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usually lactose, resulting in a dry, white powder mix, which weighs approximately 1,400 grams. This
amount of powder can make about 28,000 50-milligram bags, each bag containing a mixture of 25
milligrams of heroin and 25 milligrams of adulterant, which are routinely analyzed at 50 percent
purity.
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Outlook on Prices
It is likely that prices will continue to be stable for Southeast Asian opium and heroin. Prices over the past
decade have withstood economic and political turmoil in Southeast Asia and vagaries of weather condi-
tions in the region. At the same time, the short-term fluctuations that were experienced in Southeast Asia
were not translated into price fluctuations in the Metropolitan New York Area, where Southeast Asian
heroin prices have remained remarkably stable. It is likely that this pattern will also continue in the future.
In much the same way that the international diamond trade is conducted, drug traffickers may be control-
ling the market by limiting the amount of heroin available on the streets while maintaining quality. The lack
of fluctuation in the street price of heroin in the United States suggests that the supply of heroin on the
world market far exceeds demand.
This report was prepared by the Strategic Europe/Asia/Africa Unit of the Office of International Enforcement Support. Comments and requests for
copies are welcome and may be directed to the Intelligence Production Unit, Intelligence Division, DEA Headquarters, at (202) 307-8726.
DEA-01004
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