How Much Were The Profits Of The Sinaloa Cartel For Selling Drugs Within These Cities In The US?

Mica for cartelinsider.com

Jesus Zambada Garcia, better known as ‘El Rey’ in Anabel Hernandez’s book ‘The Traitor’, recounted the profits of selling cocaine from Colombia, whether in Mexico, Los Angeles, or even New York, where it is better paid, but the risks are high.

It should be mentioned that the figures explained by ‘El Mayo’ Zambada’s brother are from 2008, more than 15 years ago, but the price has not varied much despite the inflation, which is almost double compared to those dates.

On the other hand, the lawyer for the Zambada Niebla family stated that the person who sells drugs in the United States earns almost double what ‘El Señor del Sombrero’ does, despite it being the same operation; however, the risks involved can be enormous.

“When ‘El Mayo’ makes 100 million dollars, someone in the United States makes 200 for the same operation,” Fernando Gaxiola told me in 2012, in one of our conversations in Mexico City. If the government of the United States attributes billions of dollars in profits to the Sinaloa Cartel, there was someone who made double,” ‘Rey’ explained why. The mathematics of drug trafficking are as clear as those of any company in the world, and while the explanation was based on figures from 2008, the price has not changed,” journalist Anabel Hernández recounted in her book ‘The Traitor’.

An example of this is that the Sinaloa Cartel bought cocaine from Colombia at three thousand dollars per kilo, which is three million dollars per ton, while the inhabitants of Sinaloa sell it at thirteen thousand dollars, in addition to adding six thousand dollars for transportation, including payments for bribes.

“The Sinaloa Cartel purchases cocaine from Colombia at three thousand dollars per kilo. In Mexico, in Culiacan, the same kilo is sold at 13 thousand dollars. This price includes six thousand dollars as the cost of the raw material, which is the cocaine, and also includes transportation costs, which in turn includes the payment of bribes to ensure that the drug arrives from Colombia to Culiacan. This means that if ‘El Mayo’ sells cocaine there, his profit is seven thousand dollars per kilo, which amounts to seven million dollars per ton, of course if he makes that sale, his risk ends there,” reads the work of Hernández.

Similarly, in the United States, the further away a city is from its neighboring country to the south, the higher the price increases, as it becomes more difficult to sell there, making it challenging to complete a transaction.

On the other hand, in Los Angeles, the sale price of cocaine is 20 thousand dollars, of which four thousand dollars are transportation costs that include bribes to ensure the merchandise arrives, the raw material and transportation costs are 7 thousand dollars per kilo, which means a direct profit of 13 thousand dollars per kilo, 13 million dollars per ton. This is almost twice as much as someone selling in Culiacan. If the same kilo of cocaine reaches Chicago, the price is 25 thousand dollars, with 9 thousand for raw material and transportation expenses, meaning a profit of 16 thousand dollars per kilo, 16 million dollars per ton. In New York, the sale price of a kilo of cocaine is 35 thousand dollars, with the same costs of 9 thousand dollars as in Los Angeles, therefore the profit is 26 thousand dollars per kilo, 26 million dollars per ton.

‘The Big Apple’ proves to be a challenge for drug lords because the police in that state are very active, making it impossible to carry out operations at 100%, therefore it is important to have a large number of investors so that losses are kept to a minimum.

“Rey” explained that in New York it is harder to sell, because the police is very active, so it is very difficult to complete the operation 100 percent. “Rey” pointed out that when the Sinaloa Cartel buys tons of cocaine from Colombia, they do it with a pool of investors, and the expenses, profits, and risks are divided among them. For the Sinaloa Cartel, this is a way to strengthen and protect the capital of the investors while also making them financially powerful.

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Mica

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