabuse. gov/infofacts/cocaine.html> [Accessed 20 November 2007]. O Brien, S., Black, E., Degenhardt, L., Roxburgh, A., Campbell, G., de Graaff, B., Fetherston, J., Jenkinson, R., Kinner, S., Moon, C., White, N., 2007. Australian Drug Trends 2006: Findings from the Illicit Drug Reporting System (IDRS), Monograph No. 60, National Drug and Alcohol Research Centre, University of New South Wales, Sydney. Office of National Drug Control Policy (ONDCP), 2006. Drug facts: Cocaine (online). Executive Office of the President of the United States. <http:// www.whitehousedrugpolicy.gov/drugfact/cocaine/index.html> [Accessed 10 December 2007]. Shearer, J., Jonston, J., Kaye, S., Dillon, P. and Collins, L., 2005. Characteristics and dynamics of cocaine supply and demand in Sydney and Melbourne (online). Monograph Series No. 14, National Drug Law Enforcement Research Fund, Adelaide. <http://www.ndlerf.gov.au/pub/cocaine_sydney_ Melbourne_Full.pdf> [Accessed 20 November 2007]. United Nations Office of Drugs and Crime (UNODC), 2007. World Drug Report 2007 (online). UNODC, Vienna. <http://www.unodc.org/pdf/research/wdr07/wdr_2007.pdf> [Accessed 20 November 2007]. United Nations Office on Drugs and Crime (UNODC), 2007a. Coca cultivation in the Andean region: A survey of Bolivia, Colombia, Ecuador and Peru (online). UNODC, Vienna. <http://www.unodc.org/pdf/andean/andean_report_2007.pdf> [Accessed 4 December 2007]. U.S. Drug Enforcement Administration (DEA), 2006. Cocaine (online). United States Department of Justice. <http://www.usdoj.gov/dea/concern/cocaine.html> [Accessed 20 November 2007]. COCAINE 71