The sustained high price for coca leaf was the likely
motivation for the farmers in Peru and Bolivia to
increase coca cultivation in 2004. In Peru, the price has
remained above US$ 2/kg since 2000, compared to
prices below US$ 1/kg in 1996/1997. Prices in Bolivia
are even higher at about US$ 5/kg, creating an incen-
tive for smuggling Peruvian coca leaf into Bolivia. Boli-
vian authorities seized 27 metric tons of Peruvian coca
leaves, out of a total of 155 metric tons.
Contrary to Bolivia and Peru, the market for coca leaf is
not developed in Colombia because most farmers
process the coca leaves into coca base. However, for the
remainder who sold leaf, prices were much lower than
in Peru and Bolivia, ranging between US$ 0.4/kg and
US$ 1.8/kg. In 2004, the average price for one kg of
coca base was about US$807. Although production
decreased in Colombia in 2004, coca leaf prices did not
increase. Compared to 2003, the prices even decreased
in Colombian pesos. One possible explanation of this,
still to be confirmed, is that the reduction of coca leaf
production in Colombia was offset by imports of coca
paste/base.