Podcast Summary: The Indicator from Planet Money

Episode: How cocaine smuggling through Latin America really works
Date: January 6, 2026
Hosts: Darian Woods & Stephen Bisaha
Guest: John Grillo, Mexico City-based journalist, author of the El Narco trilogy

Overview

This episode explores the cocaine supply chain from coca leaf in the Andes to cocaine on US streets, with special attention to how trafficking routes shifted over decades and the alleged role of the Venezuelan government. The discussion is grounded by expert insight from John Grillo, who draws on 25 years reporting on Latin American drug trafficking.

Key Discussion Points & Insights

1. The Supply Chain: From Leaf to Nose

• Origins of Cocaine (03:38)

  • Cocaine production begins in the mountains of Colombia, Bolivia, and Peru, where coca is cultivated by small farmers.
  • John Grillo: “These are not really cartel figures, organized crime figures. They're like small farmers who grow this crop and then they'll sell the leaves or they'll turn it into, into the paste.” (04:01)

• Processing and Standardization (04:13)

  • Farmers process leaves into coca paste, which is then refined into one-kilo bricks—the standard unit for trafficking.
  • Bricks are marked with producer seals to identify their origin and ownership.
  • John Grillo: “The kilo brick is really the operating unit of the cocaine trade...they are very, very standardized.” (04:21, 04:39)

• Evolution of Smuggling Routes (05:10)

  • Decades ago, cocaine often went straight from Colombia to the US. US crackdowns led traffickers to route through Mexico and Central America.
  • Mexico’s pre-existing smuggling infrastructure for marijuana and heroin made it a key transit hub.

• Corruption and Violence in Mexico (05:39)

  • As cocaine money flooded into Mexico, cartels bought off officials, politicians, and built armies of hitmen.
  • John Grillo: "You're buying off vast amounts of law enforcement and politicians...creating a real bloodbath in Mexico, pumping billions of dollars into this business." (05:39)

• The Venezuelan Shift (06:04)

  • US-Colombia crackdowns prompted traffickers to use Venezuela as a jumping-off point for flights to Honduras, Mexico, or other Caribbean locations.
  • Venezuela became a crucial hub, and its involvement in trafficking deepened.

2. How the Supply Chain Translates into Big Money (06:47)

• Each stage multiplies the value—by the time a kilo brick crosses the US border, its price skyrockets.
• John Grillo: “You could invest $1,000 and get back $10,000.” (06:52)
• After entering the US, cocaine is cut, repackaged, and sometimes converted into crack to sell at even higher prices—up to $60,000+ per kilogram.

3. Government Complicity and Indictments (08:07)

• The US government has accused top Venezuelan officials, including President Maduro, of facilitating cocaine shipments.
• Indictments reference the "Cartel de los Soles" (Cartel of the Suns), named after the sun emblem on Venezuelan military uniforms.
• John Grillo: “I do think there are credible accusations.” (08:32)
• Multiple sources, including traffickers and officials, describe active complicity by elements of the Venezuelan military and government in allowing and aiding cocaine flights.
  • “I did an interview with a guy who ran airplanes of cocaine. The Venezuelan government then were totally, you know, on board. They were allowing them to use the airports to move cocaine.” (08:58)

4. The Recent US Strikes and Legal Questions (09:21)

• The Trump administration justified recent attacks on ships and Venezuelan soil as targeting traffickers.
• Prior to these strikes, the US frequently intercepted drug boats off Venezuela—backs up smuggling claims but doesn't prove every interception involved cocaine.
• John Grillo: “They are involved in cocaine trafficking. But is that a reason to in itself to invade the country?” (09:48)
• International law experts widely condemned the January 3rd US strikes as illegal.

5. The Big Picture: Supply and Demand (10:14)

• The show closes by highlighting US and European demand as the ultimate driver for cocaine production, trafficking, and the resulting corruption and violence.
  • Darian Woods: “Of course, the US and Europe provide the demand for cocaine. That's what motivates turning a barrel of green leaves in the Andes into cocaine crystals...smuggled across the US and sold on the street.” (10:14)

Notable Quotes & Memorable Moments

• “He held the cocaine to me and he said, go on, have a taste... you can feel your tongue going numb, can't you?”
  —John Grillo, recounting a military general's demonstration (03:15)

• “You could invest $1,000 and get back $10,000.”
  —John Grillo on markups in the cocaine trade (06:52)

• “I did an interview with a guy who ran airplanes of cocaine. The Venezuelan government then were totally, you know, on board. They were, they were allowing them to use the airports to move cocaine.”
  —John Grillo, on direct state involvement (08:58)

• “They are involved in cocaine trafficking. But is that a reason to in itself to invade the country?”
  —John Grillo, on justifications for military action (09:48)

Timestamps for Key Segments

• 03:15 – Grillo’s personal encounter with seized cocaine
• 03:38 – Coca cultivation and the role of small farmers
• 04:13 – Processing and kilo bricks
• 05:10 – Shifts in trafficking routes to Mexico
• 06:04 – Venezuela’s emergence as a trafficking hub
• 06:47 – The price markup across the supply chain
• 08:07 – Indictment of Venezuelan government, Cartel de los Soles explained
• 08:58 – Firsthand accounts of Venezuelan complicity
• 09:21 – Recent US military action and legal questions
• 10:14 – Closing reflection on US/European demand

Tone and Style

The hosts maintain a brisk, informative, and slightly wry tone, weaving together sobering facts with human stories and dry humor—especially when reflecting on the surreal aspects of the drug trade (e.g., Grillo’s “taste test” story). The episode is direct, clear, and packed with concise insights, giving listeners a crash course in both the macroeconomics and gritty realities of cocaine trafficking in less than 11 minutes.

Summary

This episode provides a compelling primer on the Latin American cocaine supply chain, highlighting the ripple effects from remote farms to the streets of US cities. It underscores the evolution of trafficking routes in response to law enforcement pressures and delves into the murky role of government complicity—with a particular focus on Venezuela’s alleged involvement. The hosts balance big-picture analysis with memorable, ground-level stories, ultimately framing the issue as a cycle fed by insatiable demand in the US and Europe.