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Understanding the illegal drug supply chain structure: a value chain analysis of the supply of hashish to Europe

Economics

Understanding the illegal drug supply chain structure: a value chain analysis of the supply of hashish to Europe

M. Sánchez-pérez, M. B. Marín-carrillo, et al.

This insightful research by Manuel Sánchez-Pérez, María Belén Marín-Carrillo, María Dolores Illescas-Manzano, and Zohair Souilim delves into the hashish supply chain from Morocco to Europe, revealing a staggering 7000% markup from production costs to end-user prices, driven by a complex distribution network and dealer dynamics.

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Playback language: English
Abstract
This paper analyzes the structure of the hashish supply chain from Morocco to Europe using a mixed-methods approach. Data were gathered from field interviews with cannabis producers and dealers, along with secondary information from official statistics and reports. The findings reveal an unequal contribution across distribution levels, with end-user prices increasing by 7000% from production cost. The chain's high variable costs and limited fixed costs contribute to instability and continuous adaptation. Dealers exert significant control, creating a supply-push system leveraging information sharing for resilience. The research has implications for law enforcement, financial investigations, development agencies, and health authorities.
Publisher
HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS
Published On
Jun 01, 2023
Authors
Manuel Sánchez-Pérez, María Belén Marín-Carrillo, María Dolores Illescas-Manzano, Zohair Souilim
Tags
hashish supply chain
Morocco
Europe
cannabis
dealer control
economic analysis
variable costs
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