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Legal cannabis achieves what the «War on Drugs» never could

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Mexican cartels scale back cannabis exports

Legal cannabis may be achieving what a few decades of prohibition and repression were unable to: cut into the profits of the Mexican drug cartels.

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The latest data Border Police show that in 2015, seizures along the Mexican border reached their lowest level in 10 years. Customs agents seized 680 tonnes of cannabis, compared with 1,800 in 2009.

Read more: Mexican cannabis production declines as U.S. legalization proceeds

The report supports many reported stories of the difficulties experienced by Mexican cannabis growers in the face of increased competition. As domestic cannabis production explodes in states such as California, In Colorado and Washington, cannabis prices have collapsed.

«Two or three years ago, a kilo of cannabis was worth between 60 and 90$,» reported a Mexican farmer. to NPR December 2014. «Now cartels pay between 30 and 40$. That's a big difference. If the United States continues to legalize cannabis, they're going to put us out of business.».

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And it's not just a question of price: Mexican growers are also feeling the pressure of quality. «The quality of cannabis produced in Mexico and the Caribbean is inferior to that of American or Canadian cannabis,» noted the DEA in 2015. «Law enforcement agencies report that Mexican cartels are beginning to produce higher quality cannabis to satisfy U.S. demand.».

The decline in border seizures, coupled with an increase in cannabis use among the European population, suggests that Americans are sourcing through national networks. Experts warn, however, that the recreational cannabis market has little impact on this national preference; medical cannabis does, however.

California remains the leader in illicit cannabis production, and legal production under state medical supervision. A good barometer for this are the DEA data on cannabis eradication, which indicates where police forces are discovering and destroying cannabis plantations. In 2014, California seized 60% of all U.S. cannabis. According to these figures, California is still one step ahead of states where recreational cannabis is already legal (Washington, Oregon, Alaska, Colorado).

A new trend observed by the DEA is the export of cannabis from the USA to Mexico. The cartels are of course adapting to this new situation, and declining profits from cannabis sales are driving them to turn to heroin and meth.

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Aurélien founded Newsweed in 2015. Particularly interested in international regulations and the various cannabis markets, he also has an extensive knowledge of the plant and its uses.

1 Comment

  1. Juan

    March 10, 2016 at 20 h 37 min

    The Mexican peasants who used to grow cannabis have simply thrown themselves into growing poppies, which will flood their neighboring country with heroin... so legalization also has a perverse effect (less weed from Mexico but a staggering rise in hard drugs): let's face it, the black market is still there, the only difference being that the product is of better quality than the Mexican cannabis on the streets of legalized cities and states.
    As for the powerful cartels, they're making more profits than ever because they've practically abandoned cannabis and are concentrating more on supplying cocaine, heroin and meth, which generate more addictions, crime, wars between gangs and cartels, and so on. You've got to stop saying that legalization will put an end to all ills, because that's a load of rubbish. Open your eyes: between 60 and 70% of the cannabis sold in the US (even in legalized states) is black market. .

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